Brazil is the king of South America. The country may not be part of Spanish-speaking Latin America, but it is a huge part of Latin America’s economy. Brazil was riding high when China was buying everything under the sun. But when China hit an economic wall due to a slowdown in manufacturing, Brazil went into an economic nose dive. The country is just pulling out of that nose dive. For the last four years, foreign investors didn’t want to talk about Brazil. The political turmoil along with high inflation and unemployment put a “closed sign” on the doors of Brazil’s business community.
But Brazil is coming back, and investment managers are pushing Brazilian assets again. One of those managers is Igor Cornelsen. The former bank executive, and current investment genius who knows how to make money in his country. His Florida company, Bainbridge Investments, helps foreign investors navigate the political and economic channels in Brazil. He usually shares three tips with potential Brazilian investors. The three tips are simple ways to turn a profit in a startup market that has a lot of potential.
The first thing Igor Cornelsen likes to say is get acquainted with the locals if you want to make money in Brazil. Brazilian love to share information, and they are social media junkies. If investors find a reputable contact in Brazil, and they do their own research, part of a profitable investment equation is in place. The next thing Igor Cornelsen likes to say is expect the unexpected, especially when it comes to red tape.
The Brazilian government is famous for unnecessary red tape when it comes to regulations, taxes, and investments. But the third Cornelsen tip is also important. Investors should know how the currency exchange market works in Brazil. The Central Bank can change the commercial exchange rate at will. But there is also a regular exchange rate and a black market rate. Both rates, change daily.
Brazil happens to be an attractive place for investors despite its endless scandals. It has a huge market with over 200 million inhabitants. This is one of the things that make Brazil an ideal market for multinationals.
Because the stock prices are at the bottom of the cycle, and the attraction of the natural resources in Brazil, more people have considered investing in new businesses in this nation. It’s anticipated that this will be the turning point for the Brazilian economy. Although it sounds exciting to invest in Brazil at the moment, how should investors start? Igor Cornelsen’s pointers:
- Connecting with the natives – just like the other aspects of the Brazilian culture, finance and business is determined by relationships and networks. Igor believes that it’s not difficult to find the connections.
- Get ready to adhere to regulations – Cornelsen recommends that potential investors be ready for the red tape when entering the market. Investors have to face regulatory complexity, market rigidity, pervasive bureaucracy, and high taxes are obstacles investors will face.
- Understand foreign-currency restrictions – only authorized financial institutions are allowed to conduct foreign currency transactions.
Who Is Igor Cornelsen?
Cornelsen is a retired banker and an investor. He is currently connected with the Bainbridge Investment Inc. helping the company in stock market investing as well as foreign exchange and commodity investment. He carved his name in the field of investment in his native country, Brazil, where he became one of its prominent bankers. A number of the leading banks in Brazil have been blessed with the opportunity of being led and managed by this astute investment banker. In so doing, he effectively controlled a huge portion of Brazil’s entire economy.
Cornelsen is now based in South Florida, in the United States. This is just the right place for this elite investment advisor. Playing golf is taking a good portion of his retirement days. He is still active in making investments here and there and as an investment consultant. He regularly dishes out sage investment advices on novice and experienced investors which he draws out from his extensive experience in working with financial institutions throughout most of his career.
Quick Career Bio
Igor Cornelsen is a native of Brazil, being born in Curitiba on Oct. 4, 1947. After his rudimentary primary and secondary education, he enrolled at the college of engineering at Parana’s Federal University. There was stiff competition with respect to admission in this university since the Federal University is the only educational institution in Santa Catarina and Parana offering engineering courses at that time. However, after spending two years studying engineering, Cornelsen shifted to economics, also at the same school.
He eventually earned his economics degree in 1970 and afterwards got a job and started working with an investment bank. Calculators were rare at that time and computers were not yet introduced as a consumer item. So, Cornelsen was limited to using a slide rule to compute compounded interest rates. But with his talents and skills, Cornelsen started to make waves in the investment sector. He eventually ended up in Rio where he got the chance to work in investment banking. In due time, he was regarded as a top investment banker, and was promoted as one of the members of Multibanco’s board of directors in 1974. Two years, later he rose to the top echelon of the bank when he was elected as its CEO in 1976.
Igor’s Career As An Investment Counselor
Cornerlsen’s career took a turn when Bank of America acquired Multibanco in 1978. He went on to pursue other business opportunities and moved to Unibanco, one of Brazil’s top investment firms. He stayed with Unibanco until 1985 and then moved to Libra Bank PLC, a London Merchant Bank subsidiary. It is here where his present career as an investment consultant started.
After his successful stint at Libra Bank, Cornelsen, together with some of his London colleagues, transferred to Standard Chartered Merchant Bank. He became a member of the bank’s board of directors and its Brazil representative for the next seven years. Cornelsen eventually left this bank in 1995 when he formed his own investment company. His investment firm is offering the same investment consulting services he was providing his former bank. Currently, Cornelsen has an investment fund which he operates daily and is actively working as an investment manager.
Here Are Some Of Cornelsen’s ‘Words Of Wisdom’ In Investing
Through the years, Igor has collected enough ideas and concepts about investment and investing that will be beneficial to both neophyte and well-experienced investors. Here are some of his investment words of wisdom.
- Start early
Cornelsen’s advice to would-be-investors is to start as early as possible. He believes that time is an important element in most investments therefore; people should start investing early on. They don’t have to be young, but if a person wants to maximize his investment, he should begin investing as soon as he can.
- Never lose money
If you are losing your money in an investment, get out as soon as possible. Don’t lose your money is an important law in investing. Yes, you are risking your money in investing and risk will always be present in any type of investment. But if an investment is costing you money, and there are no profitable returns coming in, it is better to get out and look for another and greener pasture.
- Get an investment counselor
Yes, you can invest your money on your own, but it is better if you will get the help of an investment adviser especially if you are a newbie. Only when you are able to solidly understand the world of investment should you use our own wisdom and experience.
- Diversify your investment portfolio
Diversifying investment portfolios is one of the safest investment practices that you can follow. This will minimize the risks that you are taking every time that you invest your money. It will also increase your chances of gaining more revenues by having more than one source.