The cover of the November 14, 2009 edition of The Economist, the only magazine besides The New Yorker and Vanity Fair (People for those with somewhat more high brow sentiments and an appreciation for writers of talent) worth reading, declared “Brazil Takes Off” and includes a 14 page Special Report on Latin America’s Biggest Success Story.

Everywhere you look, from finance to fashion, Brazil is in the news. And seems to have become the hot destination for investment and travel. Brazil has become such a popular travel destination that Madonna seems to be in Rio de Janeiro every other weekend, renting the entire top floor of the quite fashionable Fasano Hotel with posse and boy-toy in tow.

More importantly, Brazil has become a hot investment destination. None other than Sam Zell, the U.S. real estate entrepreneur and cofounder and Chairman of Equity Group Investments, a private investment firm, was recently quoted on the front page of the February 8, 2010 edition of the daily newspaper Estado de Sгo Paulo as saying “Brasil й melhor lugar para investor” (“Brazil is the best place to invest”). And he has put his money where his mouth is, investing US$500 million in the country.

While at this point, it’s almost a clichй to say it, the B in the BRICs, the acronym invented by the Goldman Sachs (before it became the investment bank people love to hate) in 2003, to bracket the emerging economies of Brazil, Russia, India and China, is fast becoming worthy of its spot therein. This despite the fact that at the time many people wondered if Brazil should even be included in a list of emerging economies to watch.

In the last three years, Brazil has received investment grade rating from Moody’s, Fitch Ratings and Standard & Poor’s. Of course in the wake of the Financial Crisis or Great Panic of 2008, the ratings of such agencies may not mean as much as they once did. Nonetheless, all three have raised Brazil’s sovereign debt rating to investment grade. It is also worth noting that Brazil has been awarded the 2014 World Cup and the 2016 Olympic Games and was one of the last countries to fall prey to the financial crisis and one of the first out of the global downturn.

Still readers are cautioned to take note; this very brief guide for foreigners interested in investing in Brazil should not be taken as investment advice. It is not. In fact, perhaps heed should be given to the words of the investment legend, George Soros, who was quoted no so long ago as saying, while attractive, the Brazilian Real may be as much as 30% overvalued. It should also be noted that Brazil’s stock market, the BM&FBovespa climbed more than 140% in U.S. dollar terms in 2009. As the saying goes: What goes up; must come down. The question of course is not if, but when. Such warnings aside, the following is a brief overview of the ways in which a foreigner can invest in Brazil.

The easiest way to invest in Brazil is to buy what are known as American Depository Receipts (ADRs), which are listed and traded on the New York Stock Exchange (NYSE) and the NASDAQ. For example, you could invest in Banco Bradesco S.A. a Brazilian bank, by buying its ADR, the ticker symbol of which is BBD and traded on the NYSE.

Foreign investors can also buy shares of Brazilian companies which have operating companies in Brazil, but holding companies outside of Brazil. The shares of such companies are listed directly on the same aforementioned stock exchanges. For instance, if you wanted to buy shares in Petroleo Brasileiro S.A. (Petrobrбs), Brazil’s world class oil company which somehow manages to keep finding new oil reserves off the coast of Brazil, you could do so directly through your broker or online brokerage account. The ticker symbol is BPR and is also traded on the NYSE.

Another way for foreigners to invest in Brazil is by investing in mutual funds with an international or global focus that hold shares of Brazilian companies. You can also buy Exchange Trade Funds (ETFs) that track the Brazilian stock market or the Brazilian Real. The ETF iShares MSCI Brazil Index, the ticker symbol of which is EWZ, is an index that more or less tracks the BM&FBovespa. According to the fund summary, which can be found at Yahoo Finance, this ETF seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Brazilian market, as measured by the MSCI Brazil index. The fund normally invests at least 95% of assets in the securities of the underlying index and in ADRs based on the securities in the underlying index.

The ETF WisdomTree Dreyfus Brazilian Real, the ticker symbol of which is BZF, allows foreign investors bullish on the Brazilian Real to bet it will continue to rise in value against the U.S. Dollar, as it did by nearly 50% in 2009. According to the fund summary, which can also be found at Yahoo Finance, this ETF seeks to achieve total returns reflective of both money market rates in Brazil available to foreign investors and changes in value of the Brazilian Real relative to the U.S. dollar.

It is also possible for non-resident investors to open up what is known as a 2689 Omnibus Account for the purpose of investing directly in the Brazilian securities. Such an account allows the non-resident investor to have access to the same investment products as would a resident Brazilian investor, from equities to fixed income investments. The 2689 Account is not an investment or brokerage account, but more like a bank account used specifically for the purpose of investing in Brazilian securities. A 2698 Account can be opened by a non-resident individual or non-resident legal entity. And you would not be taxed on your capital gains in Brazil until you repatriated them back to your country of origin. This article is much too brief to provide details of how a 2698 Account would be opened or maintained. However, it should be mentioned that doing so would require the assistance of investment and legal advisors, as well as registration with the Brazilian Securities and Exchange Commission (CVM, Comissгo de Valores Mobiliбrios) and the Central Bank of Brazil.

Another alternative would be to invest in a Private Equity Firm or Venture Capital Fund that invests in Brazilian companies. While private equity has matured and grown in Brazil in recent years, and appears to be returning to pre-financial crisis levels, venture capital remains in its infancy. However, venture capital seems poised toward rapid expansion as both Brazilian and non-Brazilian Venture Capital Funds have started to raise capital to invest in start up and emerging Brazilian companies.

Another avenue for foreigners to invest in Brazil is the Brazilian real estate market. Other than rural properties, non-Brazilian may invest in and purchase real estate in Brazil. This article is too brief to provide many details about the risks involved in buying real estate in Brazil. However, given the general lack of the use of title insurance in Brazil, and the proclivity of the Brazilian courts to seize property – in the hands of the buyer — sold by a seller who at the time of such sale had a law suit pending against him/her/it or who owed taxes to the Brazilian government, a Brazilian lawyer should be consulted in connection with any such purchase and a proper due diligence investigation of the seller should be conducted before buying real estate in Brazil.

The last alternative worth mentioning is targeting individual Brazilian companies as an individual or “angel” investor and taking an equity stake directly in the capital of such companies. This alternative is for the truly adventurous and would require the assistance of both legal and investment advisors. While this alternative is certainly the most adventurous and risky, it is the one that is likely to have the biggest return, particularly if you spread out your investments among several start up or emerging companies. As they say in the world of venture capital, one home run is all you need, despite the nine other strike outs.

For those looking to diversify their investment portfolio with an eye toward the global market place, Brazil in particular, this brief guide provides you with some options to consider, from the easy to the adventurous. Good investing.