Dear Sirs! I'm a value based investor during the last 6 years.

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Posted by Ts on July 16, 19100 at 11:26:11:

And I think that liqudity is a very important point, which must be included in any model of valuation. Just one example. Currently we have a lot of investment opportunities in Russia when a regional electrical utilities companies have a net annual profit more that market capitalization. So a marging of safety exelent, but not so many peoples are interesting to invest. Why? Ratio of unrisky investments ( Russian External Debt)is near 15-16% and not answering for the question. Liqutidy is an answer. Higher political risks - higher premium for liqudity. More an alternative speculative opportunities - more premium for liqudity.

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