11-10-2019, 01:11 PM
Not just for Food Empire but for investing in Russia generally, besides the common emerging market risk and elevated political risk, Russian bond crisis in 1998 brought down LTCM with RUB move from 6.5 to around 30 to US$, 2008 devaluation due to oil price collapse from around 23 to 36, then the 2014 devaluation including Crimea annex from around 35 to 80. Now it's 64.50. In 20 years since I met them, the value destruction due to RUB depreciation from 6.5 to 65 is quite remarkable.
When one has mismatch in Asset / Liability currency difference, the pain is more than accounting paper translation loss
Unless one is keen to take Russia risk, like i insinuated above, I don't think they will diversify any time soon.
When one has mismatch in Asset / Liability currency difference, the pain is more than accounting paper translation loss
Unless one is keen to take Russia risk, like i insinuated above, I don't think they will diversify any time soon.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)