There is always a key to understand a country. According to Patria, the Brazilian Private Equity firm partially owned by Blackstone, the magic formula is a blend of discipline and long-term investment. While Forex exchange fluctuations and the frequent economic downturns that characterize the Brazilian economy frequently make the international news, the reality is that over the long-term the Brazilian economy has showed a tendency to ‘regress towards the mean’. By investing in resilient sectors and taking a very disciplined approach, it is thus possible to obtain significant returns and long-term profitability even in such a difficult country.
Also at Embraer, one of the major aircraft manufacturers in the world, the forty-eight years old company history is a confirmation of its outstanding success. Still family-owned and now a billion making company, Embraer is characterized by the coexistence of difference business sectors, a strong focus on people and by a very high level of innovation. Particularly inspiring was the (surprise) visit from the CEO, who highlighted how in an industry where a single mistake can cost billions of dollars, it is of crucial importance to acquire talents and to have the best business people on board.
On with our company visit, we had the chance to understand the strategies leading Cosan, a huge conglomerate managing businesses as diverse as railroads and gas distribution, and who is convinced that by a strong discipline and a savvy portfolio management it is possible to ‘make a difference in this country’.
Finally, we spent an afternoon wandering around the campus of Itàu, the first bank of Brazil. At Itàu, we had the unique opportunity to take a tour of its proprietary art collection (the 8th largest corporate collection in the world!) and to discuss the future of banking and its digital transformation. Closing the circle right where we started, our guests proudly shared why many foreign companies are not thriving in a country where there is huge space for growth. ‘Brazil is not for amateurs, it’s for professionals’: same recipe, but spelt in different words.
And finally, to understand a country, there is no better way than wandering around the city and making the best out of it. After a walking tour of the city center, a stop at Vila Madalena and Beco de Batman where street art prospers, a visit to the Brazilian’s Central Park (Park Ibirapuera) and a lunch break spent visiting the MASP museum, where the largest collection of European art of the Southern Hemisphere is treasured, we learned a fun fact about São Paulo. Unlike their carioca cousins, Paulisti do not have beaches. How they compensate? Having the best Malls and calling them ‘their beaches’. Hard to miss the resemblance: a part from the long-hours spent there and the warm heat filtering through the large glass windows, Malls display similar therapeutically effects as beaches. For each hour (and dollar) spent, there is a significant surge in mood and relaxation. Money back guarantee.
~Alice Signori ‘18
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