Russia is the market that investors love to hate.
George Soros lost over $1 billion investing in Russia after the Russian government defaulted on its bonds in 1998. When asked about Russia, Charlie Munger, Warren Buffett’s partner at Berkshire Hathaway (BRK-B), harrumphed: “We don’t invest in kleptocracies.” One investor famously declared after the market’s meltdown in 1998: “I’d rather eat nuclear waste than invest in Russia.”
Russia’s image hasn’t improved since. Fifteen years ago, when you heard “mafia,” you thought of the Godfather. Today, you think of a Russian “biznisman.” If India is embodied by a highly educated, dedicated high-tech worker, Russia is the thug you cross the street to avoid. India is Bill Gates. Russia is Scarface.
With Russian President Vladimir Putin annexing Crimea at his whim — and lining tens of thousands of troops along Ukraine’s border as a thinly veiled threat for a future invasion of Ukraine — chances are you feel the same way.
Certainly, you wouldn’t be alone.
Read more about Russia and the #1 contrarian investment pick at Eagle Daily Investor.