He thought he’d lose it all in 2002

📉 Stock market crashed

💰 Dollar doubled in value

🚩 Clients and employees were leaving

🤯 Sales pitches were NOT effective

But one move changed EVERYTHING

💵💵💵 He is now worth OVER $ 3B 💵💵💵

👇 Here is the story 👇
Guilherme Benchimol graduated in 2000 and took a sales job as an investment broker

📉 Yet, a crisis hit and the brokerage had to close, leaving Guilherme without a job
He took another job at a brokerage in Porto Alegre (Brazil) and met Marcelo Maisonnave, another starting employee

🤫 The two often discussed about their own secret idea: opening stock markets to retail investors in Brazil
They left their jobs in 2002 and started their own company with only 20,000 Reais in savings (around $ 3,500)

🚩 Again, the timing couldn’t be worse, the stock market had crashed and customers were fleeing stocks
🤯 One of their interns left and the pair gave 10% of the business to Ana Clara, another intern to make sure she wouldn’t leave

🚙 Guilherme had to sell its car and borrow 5,000 Reais from a friend to keep the business afloat
Business was hard and one factor made it even more DIFFICULT to get customers

🥶 Few Brazilians knew how markets worked and most invested their money in bonds
“Brazilians have been traditionally characterized by a risk-averse savings and investment behavior, investing mostly in fixed income products, particularly the Poupança savings account”
“This behavior stems from the experience many current investors had throughout the eighties and nineties where these accounts where one of the few safe investment products. However, Poupança has offered very low returns in the recent past” Michael Wagner et Al.
So how could they SAVE the business?

👥 Well some of Marcelo’s friends asked the founders to teach them a class on investing in stocks

🎓 The class was set up and over 20 people showed, of these 18 became customers
“That was a revelation. I realised that in order to get customers, it was necessary to teach them how to invest. The following week, we announced a weekend course in the newspaper on how to invest in the stock exchange.”
From this point, the founders relied on investing classes to attract clients

🔥 By 2007, their company already had 30 branches and by 2008 had over 300 affiliated offices throughout Brazil
💸 This strategy enables XP Inc. to benefit from a low CAC, supporting its growth and profitability all while generating the cash it needs

📈 Thanks to its broad user base, it is able to boost its acquired targets’ audience and improve profitability by using shared services
👥 $XP is now increasingly pivoting towards a consumer-first focus as demand for investing tools rises across the increasingly wealthy Brazilian population

🏦 $XP is backed by Latin America’s largest bank, reassuring initially sceptical customers, of XP’s health going forward
“After Itaú—Latin America’s biggest bank by market value—announced the acquisition, analysts expected XP to lose clients because it wasn’t independent anymore. The opposite happened: Customers liked that XP now had a big bank as a partner.” Bloomberg
✅ We’re long $XP

👇 Here is the full story 👇

getbenchmark.substack.com/p/xp-inc-brazi…

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