Jessica and her three-legged puppy.
Banco do Brasil was my first stock I bought there in the middle of 2013. It was also the first dividend I received and it was R $ 33.00 in dividends. And so I inserted myself into capitalism, in fact, being the owner of the fraction of something productive in my life, besides my manual labor. I’ve wasted 27 years of my life away from the financial market and now I’m making up for lost time. I say that there are only 3 banks to be a client or partner in Brazil: BB, Itaú, and Bradesco.
I only have Itaú and Banco do Brasil, and I have been an accountant of BB since I entered college at age 18 and entered the wonderful world of a check with my super limit of 200 reais (this in 2003). People condemn the overdraft and etc but only know who needs it, who helped me MANY INFINITE TIMES in my life college trash was the SPECIAL CHECK. I think I spent about 10-15 days in the red every month, this to live paying the basics even because I did not have the money nor the basics at the time (food, transportation, rent) I survived hard at that time, only knows who Pass, buy things at the supermarket, deliver the card to the box and do not know if the purchase will be OK or NOT. So BB was the one who opened the doors to the banking world, cards, credit and so on.
As a customer, I am very satisfied, despite paying $ 76 monthly in the Style account and having a Platinum Mouth Card half that does not even gather so many miles like that. The point is that I make so many TEDs that it is impracticable to have a digital account or another one with a cheaper package. I am a fast servant at the agency and I always have free parking and drink water and coffee in the bank (people who live in the north of Brazil arrive with headquarters wherever they go because only the walk from the parking lot to you arrives sweaty and thirsty ).
Banco do Brasil was founded more than a hundred years ago, I think Pedro II is not sure, in fact, was one of the first publicly traded companies in Brazil and has already broken a few times as a public company when it comes to breaking the government Injects money and dilutes shareholders, is horrible. Lately because of the risk and politics of the PT gang the bank suffered a lot, the action was very cheap and discredited but it has recovered, when they remove the infernal squall of power the action can go up more (I am not much fan of these things of News and quotation because the market is not exact science), even so, even in crisis the bank did not become operationally bad, although if you compare with Itaú BB is much less efficient and less profitable.
When I started in the stock market I made some big contributions in BB, it’s been almost a year since I bought it because I accumulated a lot in it, I saw the quote drop a lot and then I climbed a lot, but I waited and did not sell anything and I regretted not buying MORE . Today 40% of the dividends I earned came from BB, that percentage will decrease with time, BB and EZTEC now account for almost 25% of my portfolio, it’s a lot of concentration in just two shares, but when I go contributing More in others this will fall.
Let’s go to the analysis:
BBAS3 is the only major bank in the New Market, tag along 100% ON, the main partner is the federal government with 50.26% of the shares, 331,859 members of physical persons (large number!), Is a company that distributed 40% of Profit in the last 03 years but now due to the crisis will lower to 25% and make cash reserve for the payers who will not pay.
For fundamentalists: it has a PL of less than 5, a DY of 9% (with a tendency to lower), a VPA of 24.66 and the quotation is at R $ 20.71 today.
In fact, it is difficult to analyze bank, it is not like a joint venture. BB is not just a bank, it’s a holding company, so you have to analyze how Holding, a holding company is a group of companies with a common controller, it’s like you have a bakery, a butcher, a gas station, A pharmacy, a taxi fleet and a logging company, all in your name and within the same company, even though there are several different companies each, but the result of each goes to the overall result of your company, which would be the holding company. Then at the end of the month, you will add up the profits and losses of each one to know how you stayed, with BB being the same thing. BB has a stake in its own insurance company (BB 66%), it has a stake in Cielo, among other things, it does not stand still, banks are always acquiring companies or other banks, see BB’s latest acquisitions:
This year I will put the institutional here, then I will do a more summary analysis:
Brazil is the largest exporter of commodities in the world and BB is the main partner of Agribusiness in Brazil, so the two things are tied together.
Now, let’s go to the 2015 analysis, to tell you the truth 7 years ago that BB’s non-recurring net income is stagnant, this is STRICTLY for the partner because the bank can not increase its profitability, as we can see below. The hope is for the federal government to get out of the hands of the PT squad for this to walk, or not … you never know if your neighbor is going to be worse. The increase in net profit is what matters most to the minority partner, me and you, the analysis and the post could just be that picture below and you’re done, you’re coming back here next year, it’s just that and nothing more.
Basically, that’s it, there are 7 years of net profit stagnation, multiple lows (due to this) – there is no free lunch in the market. Not an exciting action, nor top of the pyramid. I do not know if I’ll buy more. I will wait for the results of 2016. But I also do not need to sell because of this, you can wait. Investing in stocks does not mean that you need to make daily decisions or “do something,” the good thing is, for now, nothing needs to be done.