1Settimana·

Acquisition of Itaú Unibanco

I’m in the process of increasing my small positions in my portfolio to minimum sizes. Today I bought more shares of Itau Unibanco and hope to bring the position up to my target size by the end of next month.

Itau Unibanco is the largest financial institution in South America and one of the most profitable major banks worldwide. The company is the market leader in Brazil, with a historically strong track record of profitability and a very attractive dividend policy. In addition to its traditional lending business, Itaú is Brazil’s second-largest asset manager and one of the country’s leading insurers. Its home market is Brazil, but the company also operates in Argentina, Chile, Colombia, Paraguay, and Uruguay. Of course, the bank is heavily dependent on the macroeconomic environment in Latin America—an investment therefore offers opportunities but also carries the typical emerging market risks.

For me, this position is an exotic addition to an otherwise rather boring portfolio.

Financial data on the company ( $ITUB4 ):

Market capitalization: approx. 95.7 billion USD

P/E ratio (price-to-earnings ratio): approx. 10.2

ROE (return on equity): approx. 24%

Dividend yield: approx. 6–7% (plus special dividends, if applicable)

(Graph generated with Lovart.ai, modified in Photoshop)

02.10

Itau Unibanco Holding Pref Shs

Acquistato x135 a 7,60 €

1026,00 €

4 Commenti

Smudo@Smudeo

1Settimana

Your largest holding is a fund with an annual expense ratio of 1.6%?
Why are you holding onto it so tenaciously?

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NichtRelevant@NichtRelevant

1Settimana

@Smudeo The Fürstlich Castell'sche Bank fund 😉. I could say that I always get a bottle from the Fürstliches Weingut for Christmas—that would really stir things up here on the forum... 😅

No. Here’s the background: I follow a multi-bank strategy, and within this setup, Castell Bank is my primary bank for all eventualities. When I need financing for my real estate, I have a direct line to them, and decisions can be made very quickly and easily. Even if I need something specific—collateral swaps, raising capital through unencumbered land registry entries, etc.—I have someone there who will listen and go along with it. That’s only possible with small banks and short decision-making chains. Branch and direct banks, on the other hand, just follow templates and issue rejections very quickly as soon as things get more complicated.
The fund isn’t strictly necessary, but it “keeps the friendship alive” and fosters a positive atmosphere in the business relationship. The TER is high, but the benefits of a business relationship that has grown over 20 years are more important than these costs.

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Smudo@Smudeo

1Settimana

@NichtRelevant I agree with you

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NichtRelevant@NichtRelevant

1Settimana

I just realized—I linked/entered that wrong 😅. I have the ADRs $ITUB, not $ITUB4. I need to correct that, otherwise the prices will be way off.

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