Argentina Has Great Businesses – ADR stock list

Argentina Has Great Businesses – ADR stock list
  • Great investment returns come from buying things nobody wants to touch with a ten foot pole.
  • Argentina might be such a case.
  • The MSCI Argentina ETF is definitely not the way to get exposure to the Argentinian bargains.

A look at the Argentinian stocks traded on the NYSE shows how there are good businesses there.

Play Quizzes 4

Figure 1 Argentinian stocks traded on American exchanges

Morningstar Investment Conference: What To Do During The Fed Rate Hiking Cycle

Federal reserveThe U.S. Federal Reserve is treading carefully with raising rates amid the widespread economic, macro and geopolitical uncertainties sweeping around the world. The Fed raised its target level as high as 20% in the early 1980s to deal with runaway inflation, but we're a far cry from that today — a time when inflation threatens Read More

argentina stocks

Source: Author’s data

Most companies are directly related to the Argentinian economy which has recently been re-categorized as an emerging market. That is the first sign of a possible rebirth. However, Argentina still has lot’s of issues like political risk, currency problems and economic stagnation. But, to reach great investment returns it is better to buy when there is blood on the streets. I think that there is still plenty of blood on the streets to offer positive asymmetric risk reward investing opportunities.

Nevertheless, investing in Argentina is not an easy straightforward process. A look at the holdings of the iShares MSCI Argentina ETF (AGT) shows how Mercadolibre (MELI) makes 24% of the index while Tenaris (TS) 17%. The two companies, the first a LATAM growth promise story and the second a global steel pipe maker, are certainly not the way to Invest in Argentina. An investor can get much better exposure by carefully selecting specific stocks with lower valuations, better book values and revenues actually coming from Argentina.

Enjoy the video where we give a quick overview on 10 stocks that might give you some research and investing ideas.

Updated on

No posts to display