Investing... What Colombia Expats Like

cccmedia Ecuador/Colombia Expert

10285POSTS

5 years ago

On an 大咖福利影院 thread about Medellin/cost of living .. the OP, Liber87 from Hungary currently living in France, asked about investments.

Liber is eager to invest in Colombia although he seemed uncertain about which direction(s) to go.聽 He mentioned investing in coffee as a possibility.

I thought the investment topic too juicy to continue that conversation on that 'cost of living' thread .. given that a thread with Investing in the title seems more likely to receive investors' attention.

Ipso facto, I offer this new thread.

----

When the pandemic smacked most of the world's countries in March 2020, I did something I had not done in years -- I started selling my stocks.聽 In about an hour, I had sold most of my holdings.

I kept my pot stocks, my bonds and a few other issues.聽 I then sat mostly in cash through 2020 and early 2021.

----

Fast forward to this past week.聽 Over several days, using limit orders, I put almost all of the cash to work and bought stocks.

Especially in the USA, with covid vaccinations and vaccine supplies now widespread, with an informed president established in office, with travel opening up around the globe and an international rebound poised to occur .. I feel it's an optimal time to be re-invested in markets.

However, I did not invest in individual travel or pharmaceutical-company stocks.聽 Nor am I investing in Colombia-specific stocks or stock basket(s).

I did some research and then bought exclusively one dozen stocks based on exchange-traded funds -- ETF's.聽 These are baskets of stocks, including SPY, QQQ and other baskets of large-corporation stocks, some of which focus on tech, a couple with multi-national exposure.

Part of my concept is to spread around the risk to which individual-stock pickers are exposed.聽 Another part is the growth that many large corporations have been experiencing during the pandemic as they seemed better prepared to 'weather the storm' than small- and mid-cap companies.

cccmedia

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cccmedia Ecuador/Colombia Expert

10285POSTS

5 years ago

To balance my holdings, I am keeping my Quito condo even though I have been spending half the time or less in Ecuador in recent years.

I like the idea of having a home base in South America.聽 I also like the idea of holding real estate even though I don't recommend acquiring it for Colombia Expats.聽 And I particularly like owning a residence in a relatively safe place such as the historical center of a national capital.

I also will keep my 2016 Chevy car even though I could get by without it in Quito.聽 One benefit is convenience when traveling to Colombia.聽 It is easy to register the car at the Rumichaca border (when open to vehicular travel) and to bring a trunk full of personal effects, plus a microwave oven, a space heater and various other conveniencias.

cccmedia

1 member reacted to this post

cccmedia Ecuador/Colombia Expert

10285POSTS

5 years ago

For you, Liber, I like the general idea about investing in Colombian coffee.

I suggest you find a way to do it without attempting to establish or acquire a coffee farm.聽 Ask me to back up this opinion if you wish.

The Coffee Region of Colombia is a wonderful area.聽 I have visited a number of times, sometimes staying for a month or more at a time.

Based on my conversations there and my readings on the Internet, I believe that the Coffee Region is the most popular part of the country for Colombians to vacation or visit (not necessarily Expats yet).聽 It is a safe region -- the only one that I have excepted from my advice not to drive between Colombian cities at night.

I have been watching the weekly Sunday 'Coffee Time' hour hosted from Armenia, Colombia, by a USA Expat named Loren Lowe (rhymes with cow) on the YouTube 'Gran Colombia' channel.聽 He has some excellent insights about Eje Cafetero and Colombia in general .. with Q-and-A, travelog videos .. plus local/Expat guests on some Sundays.聽
Search at YouTube.com:聽 gran colombia coffee time

cccmedia

cccmedia Ecuador/Colombia Expert

10285POSTS

5 years ago

You also asked about real estate in Colombia.

Please remember what I and some other veterans of 大咖福利影院 have recommended on this site...

The number-one rule for Expats in South America is... do not buy a home or property until you have lived for a total of one year or more in the target market.

Practically any property for sale in Colombia -- or its equivalent -- can be rented at less risk .. and without the years-long process of re-selling that over-eager Expats sometimes experience.

Besides... Buying real property in a volatile country such as Colombia during an ongoing pandemic ... what could possibly go wrong?

----

If anyone finds s/he is getting overwhelmed by the impulse to buy property upon arrival in South America, I suggest they stop reading International Living and Live & Invest Overseas .. until the feeling passes.

cccmedia

Liber87 Member

17POSTS

5 years ago

Those is really interesting to read. Yes, you are correct about real estate, I am intended renting few years until we cemented in Colombia.
I like to understand better local market and real estate as well in few years. This time is much uncertainty because how long will dragged pandemic. When do return to old ways is obsolete now because a lot people got taste their local vacation during pandemic so they will do again without take long trip to anywhere.

I like to keep check around for while before I engage serious investment.

I have to find out what rare or not available in Colombia then I interested to know. There plenty time left to do.

But I am appreciate anyone comment about investment idea. I like to see what you missed or people talking about something they need it.

I know investment is big capital to start, that why I have and willing give try.

Liber87 Member

17POSTS

5 years ago

Just came up thinking about short term sources, Uber or Kangaroo, is available in Colombia and they deliver a lot during pandemic? Just figure out what solution in start, I can live with minimal income like locals, until find right investment.

Otherwise, how colombian people use their cars for maintenance? Because I am Mechanic so might to do some odd job is fine.

Thank you for your time and answer.

OsageArcher Colombia Expert

1660POSTS

5 years ago

Colombia is ramping up its production of avocados for the export market, specifically Hass avocados.聽 You may want to look into that as an investment.聽 This article from 2014 says you need at least 12 million COP to invest:

Do internet searches for
colombia aguacate hass
colombia inversion aguacate
and you can read a lot of articles explaining the ins and outs.

If you do get a visa, make sure you are legally able to work at "odd jobs".聽 As a tourist you are not legally allowed to do so.聽 If you do not have fluent Spanish and a skill in high demand it is unlikely you would be able to work in Colombia, either legally or illegally.

cccmedia Ecuador/Colombia Expert

10285POSTS

5 years ago

Liber87 wrote:
Just came up thinking about short term sources, Uber or Kangaroo, is available in Colombia and they deliver a lot during pandemic?

The delivery service Rappi started in Colombia about two years ago .. and is spreading around South America.聽 There may be ways to invest in this company, which seems to be revolutionizing the way food, goods, electronics and specialty products are distributed to la gente.

The company's name is a play on the Spanish word meaning 'fast' -- 谤谩辫颈诲辞.

cccmedia

Juan Droverse Member

10POSTS

5 years ago

I would consider a look at the crypto space as well. With so many Venezuelans in the country and their economy looking the way it does, it is only a matter of time before Colombia becomes a hub for interesting fintech experiments in Latam.

1 member reacted to this post

Cheryl Moderator

16293POSTS

5 years ago

#10

Hello everyone,

Please note that some off-topic and inappropriate posts have been removed from this thread.

Cheers,

Cheryl
大咖福利影院 team.

1 member reacted to this post

Liber87 Member

17POSTS

5 years ago

#11

Hello everyone, I was very busy all month till today. Thank you for comments and I will look into those. I heard about avocado thing, will research more. About 12M COP looks good start for me. Thank you for info, OsageArcher.

For Visa, first I have to tourist later I may use other visa category since I have in relationship with Colombiana.

Otherwise, I been looking setup virtual address in Colombia. Anyone have experience with this matter? Because I read national post system in Colombia is very bad and need use DHL/UPS etc. Here my question what solution or alternative did you found or know?

Liber87 Member

17POSTS

4 years ago

#12

Hi everyone, I am back again, I read a lot around here.

I want rent mail po box or delivery storage facility in Medellin, or anyone willing offer assistance about this with your experience. I read Colombian post system not really reliable. It is little difficult to do without I am in Colombia. What your advice?

Thank you for your time and help.

OsageArcher Colombia Expert

1660POSTS

4 years ago

#13

It is true that the Colombia postal service is not always reliable - and even less so, if you do not use the c贸digo postal along with the address.

You can find your postal code using this map, here:

The page for 4-72, the official national postal service for Colombia, is here:

Liber87 Member

17POSTS

4 years ago

#14

Thanks for answer, here my new question is post code is exact to point the house? Or how this system works?

OsageArcher Colombia Expert

1660POSTS

4 years ago

#15

If you go to the first link I gave, you will see each postal code is for an area, not a house - much like the zip code in the USA.

Addresses in Colombia are not always standard but often follow this format:
street name #number 1 - number 2聽聽聽聽 such as
Calle 65 #9 -12聽 or聽 Calle 65 No.9 - 12聽 which is deciphered as a address on
Calle 65, located about 12 meters from Carrera 9

Here are several links explaining Colombia addresses:

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Liber87 Member

17POSTS

4 years ago

#16

Thank you for explaining. Also I thank you for your time and help as well. You are awesome here and there. Hope everyone enjoying in Medellin.

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#17

With the U.S. government taking on billions more in debt this year .. and the resurgence of covid cases (back over 120,000 new USA cases per day lately) .. U.S. Expats may be looking to diversify their assets.

Over-exposure to USA stocks could become a financial disaster if an investor's assets are out of balance in a bear market.

An answer could be adding an investment in a large global "ex-US" ETF.

To find the list of the three biggest such ETF's, you can Google 3 largest global ex-us etfs, where you will find the relevant Investopedia site.

Individual investors will have to determine if they prefer an international ETF that is comprised of issues from established countries, emerging countries or a combination of both.

cccmedia

CanadaDoug Contributor

156POSTS

4 years ago

#18

crypto of course

prospector911 Banned

71POSTS

4 years ago

#19

CC....una pregunta.....is the land border now open at Rumichaca? I cant seem to get a straight answer from anybody. The FaceBook Pan American Travelers, (which is generally very good and accurate) say it is still closed. Whats the deal on that?

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#20

prospector911 wrote:
CC....una pregunta.....is the land border now open at Rumichaca? I cant seem to get a straight answer from anybody.

Since we're on an investing thread, it would be off-topic to answer the question here.

So I have responded at the Ecuador land-crossings-into-Colombia thread that I started in April on this Colombia forum.聽 You should be able to find a link at the Colombia forum welcome page.

cccmedia in Quito, Ecuador

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#21

Wall Street is taking a breath, with the markets closed for the Labor Day holiday weekend.

Investors in American stock markets have been enjoying a banner year.聽 The S&P 500 index is up 22.5 percent this calendar year, on pace for almost 35 percent returns for 2021.聽 That's rare air for stock investors when banks are paying a tiny fraction of one percent to savings-account depositors.

Despite horrendous weather/climate events, the delta variant and losing a war in Afghanistan, U.S. stocks have kept climbing.

Is it time to take profits?聽 Well, no one can reliably time the market.聽 But I'm not getting out again (as I did temporarily after the start of The Situation).

Technology advances, unemployment at 5.2 percent (the lowest unemployment rate since the start of the pandemic 18 months ago), positive sentiment among business leaders and strong corporate profits .. all signal the extended market rally could keep going higher.

The U.S. economy has grown beyond the point where it was when The Situation befell us.聽 Other nations can't accurately make that boast.

cccmedia

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#22

Online stockbroker.

When I was establishing an account to trade stocks some years ago after moving to South America from the USA, I found out that many online brokerages did not want to provide services to Expats from North America.

Eventually I found one that was glad to take on my account -- Interactive Brokers -- one of the largest brokers worldwide.

I like the trading format, although I would note that there is an extra step beyond the password in logging into the system -- six digits have to be entered at a log-in page.

Interactive permits me to trade options, though only on a cash-secured basis.

Commissions on buy-orders are usually one dollar.

cccmedia

I do not receive any financial benefit for mentioning Interactive Brokers.

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#23

Investing thread for 2022.

Six months after starting this investing thread for Colombia Expats in mid-2021, I have just now initiated an investing thread on our worldwide Expat Caf茅.聽 It's titled Investing... What Expats Like for 2022.聽

Colombia Expats -- as well as members on our many other 大咖福利影院 forums -- are welcome to share their investing plans and ideas on the new thread.聽 It's not limited to stock investing.

If you haven't visited the threads of the "Caf茅" before, you can find its clickable list of topics -- including the '22 investing thread -- by Googling expat.com expat cafe

cccmedia

Kolse New member

7POSTS

4 years ago

#24

Here麓s a good one for those interested in the colombian stock market

A conglomerate led by colombian billionaire Jaime Gilinski and the UAE Royal family is offering (as of Thursday) $2.2 billion dollars for 60% (aprox) of Medellin based Nutresa S.A. (think Nestle). The interesting part is that the price is a 37% premium on Nutresa麓s latest stock price (Tuesday).

ernietorricelli9 Banned

90POSTS

4 years ago

#25

Thanks / Great info / There is some gem investment opportunities in developing countries - no risk -- no rewards

cccmedia Ecuador/Colombia Expert

10285POSTS

4 years ago

#26

Kolse wrote:
Here麓s a good one for those interested in the colombian stock market.

A conglomerate led by colombian billionaire Jaime Gilinski and the UAE Royal family is offering (as of Thursday) $2.2 billion dollars for 60% (aprox) of Medellin based Nutresa S.A. (think Nestle). The interesting part is that the price is a 37% premium on Nutresa麓s latest stock price (Tuesday).

So how does one profit on this?

What stock market, if any, is involved?

What is the ticker symbol if relevant?

If the offering is at a "37 percent premium", what does that actually mean?聽 Does it mean that shares can be purchased at a discount?

XTang, what do you make of this?

cccmedia

ernietorricelli9 Banned

90POSTS

4 years ago

#27

This is not New York Stock Exchange / American Stock Exchange OTC or Euro stock exchange funding new IPO for investment and growth / investor and buyer be aware

Kolse New member

7POSTS

4 years ago

#28

cccmedia wrote:
Kolse wrote:
Here麓s a good one for those interested in the colombian stock market.

A conglomerate led by colombian billionaire Jaime Gilinski and the UAE Royal family is offering (as of Thursday) $2.2 billion dollars for 60% (aprox) of Medellin based Nutresa S.A. (think Nestle). The interesting part is that the price is a 37% premium on Nutresa麓s latest stock price (Tuesday).

So how does one profit on this?
Too late for that, only those who already own Nutresa stock can benefit from this offer, if it is accepted by the largest stockholders

What stock market, if any, is involved?
The colombian stock market.聽 There is a colombian stock market. Here麓s the website

What is the ticker symbol if relevant?
Nutresa

If the offering is at a "37 percent premium", what does that actually mean?聽 Does it mean that shares can be purchased at a discount?

It means that the potential buyers are offering a 37% premium on the last traded price in the colombian stock market as of last Tuesday.

XTang, what do you make of this?

cccmedia

Kolse New member

7POSTS

4 years ago

#29

If you麓re interested in learning about the colombian stock market, click on this

This is an overview of the Bolsa de Valores de Colombia, in english

CanadaDoug Contributor

156POSTS

4 years ago

#30

I find it interesting that crypto is not mentioned.

Fred Indonesia Expert

30549POSTS

4 years ago

#31

CanadaDoug wrote:
I find it interesting that crypto is not mentioned.

The OP's tone has been all about care and safety. Given crypto is all about volatile markets and a good number of dodgy dealers who run away with their investors' cash, it doesn't seem to fit the thread.

1 member reacted to this post