Best wishes from Brazil!

When you visit feel free to drop by, we can discuss investments with a caipirinha !

Cheers!
jrv

In the photo, me and my wife Bieke, with the new baby, Miro, sleeping and Pablo Mateo (left) and Sebastian. My biggest son Martin is not present (lives in Chile) and Femke neither.

About jrv

I was born in Spain and lived in Belgium, Chile, France, USA, Argentina among other places. Currently I am trying to settle down in a wild place. I am "retired", even though now I dedicate more hours "working" for my investments than I ever worked in the real labor market where I used to work in IT and Banking. I am a family man, I have a lovely wife, several sons and one step daughter. I have humble tastes, I like to stay home and read about companies and investments. I started investing at 25 before the internet bubble exploded. I did not know much about investing and liked technical analysis so my results were pretty bad. Fortunately I did not have much to lose. Some years later in 2006 bored of doing only real state investments and with quite a lot of money saved I opened an account in a cheap and excellent online broker and started again. This time I did not want to commit the same mistake, so I decided to follow a model. I heard that Warren Buffett was the best at making money via stocks so I started by reading a lot about him, all of his shareholders letters and several of the books that he recommended. I learned a lot, started applying his investing principles and reading a lot of 10K's. Digested news from lots of different sources. Basically I started buying very good and cheap companies and holding them for ever if possible and if nothing changed fundamentally. When the housing crisis started I was more than 75% cash. At that time I identified good companies at incredibly cheap prices so I invested most of my savings in stocks. In less than I year I doubled. By the second semester of 2009 I turned my software company into an investment vehicle and dedicated myself full time to it. My wife and I decided to change our lifestyle and moved from Belgium to the beach in a wild country. The goal was to keep fixed costs low in order to be able to live with a minimum 6-8% yearly return but specially to move away from the inhuman life of civilization and to have finally some peace and sunny weather to concentrate better on investing. Now I can think and study about companies 60 hours a week and I am doing great. I can finally do what I want full time and can proudly say that I have never been so happy, specially also with my just born 4th son, my other great kids and my sweet wife who supports me fully while I study most of the day and patiently wait for the opportunity to make a swing ! You can learn a bit more about my portfolio by viewing it at www.kuchita.com/view/sumo.php or you may learn more about me and my family by following the link "Author's site" from the menu above.
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14 Responses to Best wishes from Brazil!

  1. Brad says:

    Thanks jrv, I wish I could it sounds like a great idea.

  2. jrv says:

    Whenever you want Brad, we have a big house with lots of space for guests, mark my word!

  3. john hatcher says:

    You’ve got a beautiful family and a nice website jrv. I’ve been trading the volatility indexes for only a couple of weeks but have been trading equities for many years. Add me to the list of folks who are watching and liking your website!

  4. jrv says:

    Hi John thanks, I am in your same situation, I just started with volatility last week ! But have been on stocks since 1999. Feel free to subscribe to the mail list, you will not be spammed, you just receive one mail a day if I write. Or you can subscribe it to a RSS reader.

    Bye, and thanks for the comment and very best wishes !

  5. Pingback: How VXX is calculated and why backwardation amplifies it | The Intelligent Investor Blog

  6. Ray French says:

    Great website, jrv. It sound slike you havea great life in Brazil! It seems like you are familiar with various South American countries. Are you familiar with Uruguay as a place to live? I have been investigating leaving Europe aswell and read a lot of good things about Uruguay (low taxes, low crime, nice people, great meat, etec, etc.)

  7. jrv says:

    Hi Ray,

    I never went to Uruguay, except when I scale on a planes to go to Argentina and I had a great experience at the airport. I bought some things on the tax free area and talked with the Uruguayans there and realized how educated and nice they were, it really surprised me. It’s one of the places we think more about as a possible destination if we ever leave Brazil. Indeed from what I’ve read, meet is great, prices are not too expensive, there is quite enough work, middle class is broad and with a relatively high average. It has lots of coast, developed cities, and very importantly, low crime and good schools for children. So it really sores high in a lot of things we like. The weather is not as good as here and it’s less exotic, but that is maybe compensated by the rest. Chile is also quite developed, even maybe more than Uruguay, but I already lived there almost 15 years and I am not really interested in going back, I would prefer to have a new experience. Ah and another nice thing about Uruguay is that it very close to Argentina and Brazil and relatively close to Chile, which are nice countries to visit, and it has the low cost airline Flypluna to travel to, all of them for a very low price.

    Where are you from?

    Cheers!
    jrv

  8. Ray says:

    Hi jrv,
    I live in the Isle of Man, but I was born in Dublin. My family has lived in Bahamas and Cayman Islands and I spent some time in US and Australia. We are concerned about Europe, it’s fiscal situation and political direction (extremists seem to be on the rise, on the left and right). An issue that puts a lot of people off South America is the image of high crime; it seems like Uruguay is better…
    Ray

  9. Hi jrv!!

    I am from Rio de janeiro( I live in Atlanta) and your explanation of how to calculate vxx was very helpful. I opened up a short position on vxx two weeks ago and I had a couple quick questions for you. If investments like vxx are almost guaranteed to go to zero would’nt a long term short position in vxx be a great investment idea? And my second question is if there a clever way in which one can hedge your short position on vxx with another etf?

  10. jrv says:

    Hi Alex!

    Indeed I think that a permanent VXX position, is a great idea, specially adding into it at every volatility spike ( I have done it ).

    Here you can find an explanation of why I think the VXX will go to zero: VXX historical data and model

    But actually never reaches zero due to reverse splits. Anyways if you compare the current VXX price of 14 versus the price of 418 when its started trading 3 years ago thats like almost a fall to zero !

    You do have to be very careful to short at the right time and never big amounts that could create margin calls, but if you take care of that you should do great.

    Unfortunately there is no way (at least not a cheap way) to hedge it, not that I know off. There are other Etfs or you can buy out of the money VXX calls for protection but all the things I’ve seen are quite expensive. The best time to hedge would be in low volatility periods (to pay less for the hedge protection).

    But the good thing is that if you short amounts that you can handle at the right time you do not really need to hedge.

    Cheers!
    JRV

  11. Hi JRV,

    I’m curious — how do you calculate the contango/backwardation percent in your spreadsheet? I thought it would be the ratio of 1st and 2nd month prices but that doesn’t seem to match the percent you have.

  12. jrv says:

    Hi Connelly,

    1 minus the ratio, then multiply by 100.
    Like that contango gives a positive number (when v1 smaller than v2) and backwardation a negative one (when v1 is bigger than v2).

    So precisely 100x(1-v1/v2)

    v1= 1st vix future settlement price
    v2= 2nd vix future settlement price

    You can use any time instant to calculate it as long as its the same time for both futures, it does not need to necessarily be at settlement.

    Congrats for living in what seems to be a beautiful place, I love hiking and music.

    Best!
    jrv

  13. Thanks jrv! I just had the ratio upside down.

    Congratulations on your good investment performance. I like Charlottesville although my wife prefers bigger cities. How is Brazil?

  14. jrv says:

    Brazil is quite great, I love it. My wife sometimes misses the advantages of living in a country with much higher income per capita. We live in Bahia, it’s the state with most black population. It has an amazing nature and is quite huge. People are friendly and quite good humored. The weather is perfect. We are staying near the Chapada Diamantinha. A big national park, a place perfect for hiking. Our kids practice lots of sports and spend most of the time outdoors. I can not complain much since I am doing what I want.

    Best !
    jrv

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