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Turkey Investments Portfolio


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Hi Guys,

in his latest talk at MOI Global, Mohnish Pabrai shared that he has more ideas than capital and he believes that the Turkey stock market is underpriced.

 

In particular, he found a business in Turkey (you can go and check minute 15:30 https://moiglobal.com/mohnish-pabrai-202101/) which had a market cap of $19Million and the liquidation value of that business was approximately $300Milion-1Billion. He said that the better part was that it was run by an incredible capital allocator management. He now owns a third of the company. Guess what: the stock went up 7X is the last 18 months or so.

 

I am opening this thread in order to give each other ideas on the Turkey Stock market and a method to analyze Turkey stocks (where to find the equivalent of the US 10K and 10Q, useful resources and so on).

 

Enjoy 8)

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He spoke about this several months ago, but tbh, it was a difficult market to take action on any Turkish ideas (no specific names were named at the time either, so it would have required a lot of due diligence and access to the market to invest). The South Korea idea was more actionable, as you could have easily bought a index fund for the Korean Market and have done quite well over the prior year.

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South Korea ETF is possibly not much better bottom to now compared to some other buys bottom to now.

 

There is Turkey ETF too, but I have no clue if it's cheap/attractive or if it contains very different businesses to what Pabrai bought on Turkey market.

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The little I know about Turkish stocks is the Quality Consumer stuff.

 

Bim Birlesik - Convenience Stores

Ulker Biskuvi - Confectionary

 

Potentially more accessible is DP Eurasia (as it's London-listed) which is the Domino's franchise holder covering Turkey & around (from memory).

 

I wouldn't be surprised if the stockmarket is cheap overall, though these sorts of businesses are rarely 'cheap' of course.

 

 

 

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  • 1 month later...

I am still looking in the Pabrai Investment in Turkey. Political Leadership holds me back so far. Additionally as a foreign investor you are required to apply for some kind of investor/ tax id. Due to increased admin the brokers in my country stopped listing turkish equities. As long as I don't find an international brokers which offers trading at the Istanbul Stock Exchange I have to fly to Turkey to apply for that ID and open a trading account with a local bank. Addiltionally due to the politic situation rate of inflation for the turkish lira in January is about 15% and local interest rates are at about 17%. Thats definitaly not a no brainer for me. I guess the politcal situation is enough reason for me to stay out of Turkey.

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