"[Russian stocks are] cheap relative to everywhere else, and cheap relative to Russia's own valuation history. Both measures are now much where they were back in 2008, and not far off half their averages over the last ten to 15 years."You will say that this makes sense. After all, who wants to pay normal prices for assets which are based in a very abnormal state? Surely, anything dependent on a slowing economy, that is in itself dependent on gas and oil, is to be utterly shunned? As is any investment that comes with the appalling corporate governance on offer in Russia."
"Russian companies are very inefficient. And they work in a world that makes it hard to get things done," he reports."But you have to understand that they lived for 70 years in an economy that didn't care about getting anything done. Output didn't really matter."
"I was sceptical when I first arrived in Russia, but I came away confident that there is a real opportunity in Russia to take advantage of this country while it catches up with the rest of the world. What's great about Russia is that the earnings are already there – we don't have to buy 'pie in the sky'."