Wednesday, October 25, 2006
Recently I bought a Russian stock for a few (literally just a few) clients and personally as well. I only bought it for clients my around my age, in a small amount with a tolerance for volatility. The name does not really matter but the stock is probably not ideal for the vast majority of our clients.
In trolling around the net I found a website that appears to comprehensively cover the Russian stock market run by a company called Finam. The site has some quote information, financial data, sector listings, news, analysis and more. They also maintain a blog called Russian Stock Market Blog with very short but informative posts.
A theme like Russia, and there are others like this, should, IMO, be owned in small amounts (for people for whom this is even appropriate) with an eye to the long term and with the expectation of extreme volatility.
I tend to think there is room in a diversified portfolio for this type of holding even if Russia specifically is too dicey. This might be especially reasonable if the rest of your portfolio tends to be a lot less volatile than the broad market, by design.
A quick administrative note; I made a typo in my post yesterday about DBV. I said that my purchase price was $24.48 which was incorrect it was $25.48. It was just a typo-the four and the five are right next to each other on the key board; apologies. I corrected it on the original post and noted the mistake but chances are you don't read a post twice.
Posted by Roger Nusbaum at 5:33 AM