Igor Cornelsen’s Thoughts on Intelligent Investing: Including How To Avoid Coronavirus Pitfalls
Igor Cornelsen is an investment manager with years of experience in the field. He was born in Brazil in 1947, and acquired his education at the Federal University of Parana while pursuing a degree in engineering. However, he changed his course of studies in order to focus on economics, and that decision shaped many future events in his life.
Once he completed his undergraduate degree in economics, he was primed to acquire a position in the field of investment banking. He began working at Multibanco after graduating, and he also worked at Unibanco. His work in management gave him insights into the patterns and behaviors related to stock performance, so his views on investing in company stocks are directly related. These positions also gave him the foothold he needed to eventually master the skills that would lead him into the world of entrepreneurship.
Igor Cornelsen, Advice for Investing
Mr. Cornelsen is comfortable speaking publicly about his views on investment strategies as well as other related topics, and he offers support and encouragement to managers who are new to these types of markets. His views on China and Brazil are favorable for investors who are looking for opportunities to participate in emerging markets. The differences in the investment environment in Brazil can make clients hesitate before proceeding with their activities in the country, and this is a critical area of focus for Mr. Cornelsen.
Igor is well-versed in the markets and currency exchange rate conditions of multiple countries, and he has a knack for sensing critical changes in the market in advance of other investors. This is a part of his competitive edge, but he also backs up his investment advice with a detailed analysis. This includes following through on his previous advice in regards to specific investments.
For example, he was adamant that the Euro would persist in the absence of another competitive currency with international recognition. After the recession that shook the European economy, his views seemed to hold. Over time, his views were validated by the returning stability of the Euro and its increase in strength relative to the US and British currencies.
His work in the financial sector includes strategies for investors who are interested in generating passive income. He remains confident that Brazil offers reliable investment opportunities in spite of the recession that occurred during 2016. The need to generate additional income is obvious to many people in his audience who have direct experience in working several jobs just to cover basic living expenses.
The concept of passive income appeals to this audience because it offers people a way to generate money regardless of their direct involvement in the activity. This also means that the investor will not have to work nonstop in order to maintain the stream of passive income. Setting up the investment can seem complicated to investors who are new to this area of the market, and this is where the advice of Igor Cornelsen really shines.
History as an Investor
Personal experience as an investor is essential for providing meaningful insights on the topic, according to Igor Cornelsen. He combines his expertise as a researcher with meaningful activities that prove his theories in the real market. By taking his own investment advice, he is able to speak credibly to audiences that do not have his education or expertise in the financial sector. One of the main areas of focus for his clients is the source of the investment advice.
According to Mr. Cornelsen, the quality of the investment information is as critical as any other factor. If data relating to economic activity is coming from a source that lacks credibility, mistakes can easily be made. The available literature can be difficult to parse for new investors who are bombarded with data and other economic information from a variety of sources. One of the key investment strategies he speaks about relates to the way this information is obtained and analyzed.
Education and Training
Igor Cornelsen was originally interested in the field of engineering, and his acceptance into the Federal University of Parana’s competitive engineering program represented a major achievement. After completing his education in 1970, he accepted an offer to work as an investment banker in Rio de Janeiro. Only four years later, he was rewarded for his hard work and dedication with a position as the bank’s newly appointed CEO.
During a seven-year period, he served with distinction on the board of directors for the Standard Chartered Merchant Bank in Brazil. His work as an investment manager gave him the experiences that would later become invaluable as he started his own firm. He accomplished this goal using the insights that come only from daily exposure to the same issues that concern investors.
Brazilian Investment Opportunities Continue To Attract Foreign Investors
Some investors believe Brazil is still a jungle-driven country that is three steps behind the United States. In terms of GDP growth that may be true. But in terms of available natural resources, offshore oil fields, and major ethanol and agricultural production, Brazil puts the United States to shame. One of the positive things about investing in United States assets is the nation’s political system. But that system has become a target for countries around the world, and those countries are moving on without America acting like the world’s maestro. More countries want to partner with Brazil. The U.K. has a pending multilateral trade agreement on the table once Brexit becomes law.
One country reaping the rewards of the decision to change the global economic playing field is Brazil. The recent tariffs that impact China are changing the way emerging markets do business. Rather than looking to the United States for relief, the Chinese are renegotiating deals with Brazil. Brazil soybean and corn exports are up, and they will continue to go to up at the United States expense. Many investors are jumping into Brazilian agriculture Exchange-Traded-Funds because of the tariffs.
Brazil’s BRICS partnership with Russia, India, South Africa, and China is another avenue investors should explore. Russia sold Brazil a new over-the-shoulder missile system in 2017. And Russia buys 41 percent of the beef Brazil exports. Some investors think now is the time to invest in a Brazilian commodity-EFT.
Brazil’s largest oil company is shaking all the corruption out of its DNA, and the country is getting its economic mojo back. Some investors say Brazilian bank stocks are solid investments because Brazil’s economy is positive again. Bank stocks like Itaú Unibanco and Banco Bradesco make money in good economic times and in bad. They make money when the country is in political turmoil. And they make more money when Brazil has its socially, politically, and economically act together. The 2018 presidential election will give investors a lot of answers in terms of future investments.
Some investors like the real estate market in Brazil. There are real estate opportunities all over Brazil, but investors usually need a Brazilian partner in order to buy property or operate a business. But that’s not a hard process if investors do the research.
The Russians, Chinese and other foreign investors like Brazil’s tech startup industry. Tech Investors like investing in Brazilian startups because Brazil is a much more investor-friendly place. If foreign investors learn and understand Brazil’s governmental idiosyncrasies, and the social and work mentality of the people who live there, investing in several sectors of the Brazilian economy could reap serious rewards down the road.
Brazil’s automobile industry is another investment opportunity, according to investors who like Brazilian automobile parts and workmanship. Brazilian banks dropped interest rates in 2018, so more Brazilians are buying automobiles. And more Brazilian tech companies are working on the technical aspects of Brazilian self-driving automobiles.
Most investors forget Brazil has the 7th largest economy in the world. And the country has a population of more than 180 million people. Plus, the country has a more than one-percent population growth rate. The consumer industry in Brazil is another sector investment opportunity, may want a piece of.
The investors who like airline industry investments like Embracer the jet manufacturer, and food and beverage investors like Ambev, the country’s biggest beverage maker, as well as Brazil Foods. The investors who know mining metals and iron-ore are a Brazilian specialty invest in the multinational corporation called Vale. Vale is one of Brazil’s largest logistics corporation.
When most people think of Brazil, they think of Rio and white sand beaches, or they think of the Amazon, and the people who still live like they did hundreds of years ago. Other people talk about the South of Brazil. They talk about cities like Novo Hamburgo, Porto Alegre, and Gramado, the small village surrounded by the black Forest pines of lake Negro. People like to talk about the largest country in Latin America, and how political corruption and poor fiscal planning sent Brazil into the worst recession in more than 100 years. Foreign investors didn’t walk away from Brazil’s assets when the recession hit in 2014, they ran away. But some investors stayed. Most of those investors were citizens of Brazil. They knew Brazil’s economic motor needed work, and they also knew where the opportunities were as the economy continued to deflate in 2015 and 2016. One of those investors, Igor Cornelsen, never gave up on his birth country. Igor has a successful track record when it comes to helping people find the right assets in his homeland.
When former President Dilma Rousseff, a loyal servant of former President Lulu, left office, Cornelsen knew the new president, Michel Temer, would have an impact on Brazil’s economy. Mr. Cornelsen knows Brazil’s economic history thanks working in Brazil’s banking industry for more than 30 years. Cornelsen is an expert when it comes to understanding how banks make money in good as well as bad economic times. Igor rose through the banking ranks, and he landed on top of the Brazilian banking food chain. He was a banker with a keen investment eye while he was part of that industry, and his ability to make rational decisions quickly enhanced his reputation as a knowledgeable as well as pragmatic investor.
In order to understand how Mr. Cornelsen got his reputation in the banking and investment industry, it’s important to know more about his life, and how he got started in the banking industry. Igor grew up in Curitiba, Brazil. His October 4, 1947 birthday gave him the more than a Libra Zodiac sign. 1947 was the year Dilma Rousseff came into the world, and Brazilian novelist Paulo Coelho birthday is August 1947. And 1947 was the year Brazil’s Socialist Party became a movement. In 1965, Igor decided to go to engineering school. The Federal University of Parana was the only engineering school available in the 1960s, but after two years of engineering courses, Igor decided to study economics. He didn’t leave The Federal University of Parana, he just changed his major.
In 1970, Cornelsen got a job with an investment bank. His engineering background came in handy especially when it was time to calculate compound interest rates. Igor did those calculations on a sliding ruler because computers and calculators weren’t around in those days. Igor was good at calculating interest rates. He eventually became the guy other people went to when they needed help. It didn’t take long for other bankers to see his potential, so he got a job in Rio as an investment banker. In 1974, Igor became a member of the Board of Directors of Multibanco, and in 1976, he became the Chief Executive Officer of that bank.
In 1978, Bank of America acquired Multibanco, and that put Igor in a strange position. He didn’t want to leave the bank, but after weighing the positive and negations of the acquisition, he decided to find another bank to manage. It didn’t take long for Cornelsen to join Unibanco as an investment specialist. Unibanco was a major investment firm during the 1970s and 1980s. But when inflation reared its ugly head in 1985, Cornelsen decided to work for Libra Bank. Libra Bank was part of the London Merchant Bank in those days. Libra Bank paid Cornelsen in U.S. Dollars, and that opened the door for some exciting investment opportunities. Igor decided to move to London to continue his streak of investment success. The London Merchant Bank became the Standard Chartered Merchant Bank shortly after his move to London. Igor became a board member, and he was also the bank’s representative in Brazil. Cornelsen continued to help the London-based bank do business in Brazil until he decided to open his own investment firm in 1995. By that time, Igor was in demand as an investment banker. His astute mind and sharp insight gave him the ability to pick assets other investors in Brazil missed. His investment fund grew quickly thanks to his uncanny knowledge of the stock market.
In 2010, Igor sold all his Brazilian assets and moved to Florida. He wanted to play golf and do a little investing on the side. Igor thought he was ready to put all his investment years behind him, but his former clients had other ideas. The investors who knew what Igor was capable of doing in the investment world wanted him to open a small boutique investment firm in Boca Raton, Florida. And after doing a little soul searching and investment research, Igor started Bainbridge Investments.
Mr. Cornelsen is still helping people invest in Brazilian assets. His investment strategy changed over the years, but his knack for picking the right investments is still one of his strongest business qualities. Igor likes to tell people investing is risky, and a hard thing to be consistently good at. But if young investors know the rules and understand how different investment vehicles work they will make money. And, according to Cornelsen, investing is all about making, not losing money.
Another point that Igor stresses when young investors come to him with money to invest is timing. Investors have to know when to get in and then get out of an asset at the right time. Cornelsen tells his clients the right timing depends on the right information, and that’s where his experience comes into play. Young investors need an advisor, especially if they want to make money in the Brazilian investment market. Igor tells his clients that diversification is a key element in investment success.
According to Mr. Cornelsen, there are several things that make Brazil the perfect place to invest. The recently discovered oil fields off the Brazilian coastline is bringing a lot of foreign investors back to Brazil. And those oil fields are creating other jobs in cities along the coastline. Brazil is one of the world’s largest exporters of iron ore, and that’s an essential ingredient in the steel market. President Trump’s recent traffic threat on foreign steel and aluminum is threatening investors who have iron ore assets. But Mr. Cornelsen thinks the Trump tariff situation is a short- term inconvenience rather than a permanent threat. Cornelsen also likes to take about the agriculture sector of Brazil’s economy. Brazil exports more agriculture products than the U.S. thanks to the technological farming trend.
Mr. Cornelsen believes now is a great time to invest in Brazilian assets for a number of reasons. China, Iran, and the United Kingdom are investing in Brazil assets now that the recession is over. And the government’s plan to invest in infrastructure is giving foreign investors the green light to join the infrastructure initiative. Plus, Cornelsen thinks the low-interest rates will stay around, and the unemployment rate in Brazil will continue to be the lowest in South America. Another point that Cornelsen likes to talk about with investors is the social movement that is taking place in Brazil. Brazil finally has a middle class, and that means more people are buying homes and cars. Brazilians are making more money, and they are spending it. So when the demand goes up, supply follows. Investors should be there to enjoy the benefits of this new thriving economic overhaul, according to Mr. Cornelsen.
The other important economic sector in Brazil is tourism. Tourism took a nosedive in 2014, and it didn’t start to recover until 2016. Crime is still an issue in the big cities. Rio and Sao Paulo are havens for street criminals, but the government is cracking down on crime. Investors have unlimited investment opportunities, especially in the tourist industry.
At 70-years-old, Igor Cornelsen is still going strong especially in the investment world and on the golf courses in Florida. Igor can still identify the trends that make investor’s money. And he still relies on publications like Reuters to cut through all the hype that follows investment market. Investors like Cornelsen never stop looking for new Brazilian startups or new technology advancements that change the dynamics of certain industries. Cornelsen, like other top investment advisors, never stops learning. He keeps looking for that one investment that can turn into an Apple or an Uber.
Igor Cornelsen on Coronavirus
But Igor Cornelsen does encourage caution going into 2021. The uncertain future of world economies can’t be denied as the Coronavirus pandemic rages on. Brazil hasn’t handled the pandemic very well so far, and we don’t even know if the world will normalize until 2022 when we finally have an effective vaccine.
But if you have to get into the markets, Igor says to watch companies that have not required social distancing. These are the companies that are thriving. The services like Amazon which have taken the place of normal retail stores. These are the companies to watch, because they don’t face the same limitations as local stores and their businesses have not been interrupted. Steer clear of anything that has to limit capacity or production to comply with social distancing guidelines. It’s going to be a long time before those industries recover.
