Brazil Value Talks: Cristiane Fensterseifer, CNPI, CGA
Performed 5x Ibovespa in 4 Years
Today I have the pleasure of interviewing Brazilian investor Cristiane Fensterseifer.
From December 2020 to October 2024 her historic performance will be the envy of anyone.
Her portfolio returned 51.20% in the period, versus 10.68% for Ibovespa.
This girl knows how to generate real value.
Shall we meet her?
BS: Cris, could you tell us a little about yourself?
CF: I am an investment analyst with over 17 years of experience in the financial market and founder of the website Investe10.
My mission with the website and the All in One portfolio is to help investors make informed decisions, always looking for opportunities that combine growth, good returns and diversification, mitigating risks and seeking to build a solid, safe and balanced long-term portfolio.
BS: What is your strategy for making money on the stock market?
CF: I use fundamental analysis and multiples to choose companies that have a combination of value, interesting dividends for the portfolio and potential for growth and appreciation.
My favorites are discounted stocks, often small caps, that have not yet been recognized by the market, but have solid fundamentals or great potential for growth and/or business turnaround.
BS: What is your process for finding a new buy opportunity? What filters do you use?
CF: I start with a screening process that involves multiple financial indicators, such as P/E, profit margin and revenue growth.
After this step, I deepen the analysis of the sector, the company's differentiators and its ability to sustain growth. I do the valuation based on cash flow, the comparison with peers, qualitative and quantitative analysis... it's a lot of work, hehe...
BS: How do you value a share: DCF, Multiples, implied IRR, a mix of the previous ones, …?
CF: I use a mixed approach. DCF (Discounted Cash Flow) is one of the main methods. I really like market multiples and the company's momentum, event cases and turnarounds also interest me.
BS: How do you like to build your stock portfolio, considering the number of companies, sectors and concentration?
CF: I like a well-diversified portfolio, with up to 15 more companies, distributed across different sectors.
BS: How often do you like to rebalance your portfolio?
CF: I constantly reassess to monitor performance and check that initial assumptions remain valid, but I only make changes when necessary. For me, the focus is on the long term, so I avoid unnecessary turnover.
BS: How long on average do you hold a position in your portfolio?
CF: There is no exact period. Some companies I sell in 6 months and others I hold for 10 years. We can say that, on average, I usually hold a position for at least 3 years, or until the investment case is realized or there is a significant change in the fundamentals.
BS: Do you believe that graphical analysis, together with fundamental analysis, can help with the buying and selling points of stocks?
CF: No, I don't use it and it's not my field of activity.
BS: What are your favorite sectors on the Stock Exchange? And the ones you avoid? Why?
CF: I don't have any. I like to analyze companies and their discounts and diversify across all sectors.
BS: Do you use derivatives? What is your strategy?
CF: No, I look for maximum simplicity in the application. I usually operate short in some cases that I find very expensive or to protect the portfolio and/or finance positions that I consider to be very discounted, only in the personal portfolio, but I do not recommend it to clients due to the higher risk and costs that I understand are for professionals.
BS: What is the cheapest company on the stock market today?