We Study Billionaires - The Investor’s Podcast Network TIP422: Frontier Market Investing w/ Maciej Wojtal
Feb 13, 2022
Maciej Wojtal, an expert in frontier market investing, dives into the tantalizing prospects of Iran's stock market. He highlights equities trading at incredibly low P/E ratios and impressive dividend yields. The discussion navigates the complexities of sanctions, yet emphasizes Iran's economic potential and resilience compared to established markets like the S&P 500. Wojtal argues that now may be the time for investors to seize opportunities in this undervalued market, showcasing the landscape of diverse opportunities amid geopolitical challenges.
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Market Opening
- Opening up a market often leads to rapid growth due to foreign capital inflow exceeding market liquidity.
- Maciej Wojtal compares investing in Iran to early opportunities in China, Russia, and Poland.
Historical Market Openings
- When China's market partially opened in the early 90s, its index increased 12x in under two years despite sanctions.
- Similar growth spurts occurred in Russia and Poland upon opening to foreign investment.
Sanctions
- US sanctions currently restrict US investors from Iran, but other foreign investors are permitted.
- Due diligence is crucial to navigate varying sanction levels (UN, EU, US).