Brazilian Buffett – All-You-Can-Deplete

“Brazilian magazine EXAME reports that America’s favorite investor is headed to Brazil. According to the report, Warren Buffett, the world’s third richest man, and his famed investment vehicle, Berkshire Hathaway, are interested in buying up land in the Amazon and are negotiating starting an acquisition company in Brazil specifically for this purpose. Apparently Berkshire execs were visiting Brazil about a month ago checking out the area.

If this is true (Buffett’s camp has not confirmed with us yet), Buffett is, as he tends to be, on point. Just this week The Economist featured an excellent report on “the miracle of the Cerrado” saying that the rest of the world should take notes on how Brazil is revolutionizing farming.” – Source (secondary article here)

My Take

Are all those Brazilian tall-tales of how Americans think they own the Amazon coming to fruition? Yes, if you consider Buffett an American. I think he’s more of an internationalist just like all the other billionaires since their bottom lines aren’t confined to borders but rather to profit-margins. If Buffett is seemingly thought ‘smart’ for considering such a spending spree, I think Brazil should be smart and tell him to bugger off. Then again, let’s not delude ourselves, the Brazilian Amazon doesn’t belong to the Brazilian people (even though it could be successfully argued that it should). It belongs to the ones who currently control it, the Brazilian government.

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4 thoughts on “Brazilian Buffett – All-You-Can-Deplete

  1. The Amazon and Cerrado are different regions.

    http://www.brazilintl.com/agland/cerrado/aboutcerrado.htm

    I seriously doubt that Buffet is considering buying land in the “Amazon”, but rather in the Cerrado.

    The Brazilian Government recently issued new guidelines for the purchase of land by foreigners based on a 1971 law. Although some aspects of the guidelines are not clear, it is a good bet that foreigners are going to find it difficult to purchase large tracts of land anywhere in Brazil much less in the Amazon.

    We will have to keep an “Eyes On The Jeitinho” to see how this new land law plays out.

    • Buffett just needs a despachante. Hopefully the law doesn’t prohibit one from buying a small house by the sea. I’ve been trying to track down my CPF number which I lost but the Receita isn’t much help so it seems I’ll have to deal with it on my next trip.

  2. This is like the game of ‘telephone’.
    Your linked source is the Forbes.com blog.

    Forbes’ source (as you credit) is Exame. http://portalexame.abril.com.br/negocios/noticias/warren-buffet-compra-terras-brasileiras-593029.html

    Exame’s source is RelatorioReservado.
    http://www.relatorioreservado.com.br/arquivo/2010/pdfs/rr3952.pdf

    Just how good are the sources (or more accurately, source)? And what’s this source referring to about hoping to attract other investors?

    Meanwhile, Warren’s son Howard (through Howard’s charity that Warren funded) recently provided an award to a Brazilian couple who was buying up threatened land in Brazil for preservation.
    http://blogs.nationalgeographic.com/blogs/news/chiefeditor/2010/06/national-geographic-buffett-award-2010.html

    This all doesn’t make any sense. Warren Buffett sending people down to Brazil to buy land at the same time his son Howard is recognizing some Brazilians for buying land in Brazil for preservation?

    You imply that you requested confirmation from Warren Buffett on this (you know of course he doesn’t comment on purported investments one way or another). But what does Howard say?

    • Hi Michael

      You might want to direct your question to Forbes blog author. When you write “you imply that you requested…”, it was the Forbes author that implied said request. Part of what I do on my blog is to post news on Brazil from sources that are generally thought of as reputable. Your questions, though, are valid and they warrant a further study. Thank you for your thoughts.

      Adam

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