 Good day fellow investors. Investing is about constantly looking for opportunities, researching stock markets, researching stocks, creating models, creating lists, comparing those lists and then finding the best handful of investments that fit common sense investing, value investing, a lot of criteria and that have a great risk-reward perspective so that they lead to long-term sustainable returns no matter what happens in the world. And one of those things that I constantly do is research stock markets and today I will share my and my interns David Mostl's preliminary research on Chile and the Chilean stock market. I have seen some declines there so I wanted to dig into the market to see what's going on if there are any opportunities. Let's go. Let's start with so this is the table of contents you can read this on my blog if you prefer Chile then the company is the overview and then of course the conclusion. Let's dig into it. So the overview Chile is the most Chile I don't know how to say Chile is the most developed country in Latin America and the GDP growth has been nice and stable 4 percent above 4 percent last year the debt to GDP is an extremely low levels below 25 percent so in your face develop big countries the population is expected to grow slowly but surely over the next 30 years one a little around 1% per year so no big growth but okay the currency has been extremely stable towards the dollar and traded in line with the dollar's own strength the blue line is Chile USD dollar exchange rate and then the trade weighted US dollar index is of course green. Let's look at the ETF when I see an ETF at price earnings ratio of 19.50 on an let's say emerging market even with great stability price to book value 1.83 trailing yield 2.10 percent and not that great metrics for an average general investment in Chile so let's look at the components these are the stocks traded on the new york stock exchange except for viña concha de hitoro which has been delisted but it's trading over the counter oh no oh compañía de serveiras unidas I know I said those that wrongly but what can I say I cannot pronounce Spanish it's a company which operates in the beverage business they sell beer non-encoupled drinks and it's a stable company there hasn't been big growth over the past and they are looking for different investments to scale those growth and scales what they're doing so a stable company that will grow slowly but probably surely it bottles own brands but also has licenses for high neck and a b nestle pepsi and dr peper these are the investment criterias for their organic growth so high potential profitability scaling operations keep developing multi category proprietary brands and a competitive balance they're owned by high neck and 50 quienco another company local managers local stock market and new york stock exchange they focused on growth 2002 2007 the growth in sales was good extremely good 11 percent per year and 12.5 net income growth so if they can keep up with that then it's a very interesting story but I don't know if they will be able to keep up with that because the last few years haven't been that great especially as consumption growth also isn't growing that fast we'll see how that goes also you can see here that the earnings per share didn't grow over the last seven years so the yearly growth is from a very low base in 2002 so I can also show great numbers from 2002 another bottling company aquio let's say so they are bottled they bottle for coca cola soft drink juices mineral water and normal water so 30% revenue in Chile 32% in Brazil 30% in Argentina and 8% in Paraguay as there has been some turmoil in the markets they have been hit but still the revenues have been stable slowly growing 5% volumes not growing that fast so revenue goes better than volumes net debt to EBITDA is 1.4% 2.3% very low also looking for inorganic growth 3.3% dividend yield and a payout ratio of 69 so price earnings ratio of 17 too much for me I prefer to find such companies at 8 9 10 price earnings ratio and then we can discuss vina concha del toro is a very interesting company produces wine the growth has been very very good in some sectors the margins have been improving the stock has doubled I remember looking at this stock when it was a 20 now I think it's at 40 but again it has a price earnings ratio of 20 trying to expand margins so it might do even better in the future but I'm not a specialist on the wine industry don't know how will that go Banco de Chile is a high profitable and strong private bank in Chile very stable it provides a complete range of financial services to corporations diversified business model retail wholesale solid competitive position almost the leader in every segment in Chile it's fairly priced price earnings ratio of those banks are around 17 similarly Banco Santa there the Chile they are growing a bit faster in comparison to other banks so who knows what they are doing are they risking more or not I didn't dig deeper because again the price earnings ratio is around 17 so the dividends are high there but not enough for me and then we come to something interested similarly tau corp banca then we come to something interested in Latin America all these energy utilities are always cheaper than anything else you look at so that's very interesting and that's why I focus on the utility sector there especially as there are some very special situations where they get paid in dollars and they're priced at the country's risk and they are priced at the currency's risk I have given a quick look for now at EOCC another generation utility in Chile that has fallen significantly in the last few months the stock is down I think 33% they have growth in plan they hope to grow EBITDA over the next few years not much but significantly that will increase the dividends as they lower the capex from the investments stock is traded at the price earnings ratio of 10 and here we come as I mentioned the dividends I forgot to say it before there is a dividend tax withholding tax between 18 and 35% there in Chile so you have to see with your broker what you will be taxed on those dividends so don't get excited about those high dividends or discount them by the 35% possible tax rate so there will be growth renewables they are doing a good job Chile is a stable company especially if copper goes up then all this will do very very well similarly NRCS price earnings ratio of 11 but they have more things around Brazil Argentina Peru Colombia so another company to look into I will do special models and I will see what I found about these electrical companies the dividend payouts are significant there is the potential to really increase the dividend so long-term dividend investments seekers might look at those Latin American utilities geopark is an oil company they drill for oil in South America they have really been growing their production expect to grow their production even more and we are making a model on this company to see okay is it a good oil investment and I will also discuss where how I how I see investing in oil and when I see investing in oil I'm very patient and I have a long-term attitude to that so when it comes to the video of this company we will also discuss the oil prices another interesting company is Latin Airlines group we would have to compare all the Latin American airlines to see whether there is some potential to invest here they have a lot of that which is not that good especially if something happens but the demand for passenger flights increased across the country SQM is fertilizer's lithium I remember looking at it at 16 I didn't see the lithium boom coming so I missed on that as for the long-term lithium there is as we have seen in the Norils Canalysis there is a lot of that about sentiment and there isn't that much demand from the market yet so we can wait to see whether the trend will be there and how to best play that there is still time let's just wait for the sentiment to cool off price on insurance is already high at 28 in this part of the cycle I don't know I I really don't know there conclusion banking sector difficult to see through understanding the companies depending on an economic growth increasing loans as always I'm not very attractive to banking beverage sectors solid businesses stable businesses but there is always the question of the price utilities to look into gpr car to look into airlines many risk cyclical depending on oil prices etc as QM lithium of course important fertilizer depending again on the price other companies in Chile that are traded only in Chile from the ETF copac falabella cpmc sencosud only sencosud has 11.6 others have 23 26 and 23 so a relatively as expensive to invest in Chile you won't get a valuation advantage there so this is what I do I constantly look at markets if you want to get all what I do for a price of 68 cents per day so yes you get me with 15 years of experience a phd to practically work for you and give you ideas do research for you explain things for you comment with you on investments for just 68 cents a day please check my stock market research platform subscribe to the channel as there are a few more Chilean stocks that are coming up in videos but also china and all emerging markets value whatever to help you with your investing needs success and to really clear out the complex things and focus on the common sense investing values that lead to great returns thank you and I'll see you in the next video