[The Next FANGs]

Jio Platforms, Reliance Industries subsydiary. Telecom, e-commerce, streaming services in India. 

Flipkart - e-commerce in India owned by Walmart (77%).

Snapdeal - e-commerce in India

Huge growth potencial businesses, but with no IPOs (yet?). Also Amazon India is coming.

[What are you buying today?]

1 hour ago, DumDumInvestor said:

Investing in Russia is insanity.

Potential new war in Ukraine and sanctions. Any business in Russia can be easily destroy by Putin and his close friends. Checkout what happened with Durov, founder of Telegram or what happened with Chichvarkin,  Michael Calvey and others. Checkout what happened with ruble in past 5 years add to this that Russia is more interesting in cheap ruble because it sells oil in $. In nearest couple of years 1$ will be 100 rubles, for sure.

To invest in Russia you really need to know that market very well.

Several Russian investors who live in Russia do not touch that market at all. I know quite well what happens there and I know the language and I would never invest in that country while there Putin in power.

I'm aware of the risks. I'm Polish. We were 'Russophobes' before it became european trend. Don't know this stories, but the one with Yukos and Khodorkovsky isn't probably far away.

Insanity is also investing in China. Yet Dalio, Munger, Buffet and Li Lu are doing it. Top tier investors will tell you that investing in US market at those levels is insanity too. Not to mention USD devaluation etc. IMHO there is no safe haven anymore (not from my perspective). I'm sure that if I keep my money on the bank account they will loose purchasing power at least 5% in a year. Thats the only guarantee I have. What I can do about it is to look for good businesses that I feel comfortable about.

If 1$ will be 100 rubles than great. PhosAgro is selling in USD.

[What are you buying today?]

On 4/3/2021 at 6:20 PM, MattR said:

Hey, do you have more information on both? Their numbers look great.

Hey MattR, yes of course.

PhosAgro

It's fertilizer producer from Russia with the best phosphate ore. Rich in phosphate and with low cadmium, arsenic and lead levels. It means that they don't have to do additional work to make their product the best quality and safe for people = low cost of production. They're making money even when fertilizer prices are low. Margins range was between 23-49% depending on the cycle. Own distribution network, so no middlemen, more money for the company.

Most of their products goes to China and India. It's possible that they increase sales to Europe, becasue EU wants to introduce more strict norms limiting alloved cadmium levels in fertilizers. That will hit PhosAgro's competition. Also they don't have to worry about US sanctions.

Have good, conservative management, with Jim Rogers on the board, concentrated on the business - not only on the stock performance - and rewarding shareholders with dividend (39-59% payout ratio). They grow 5-10% per year, passed ivestment peak and are planning to increase production till 2025 (Volkov project).

Long story short. Very good business and inflation hedge. Best quality and low cost producer in one. You can't be wrong with that. 

Risk is Russia and currency issues, but to be fair I'm more afraid of that what is happening in USA (FED printing, Biden's taxes and spendings...) than what might or might not happen in Russia.

FLOW

There is really good article about them on Seeking Alpha.

https://seekingalpha.com/article/4395073-flow-traders-portfolio-hedge-pays-fat-dividends

 

[What are you buying today?]

Hi!

 

Added to PhosAgro (LSE: PHOR) and Flow Traders (AMS: FLOW)

 

Also few days ago I bought small position in iShares ETF on Turkey. Just a test drive, we will see.