Petrobras and Vale: The Keys to Brazil's Growth
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As I mentioned in part one of this series, the economic growth story of Brazil starts with energy and minerals -- more specifically with Petrobras (PBR) and Vale (RIO). Any discussion of this former Portuguese colony is incomplete without acknowledging these titans of industry.
Brazil is blessed with an abundance of natural resources, ranging from oil to iron ore, and understands one important fact -- the world needs more energy and basic materials.
Am I stating the obvious? Yes, of course, but I am constantly amazed at how many companies don't share this same understanding of supply and demand (Exhibit A is ExxonMobil, in my opinion).More important, these Brazilian conglomerates have become world-class institutions with the management foresight and financial savvy to monetize their resource bounty. China Watch: Brazil's One Way In (Video) One way to get in on the action with China is to play Brazilian companies with Chinese connections. Patrick Schultz reveals how we can play one emerging market to play another. To watch the video, click the player below:
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