Is This The Mexican Berkshire Hathaway?

One of Latin America’s largest convenience store chains is coming to the United States.

And while many American investors may not know Fomento Económico Mexicano ($FMX), it’s a major powerhouse throughout Mexico and many other countries. In fact, it’s sometimes compared to Warren Buffett’s Berkshire Hathaway.

This is a conglomerate that owns convenience stores, gas stations, Coca-Cola distribution rights, and a payment processor network.

In this article, we’ll look at what Fomento Económico Mexicano does and why it might be an interesting emerging markets play on Latin America.

A Little About Fomento Económico Mexicano

Fomento Económico Mexicano, which I’m now going to refer to as FEMSA because that’s how it’s abbreviated around the world, has been in business for over 130 years. And, the company operates in over 17 different countries.

FEMSA is divided into three business segments.

The first is its Coca-Cola FEMSA unit which bottles Coca-Cola products throughout much of Latin America. If you ever buy a Coke, Powerade, Del Valle juice, or Ciel water in Mexico, you’ve done business with FEMSA. Coca-Cola FEMSA also operates in Guatemala, Nicaragua, and parts of Argentina, Uruguay, and Brazil.