Fernando Lelo de Larrea: 5 things Warren Buffett likes to invest in Latin America

MIAMI, FLORIDA, ESTADOS UNIDOS, October 13, 2022 /EINPresswire.com/ -- If you have followed the world's leading investors and their interests over the past decade, you will know that a growing number of them are paying more attention to emerging markets than ever before. This is because they see opportunities for growth, expansion, and diversification in these geographies, to the point where some analysts believe that investment in emerging markets will soon overtake investment in developed countries as the world's leading source of capital.

For the time being, however, many emerging markets are considered difficult places to invest. This is because their economies have struggled to develop at a rapid pace due to a variety of factors, such as weak government regulation, widespread corruption, currency instability, high levels of public debt, and economic uncertainty caused by political instability or natural disasters. In other words: Compared to developed markets, such as the United States or Europe, where investors can rely on the stability of laws and macroeconomic conditions as safeguards against financial risks and earnings fluctuations due to external forces beyond their control.

What hinders investment in emerging markets?
It is not just volatile economies and uncertain macroeconomic environments that are problematic in emerging markets. In fact, it is the same issues that affect developed markets that also pose major challenges. A prime example: is investors' relative lack of knowledge about sectors and companies in these countries.
"If you want to invest in emerging markets, but you don't understand their economies and companies, how can you identify opportunities and make successful investments?" comments Fernando Lelo de Larrea, investment expert.
Investing in emerging markets is a big challenge because there are so many of these geographies. This means that you have to narrow your focus to focus on the best opportunities. But narrowing the focus is difficult because there are so many geographies to choose from. That makes it hard to find the best investments.

Some things that make emerging markets attractive
Like developed markets, emerging markets are experiencing a lot of interest from investors around the world. However, what is particularly notable is that this interest is coming from investors who have traditionally avoided these markets. This is because emerging markets are undergoing many changes at the moment and these changes are producing attractive investment opportunities. As these changes continue, investors will have more opportunities to find profitable investments, many of which they may never have considered before. For example, emerging markets are moving toward a digital economy.

"This means that certain sectors, such as insurance, are rapidly going digital," says Fernando Lelo de Larrea.
Indeed, emerging markets are now home to many of the largest digital companies. This is creating new investment opportunities in insurance and technology-based industries.

Warren Buffett's five favorite things about Latin America
In 2015, Warren Buffett made headlines when he said that investment in emerging markets could soon surpass investment in developed markets. This was likely due to the growing number of prominent investors now investing in emerging markets. Investors such as Bill Gates, David Geffen, and George Soros have recently made significant investments in countries such as India, China, and Brazil, among others. What all these investors have in common is that they are interested in more than just the growth potential of these markets. They are also interested in the opportunities that can be found in Latin America because of its low levels of corruption, strong currencies, and strong growth rates. Investing in emerging markets is difficult, but doing so when they are cheap can provide investors with great returns. In fact, many emerging market investments today trade at discounts of around 10%-20% relative to their potential. Investing in these markets can provide investors with a reasonable return, even if there is the possibility of losing some money.

Conclusion
The attractiveness of investing in emerging markets has increased in recent years due to the changing environment in these markets. While many of these geographies are experiencing a boom in growth, many are also experiencing some degree of political instability or natural disaster that is preventing their currencies from rising to their full potential. Investors who navigate these challenges will be rewarded with attractive returns. However, these geographies are difficult to manage. Investing in these markets requires knowledge of their economies and industries. It also requires understanding the risks posed by these geographies. Investing in emerging markets is a difficult proposition. It is also exciting.

Mia Atkinson
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