The muse of the blog and its favorite fruit (which I have no idea what it is).
Well, I was here thinking, as the information I will always put when closing the monthly put here my monthly DY of the portfolio, I think this will be a good for those who invests in stocks know more or less how it goes. I’ve never seen anything like it on the internet and some people have no idea how it would look. It would be two DY:
DY of the contribution: In relation to the total money that I placed in the portfolio.
DY real: In relation to the total price of the portfolio on the last business day of the month.
Maybe they’re alike, maybe not. Since I lost the end of last month, I will do it now, and then every month I will compare the evolution of the DYs for historical purposes. As readers know, I have listed my equity in the dollar for Google finance, so I’ll see that at the close of the day.
Closing DY March 2016: Dollar 3.64 today (4/4/2016)
DY contribution: 0.26% (represents the fraction I received from all the money already invested)
real DY: 0.27% (represents the fraction that received the current value of the portfolio)
My portfolio is not so much dividend, it is moderate growth, so as you can see my DY is very low. I think this year I will contribute a little more to companies that pay more dividends and also increase my fixed income reserve. As I already said I’m finding this annoying DY to be so low, I know it does not mean much, but my portfolio only grows with contributions and is still giving few dividends. Let’s move on:
BBSE Annual Review (BBSE3)
It is a new company, IPO of 2012, the majority of Banco do Brasil (66%) [Federal Government]. It is a dismembered Bank of Brazil that the government sold part, there are now two separate companies. This company makes money selling the car, home, life, and other insurance for BB customers, that is, it already has a good base of clients and agencies to sell, being able to sell insurance through a cell phone, ATM, and the internet. The company is new, but it is very old inside BB, BB itself is more than 100 years old and has a lot of capillarity throughout Brazil. Put in your head that this company has state control like Petrobrás, Cemig, Vale, Banco does Brasil, Eletrobrás, and this will have its advantages and disadvantages (there are people who do not like and do not want to be a partner in the government).
It is a New Market company (you know what that means?) With tag along 100% ON and a free float of 35% (stocks available for purchase and sale in the market) and still excellent liquidity with thousands of businesses every day. This usually denotes a good company to be a partner and to buy shares without that clown of preferred PN shares or UNIT 11 that are junk. It has 37,415 individuals, a considerable number and high by bovespa standards.
Analyzing insurer and bank is a bit tricky, but you can compare them with your peers to measure efficiency, management, profitability, and so on. The biggest and best competitor of BB security is Porto Seguro, which I have already done the analysis here, in my part of insurers I placed half of the allocation in each. You can see that BB Seguros has a strong participation of other insurers such as Mapfre, Icatu Seguros, Prudential (that is American), Odontoprev (dental) and IRB Brasil (this is from the federal government and works more with RESEGUOS, ie, it is an insurance company Of the insurers (including the federal government is thinking of selling the IRB to make cash, which would be great for everyone, and so on, see:
So you see that it’s a heavyweight team that’s involved in all this. Odontoprev is another excellent company that I am also a partner. The others are not in the bovespa. Prudential’s on the NYSE.
The first year she has a swing was in 2013, come on.
Heritage 2012: 5.638 billion in 2015: 7581 billion
Net income: 2013: 2.474 billion, 2015: 4,207 billion
ROE of 55% to 1.5 billion in cash.
The insurance company has no debts, neither this nor the safe haven. This cash in the cashier is used to pay for the claims (car theft, life insurance, rural, lender, home, etc.). This company benefits a lot from BB because it has those customers who are already accustomed to buying insurance through BB for the ease and insistence of the manager (who has to sell and beat his goals) – I think the BB manager is a bankrupt (I do not know ) = Less efficient bank and employee. The manager of Itaú sells insurance from Porto Seguro and has to hit sinister sales targets every month, if not RUA, so Itaú MUCH MORE EFFICIENT than BB. And maybe Safe Harbor MUCH MORE EFFICIENT than BB SECURITY. The first sentence is a mathematical certainty, the second still needs to study better.
For me, the analysis of BBSE3 is very simple. There’s not much extra to talk about. The payout is 80%, so consider this company as dividends. The current PL is at 11 and the DY at 2.81%. See that to be a dividend company is not high DY but high payout. The DY can be very low even with 100% Payout. In 2014 and 2015 the dividends were semi-annual, paying in February and August. I like companies with PL lower than 15, without debt and with a high payout, CAGR is at 31%, which is excellent and very high, that is to say, that in the last 3 years, the average growth of the net profit is 31% PER YEAR.
Let’s go to the release (very cool by the way):
In this chart, we can see the growth potential of the sector (the Brazilian STILL does not do much insurance).
I hope this analysis has been helpful.
See that you benefit from sales of PGBL, VGBL, and even Ourocap.
I do not particularly like these 3 products but there are people I like.
Ourocap has lots of draws and if you put good money in it can even be drawn – For those who want to make a little faith in the automatic and please manager. (Much better than megasena apparently).
DPVAT is the monopoly and everyone pays.
I have separated these frames from the release so that you have a more general idea of the company. I am a partner and will continue to buy while she is good. I am away from PGBL and VGBL so these stock purchases are for my retirement.