Global Value Investing

[Drexion2004]

One reason for the high rates in Brazil is inflation. Brazil often sees inflation in the 5-6% range, so of course saving accounts/etc need to give more than that. Take out inflation and the difference between Brazil 'real rates' and that of other countries does shrink.

My accounts in Brazil are mainly for my relatives/friends living there. They live, work, spend in reals...so they have no interest in hedging their own currency. My uncle's business (speed-boats) benefits from a weaker Real for example (They can export to other Latin Aerican countries like Argentina if their costs go down from a weaker Real).

Good luck getting BDORY at $9.5, thats like at 0.85x Price/Book (chuckle). I'll give you a 90% chance of never buying into it at that price in the next year ;).

-Fernando