Making investments not only has the potential to make you wealthy but can also help generate wealth that is going to sustain your kin for generations. This is known as passive income and is the goal of many individuals today. Igor Cornelsen says that passive income involves a strategic plan that allows individuals to work less and make more – making money without the effort. Passive income can be earned in a variety of ways via investing – real estate, stocks, bonds, business, etc., and depending on the location of the investor, the startup can be quite a journey.
Investing through the stock market is a particularly complex strategy, especially when dealing with an unstable economy, such as that of Brazil. One must be confident and knowledgeable to find success. The alternative, failure, is however the most common route.
One investor who has found success is Igor Cornelsen – he is a widely-known and lauded financial investor who specializes in the Brazilian market. For more than 40 years, Cornelsen has helped individuals generate wealth through making investments in Brazil and similar markets. His knowledge and expertise has been utilized by his peers to assist them in developing financial wealth via his direct assistance and public statements.
What makes Cornelsen exceptional is his unique insight into the stock market, banking, and business of Brazil. Through years of employment, as well as in working in recognizable leadership positions, with major corporations, banks, and other businesses, Cornelsen developed a unique set of skills that led him to his expertise.
Who is Igor Cornelsen?
Igor Cornelsen was Born in Curitiba, Brazil on October 4th, 1947. In 1965, he enrolled in engineering courses at the Federal University of Parana, located in Curitiba, Parana, Brazil. The University, at that time, was the only school in all of Santa Catarina and Parana that offered engineering courses, making admission to the Federal University of Parana a highly coveted achievement.
After studying for 2 years at the University, Cornelsen switched his focus from engineering to economics due to his interest in numbers and statistics. In 1970, he graduated from the Federal University of Parana and obtained a job at an investment bank in Rio, Multibanco. This was the modus operandi for graduates in economics at the time due to their practiced skills of being able to calculate compound interest rates using slide rules. Computers were not yet being utilized in everyday business, so Cornelsen had quite an advantage.
With his skills and success in this position, Cornelsen was still able to carve out a name for himself in the industry, which opened the door to becoming an investment banker (the beginning of his long career towards achievement). As anyone with experience in the industry knows, success takes time and effort. Cornelsen spent hours a day in the office, building and developing his strategies. Being the workhorse that he was, and continuing to display dedication to his company, Cornelsen received two noteworthy promotions – first, in 1974, he was invited to the board of governors, and second, in 1976, he became the CEO. Cornelson’s talent and commitment led him to growing drastically within the company in only seven years.
However, in 1978, Bank of America acquired Multibanco, which led to Mr. Cornelsen leaving to seek out greener pastures. The first opportunity he came across was a position at Unibanco, a leading investment company in Brazil at the time. He held the position until 1985; unfortunately, due to skyrocketing inflation rates, he had to move onwards. Following his position at Unibanco, Cornelsen transitioned to work as an investment advisor for the Libra Bank PLC, a London Chartered Merchant Bank.
The move to Libra Bank PLC served as a turning point in Cornelsen’s career because, for the first time, he was going to get paid in US dollars. Cornelsen saw in this a new world of investment opportunities. He was right; his first stint at Libra Bank PLC was so successful that the Standard Chartered Bank offered him a position on its board of directors. Cornelsen then moved to London, where he continued to serve the company for the next seven years.
With years of experience and an in-depth knowledge in the industry, the investment guru decided to build his own brand and started Bainbridge Investment Inc. in 1995. According to Cornelsen, his idea for Bainbridge Investment Inc. was “a consequence of [his] experience as an investment banker. [He] used to manage funds in the stock market, since 1971 for the banks [he worked] for, so it was a mere consequence of [his] own experience.”
Today, the firm operates its main offices from the Bahamas, where it identifies feasible investment prospects and designs long-term investment plans for companies. In addition to providing guidance, Bainbridge Investment Inc. recognizes and tracks investment strategies. Cornelsen has also used his firm to educate and pass his experience and knowledge to potential investors.
Cornelsen’s Investment Strategies
Invest in Lower Performing Markets
Cornelsen’s roles at Unibanco and Multibanco, as well as his interest in stocks, have shaped his interests in the stock market. Cornelsen first found investing in international stocks: he would identify a country that he judged to be on an upwards path, then he would invest in businesses from that country. Cornelsen would follow the economic growth of that country, and when the businesses were performing positively, he would sell the stocks. Essentially, he was buying low and selling high.
Cornelsen advises investors to pursue these unique approaches – he rejects the notion that it is more financially profitable to invest in well-performing stocks; instead, he advises clients to invest in damaged stocks, stating that the low prices of such stocks provide greater opportunity for financial gain. By looking at the bigger picture, once the company is stabilized, an investor can resell their shares for a significant profit. In fact, Mr. Cornelsen has made a career out of buying assets and stocks in nations experiencing instability in their economic environment.
Although these markets are often characterized as unpredictable, they have their advantages and potential as well. For example, Cornelsen identified the potential of Brazil’s market due to the fact that they are the largest country in Latin America and one of the top food producers in the world. Many investors are distracted by the dysfunction and corruption in Brazil’s political parties and economic system; however, the fact of the matter is that the size and production of the country give it high potential. With a slight shift in the Brazilian economy, an existing investor could experience great financial gain when playing their cards correctly.
Do Your Research
Given the complication that can arise from investing, specifically international investing, Cornelsen insists that, prior to an investor expanding their portfolio, any businessman or woman needs to conduct in-depth research and have a full understanding of the country’s financial positions as well as the risks and benefits of each investment opportunity. Once an investor is knowledgeable, they need to utilize that information and invest accordingly. Cornelsen emphasizes: Don’t let emotions get in your way – this can make or break your financial growth.
Follow the Laws
When doing business, however, always follow the rules. Conducting business in a foreign country is never as simple as doing business in your country, where the cultural norms and laws are familiar. Therefore, completing thorough due diligence is necessary to avoid hefty penalties and overwhelming amounts of paperwork.
Additionally, on his WordPress, Cornelsen directs investors to always pay keen attention to currency exchange rates. This can drastically affect one’s investment. According to Cornelsen, investors that shop around for favorable forex rates tend to be more successful than those who do not.
To better understand, let’s look at an example of how currency exchange rates can affect international investments. Say that an investor was looking to invest $1,000 in a company in Bangkok – this would be equivalent to 32,349.50 Thai Baht (as of September 20, 2018). You invest that money in the company and continue with your daily business. Six months later you look and the stock has gone up 20% – giving you, the investor, a 20% profit. However, when you look at your return in American dollars, you see no change.
Unfortunately, this happens often. Due to the uncertainty of international currencies, profit does not always translate to profit. If the international economy is struggling, and their currency loses value compared to the US dollar, then the investor is losing money.
What Sparks Cornelsen’s Investment Ideas?
First off, Cornelsen is passionate about his industry. While attending college, he switched majors specifically to satisfy his desire to work with numbers. Cornelsen used his interests and knowledge to expand into the stock market. He finds that stock investing provides individuals the benefits of passive income – the ability to gain money without requiring active work. Passive income allows investments to make money for you – leaving the hard work behind. The ability to enjoy more limited involvement and the requirement of minimal resources, paired with continuous cash flow, have drawn Cornelsen to the industry again and again.
Cornelsen is also quick to remind us that he was exposed to finance at a tender age. With that edge, he gathered immense experience over time, which has been the source of a lot of his ideas. He also maintains that part of his success stems from his innate ability to recognize upcoming market trends before other investors.
Moreover, Cornelsen loves to do his research. He uses a considerable chunk of his time just going through financial websites and analyzing their data. Nevertheless, he advises investors to carefully choose the source of their financial information. He notes that most sites are biased, and thus, indiscriminately sourcing your investment strategy from every financial site you come across could prove to be your undoing.
Finally, Mr. Cornelsen is constantly tracking nations that display rising investment assets. He also notes those that are experiencing political or economic instability and waits for his moment to pounce on an opportunity. Like any savvy businessman, he does consult experts and partners too.
Conflict with Cornelsen’s Strategies: How He Proved His Knowledge
Cornelsen is not known as a silent consultant – rather, he publically shares his opinions and views and has had both positive and negative attention regarding his investment strategies; there have even been moments in which his views conflicted with those of mainstream investment advice. For instance, when the Brazilian government made significant changes to the economic environment, a lot of investors perceived this to be the buying signal because they believed the changes were meant to spur economic growth. Cornelsen, however, insisted that the changes were not enough to spur any growth and even went as far as predicting the inevitable negative consequences of those changes. As a result, Cornelsen sold his assets while others bought. When it came time for the 2015-2016 economic recession, Cornelsen came out on top.
Another conflict Cornelsen had with fellow investors came in the wake of the European sovereign debt crisis. Cornelsen was adamant that the Euro would remain steady while fellow investors saw it crumbling. Regardless of the economic recession that followed shortly afterward, Cornelsen still maintained his stance about the Euro’s future. As though spurred on by Cornelsen’s confidence, the Euro is gaining back its strength against the Pound Sterling and US Dollar.
Investment Tips from Cornelsen
Igor Cornelsen’s experience, education, and successful track record establish him as a valuable asset to any investment strategy. His opinions are backed by a history of success, and his honesty and transparent outlook on his strategies provide his clients the opportunity to build trust in his decisions. He is well respected in multiple countries worldwide and a mentor to many. Here are a few tips he offers to his audience:
- Avoid Losing Your Money: Even though every investment opportunity is followed by a cloud of risk, to be successful in the investment industry, you need to know when to pull out. This can be one of the most challenging aspects for investors; it is like gambling – when you are winning, you tend to think the luck will continue. Unfortunately, this belief has been proven wrong countless times, leaving investors broke, when in reality, they could have come out ahead. For this reason, it is imperative for an investor to pull out when they are in the green.
Granted that some investments will first lose some money before things begin to look up, if you find yourself perpetually losing money, you should consider the possibility that you might be doing something wrong. If this is the case, it may be time to reassess your investment strategy and consult with your advisor (covered later in this article).
- Now is the Time: Time is the most crucial asset in the investment industry. Knowing that, you must begin as early as you can! There is never a perfect time to begin investing – the market will never be 100% in your favor. To achieve true financial gain, you must invest in the long-term process, which demands education, experience, and personal development. Now is the time, regardless of what the critics say about the market. The longer you have to learn and grow, the more financial wealth you can gain.
This does not imply that you cannot begin investing when you are elderly, but invest earlier to avoid regretting that you did not start earlier.
- Invest in an Investment Consultant: As mentioned previously, to make money as an investor, you need to spend some money too. One of the best choices you can make is hiring an investment consultant. These are individuals with a wide breadth of knowledge about the investment industry. A professional investment officer will not only guide you towards profitable investment choices but will also warn you about bad investments.
- Know your resources. Knowledge is power; but inaccurate information spells financial ruin. Cornelsen outlines, in multiple interviews, that understanding the bias of your source of information is imperative to developing your strategy. Every media avenue has an agenda – they attempt to sway an audience in one direction. Additionally, not all information is correct! There are countless media sites available, especially on the internet today. Not all sources are viable – some are opinions, and some are full of false advertising. When an audience does not understand this, they can be swayed towards making an uneducated play with their portfolio.
- Diversify: Do not place all your investment eggs in one basket. In spite of how good the deal may look – do not go all in and put all your cash in one investment. If the deal goes sour, the fallout might be catastrophic for you. Therefore, diversify your portfolio to ensure that you are still gaining profits even when some deals are not making returns; if all of them are yielding profits, then a career as a successful investor is even more imminent.
Today, Cornelsen is retired and regularly travels between his homes in South Florida and Sao Paulo, where he has continued to help other people. He has written that working with new investors is an inspiration to himself. Apart from business, Cornelsen can be found enjoying a game of golf.