Rodrigo Velasco of Casa de Bolsa Santander: Learning from life

“You should know yourself well, know what you’re good at, and think about what you’re willing to do enthusiastically. Once that’s clear, the rest will come. Build your own path in life knowing who you are.”

Rodrigo Velasco

Rodrigo Velasco had been working at Deutsche Bank in Mexico for only few months when the 2008 crisis hit. “It really affected me because it was the first time I saw markets fall before my eyes, and it felt like the world was about to end,” he recalls.

Velasco, the current Managing Director of Casa de Bolsa Santander, learned an important lesson that helped him understand the world of finance: “It helped me understand that markets are emotional and irrational,” he asserts.

“All economic theories assume that humans react rationally, and that’s not true. We are completely emotional, we have fears and concerns, and that’s what drives most of our actions.”

Velasco thinks individuals who invest need to be a little more calculating when it comes to understanding the market. They have to be more disciplined and, above all, never panic. They also need to fully realize that a moment of euphoria could end the career of even the most brilliant professional.

“This is why, to be a successful investor, you need to read more about topics such as psychology or behavioral economy and not just finance,” he recommends.

There isn’t always a manual

Velasco has faced several professional challenges since he started his career at the Bank of Mexico; he subsequently moved on to work for Deutsche Bank and Merrill Lynch.

His biggest challenge so far has been forming BIVA in 2016, which, in 2018, became the second stock market to start operating in Mexico. He began working as Chief Operating Officer and then became Deputy CEO.

“It was a very important and complicated undertaking that required raising capital, thinking about what technology to use and how to use it, and actively engaging with regulators to create a new regulatory framework,” he says.

In order to create a new exchange — it had been decades since this had been attempted in Mexico — it was necessary to read academic articles and review success stories in other countries. “The hardest part is that there are no guides or instructions, so you have to take it one day at a time for everything to happen — only persistence and a very clear and concrete goal will help you achieve something like this”. Rodrigo adds that perhaps if he had not studied economics, he would have liked to become a lawyer.

The best school

Velasco is convinced that the people he worked with since he began his career are responsible for much of the depth of his professional training and his ever-widening experience and expertise in finance. “When you’re starting out, the most important thing is having a good leader, someone to learn from, who will help you get your feet wet in the field and start giving you responsibilities. I have been lucky to have very good superiors,” he says.

He believes that working, gaining hands-on experience, and making mistakes in real life is how you learn best.

“Degrees and books won’t solve your problems. When you are in school, you often don’t understand the purpose of what you’re learning, so you need to connect math and theory with the practical world. Work is the best type of school,” he repeats.

The lessons you learn with family also apply in your professional life: “I have always admired my grandfather, who turned his life around — starting from scratch, he created his own path and became successful. That’s a strong motivation for me,” he says.

“On the professional side, I have always admired Warren Buffett. He is disciplined, patient, not guided by his ego, and sticks to his convictions no matter what’s happening around the world.”

However, for Velasco, admiration doesn’t mean copying someone’s life: “We are all different and popular jobs ten years ago are no longer the same. You should know yourself well, know what you’re good at, and think about what you’re willing to do enthusiastically. Once that’s clear, the rest will come. Build your own path in life knowing who you are,” he recommends.

Machines and humans

The most important changes Velasco has seen in his profession are in systems and automation. “When I started, everything was manual, but it became very logarithmic and almost robotic,” emphasizes Velasco, who is also a tennis fan.

“What doesn’t change is the job of questioning and reflecting on what the numbers tell you, what’s happening or why and how it fits into our history. That’s how I try to bring value to investors I talk to and the place where I work. You want the numbers to tell a story that ultimately will bring humans back,” he reflects.

“Automation will not kill any industry, but will help us focus on being more creative.”

Another change that stands out is diversity and inclusion in organizations. “It’s a very important issue because it creates a larger range of views, forces you to question yourself and helps you look at other approaches that might not be so obvious to you. It is something that, fortunately, has grown,” he says.

Experience will always lead you from one thing to another. For this reason, Rodrigo doesn’t rule out a future working in government, such as the Ministry of Finance, or even going back to the Bank of Mexico. “I would like to help my country, which I love very much. I feel very proud of being Mexican and being able to live here.”

Disclaimer: The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Bloomberg.

Bloomberg invited the GETTERS of the financial market in Latin America to share their insightful stories about their careers, their success stories and the challenges they had to face while not only witnessing the development of this fast-paced environment, but actively contributing to its evolution by creating new tools, sharing best practices and inspiring change.