- Most Latin American companies have historically been attractive during particular cyclical periods similar to today, of rising commodity prices.
- As a Latin American case study, Colombia offers two exceptionally high quality and extremely cheap financial conglomerates trading at 6x-7x normalized earnings in Grupo Aval and Grupo Sura.
- Discounts in those stocks likely exist not only from economic uncertainty but worries about the political direction of the country.
- Those concerns, while not invalid, appear to be pricing in the absolute worst-case scenario for the economic and political future of the county.
- While investors need to deeply understand countries and individual companies to make sound investments, discerning investors can find bargains throughout Latin America today.
For further details see:
Grupo Aval And Grupo Sura: Valuations Currently More Than Compensate For Political Risk