Colossal news has just broken on the internet, and it’s all about Mohnish Pabrai’s recent investment in Reysas (RYSAS.IS). Let’s learn more about Pabrai Reysas!
This article will discuss the results of the interview with Mohnish Pabrai. Based on the video above, the following is a partial interview. In addition, this article will discuss a little about Reysas.
So what is Reysas, and why is it so important to Mohnish Pabrai? Here’s everything you need to know!
Before we continue, you can check out our article about Mohnish Pabrai investing in Turkey here: 5 Amazing Things to Know About Mohnish Pabrai Turkey Investment.
Pabrai Reysas: Mohnish Pabrai Investing in Reysas (RYSAS.IS)
What is Reysas
Turkey-based Reysas Tasimacilik ve Lojistik Ticaret AS mostly works in the logistics sector. The business engages in the transportation of freight by road, water, and rail.
In addition to providing logistical services for the transportation of fuel, liquefied petroleum gas, liquid natural gas, vehicles, cold, frozen, and liquid food products, dry goods, electronics, tobacco and cigarettes, and cold drinks and beverages, it also provides these services for the transportation of other goods. Additionally, it is involved in warehouse management.
The Company operates vehicle inspection stations, manages ships, distributes tobacco goods, engages in real estate investment activities, and distributes tobacco products through its subsidiaries.
Pabrai Investing in Reysas in 2019
However, he doesn’t believe you have to be that way. However, he would point out that occasionally we do have the opportunity to make investments where the odds are simply so overwhelmingly in your favor and the economics are so attractive that you would want to try to do more. So, that can occur occasionally.
He was just considering the fact that in 2019, he invested in the Turkish company Reysas. And during my 25 years of investing, he never had the Reysas circumstance.
And he don’t anticipate it happening to me once again before my death. he believe this will only happen once in a lifetime.
In Reysas, a business that was worth roughly $600 million in liquidation value—not even inherent value—was available for 20 million. You could sell everything and collect 600 million instantly.
Thus, you managed to obtain a $1 bill for just three cents. And because they are a great capital allocator, it was money that was probably going to expand.
So occasionally that makes sense, but as he stated, he had a Reysas only once in a quarter century. Therefore, we can’t truly create a structure around it. Great investor Chuck Akre claims to have had two 100-bagger trades in his career.
Akre began purchasing Berkshire Hathaway, one of them, in the early to mid-1980s. American Tower was the second building. These two turned out to be 100-baggers.
And as Pabrai previously stated, he doesn’t think it’s realistic to anticipate having more than one, two, or three 100-baggers in a lifetime. he believes that is pretty much the extent of what might occur.
However, even if you manage a 10 by 10 portfolio and one of your wagers turns out to be this way, the error rate doesn’t really matter.
In the instance of Reysas, They had approximately 600 million in capital available. And the maximum amount we could invest in the business was $7,000,000, which gave us third ownership. In reality, it amounted to a 1% wager.
Even if the market cap is 20 million, They were only able to place that wager at its current size.
The fact is that the worth of the business has increased by only a third over the past two to three years, despite what you would think.
What Reysas means to Mohnish
That we never intervene with Reysas, unless there is an integrity issue or something unexpected comes up, seems quite straightforward and crucial to me.
I just hope I’m smart enough to remain in this position for 20 years without moving. And all I want to do is watch and support them all.
That is, I believe, how I think when I reflect. I don’t believe you need to visit three stocks. Even with a portfolio of 10, 12, or more stocks, I believe you’ll arrive there normally.
What are the Potential Benefits of Investing in Reysas
There are many potential benefits of investing in Reysas, including increased security, improved efficiency, scalability and lower costs. In addition, Reysas is a blockchain technology company that develops and deploys decentralized applications.
This means that its products could potentially improve the efficiency of businesses by facilitating better communication between their customers and employees.
Furthermore, Pabrai believes that the potential benefits of investing in Reysas include: increased security, improved responsiveness, scalability, trust and transparency. He also thinks that the platform will be beneficial to businesses as it facilitates a more efficient and secure relationship between them and their consumers.
Mohnish Pabrai, one of the world’s most renowned investors, is investing in Reysas (RYSAS.IS). The Company operates vehicle inspection stations, manages ships, distributes tobacco goods, engages in real estate investment activities, and distributes tobacco products through its subsidiaries.