Russian equities offer a unique value proposition.
Ignore the Russia narrative on mainstream media.
Russia is an extremely interesting market to look into.
1. Its macro metrics are a lot healthier than those of most Western countries and emerging markets.
2. Russia’s stock market is seriously undervalued, and it offers amongst the highest dividend yields in the world.
I decided to interview two experts on the matter:
– Singapore-based hedge fund manager Lyall Taylor who is well-known on fintwit (@lt3000lyall) and for his blog lt3000. You can follow him on Twitter here
– Swen Lorenz of undervalued-shares.com, whom I interviewed a few times, and who is going to come up with a lot of Russia content in the next few months.
00:00 Introduction, and the Western narrative on Russia
01:45 Why invest in Russia? Reforms, less O&G dependency, improving living standards, deleveraging, low debt levels, working age population, etc
16:17 Why invest in the Russian stock market? Low valuations, high dividend yields, local retail investor interest, etc
22:15 Exit strategy
25:15 Dividend yields in Russia
28:25 Why invest in Gazprom
30:50 Why invest in Tinkoff
36:30 What is the biggest risk related to investing in Russia?
38:30 Risk of Russia being banned from SWIFT
This is what we aim to do at The Wandering Investor. We want to open your eyes to a World of Opportunities. In many (most) cases, this means exploring beyond established narratives.
Watch this very insightful interview/three-way discussion here.
Swen is also very kind to share a report for free with my audience. You can click here to access his in-depth report on Gazprom. It’s a little old, but the thesis is still intact, and it demonstrates the quality of his research.
Also, the easiest way to access the Moscow Exchange is by opening an account with IB. It’s easy, low fee, and can be done remotely. Click here on this affiliate link to find out more about my favourite brokerage. This platform allows you to trade in Moscow, Frankfurt, London, and New York, the main exchanges where Russian stocks are listed.
As always, none of this constitutes investment or financial advice. Make sure to read the disclaimers and to do your own due diligence.
*a consulting session is a discussion about your portfolio and objectives. It does not constitute legal, financial, tax or investment advice.