Brazil Value Talks: Nilson Sato (Consultor CVM)

Today I have the pleasure of interviewing Brazilian investor Nilson Sato.

From June 2019 to April 2024 his historic performance will be the envy of anyone.

His portfolio returned 493.00% in the period, versus 30.89% for Ibovespa.

This guy knows how to generate real value.

Shall we meet him?

BZ: Sato, could you tell us a little about yourself?

NS: Well, my name is Nilson. I have a degree in Economics; I worked at a few private companies and later pursued civil service exams in my field. I worked at Caixa (CEF), but eventually settled into a role as an economist at the Federal Public Defender’s Office, managing assets. My interest in the stock market was sparked even before college, when I read *The Intelligent Investor*, the classic by Benjamin Graham.

At the time, I thought, “This is it!” That book was a real “aha!” moment for me—the equivalent of the “mind-blown” emoji, haha. However, I was a student back then and didn’t have any money. I remember the 2008 subprime crisis like it was yesterday: stocks were dirt cheap, but I didn’t have the cash to invest.

Later, I focused more on my job and built up decent savings to invest in publicly traded companies. That’s when the capital multiplication process began. At first, I moved slowly with the help of an investment research firm, but eventually, I concentrated all my savings into two companies I believed were at the bottom of the Brazilian construction cycle: JHSF and Trisul. (The construction sector’s GDP had been falling for years, but a macroeconomic shift seemed to be underway in Brazil with the new government and economic agenda—specifically, falling interest rates and rising incomes on the horizon.) I didn’t hesitate. I wanted to multiply my capital quickly, and since I had the security of a public sector job, concentrating my investments made sense at the time. It worked out very well, but then the pandemic hit and changed a lot of things.

I studied and learned like never before during that period: I read dozens of books, took investment courses, and pored over countless corporate financial statements. I emerged in a better financial position, having made a lot of money with Taurus—a company that experienced an incredibly successful cycle; the stars really aligned for them. After multiplying my capital several times over, I planned a career transition; I obtained the CNPI fundamental analysis certification (which involved further study) in late 2023, and today I work independently—helping other investors as a consultant and independent analyst (and am open to partnerships)—applying a more balanced perspective based on what I have learned.

BZ: What is your strategy for making money on the stock market?