Mondegreen Posted May 14, 2018 Share Posted May 14, 2018 Hello All, I've been looking at this one for a while. See the below two right ups on the situation below: Bismark - 20180107 https://www.valueinvestorsclub.com/idea/Vostok_New_Ventures_Ltd/141482 Dylan Adelman - 20180423 http://www.sohnconference.org/wp-content/uploads/2018/04/Adelman_Presentation_2018.pdf My question is regarding the long term competitive advantage of the online classified ads business. See data on traffic to Avito and vk below: https://www.similarweb.com/top-websites/russian-federation Were vk to roll out a similar product they would seem to have a huge advantage in scale over Avito. I'd be interested to hear your thoughts. Thanks, Mondegreen Link to comment Share on other sites More sharing options...
cameronfen Posted May 14, 2018 Share Posted May 14, 2018 Yandex, the google of Russia, and a bigger company than mail.ru, the parent company of vk, does have a shopping page called Yandex.market. I don't know how similar it is as I don't read Russian however my guess is that Avito targets more individual to individual transactions. Link to comment Share on other sites More sharing options...
cameronfen Posted May 19, 2018 Share Posted May 19, 2018 Additionally Naspers is invested in Vostok for the Avito shares. Naspers seems to think the network effects of being in a two sided market like classified strongly benefit the number 1 player. Their record overall is incredible, and even there record outside their investmwnt in tencent is way bettet than most hedge funds not to mention vc's which are more accurate comps. Link to comment Share on other sites More sharing options...
Mondegreen Posted May 19, 2018 Author Share Posted May 19, 2018 Thanks for the feedback, I bought some shares on Thursday. I just think it's a great business model, the only thing stopping me fully diving in is the potential threat from VK who benefits from having even more people on their platform. I expect to hold this one for a long time. Thanks, Mondegreen Link to comment Share on other sites More sharing options...
ebdem Posted May 19, 2018 Share Posted May 19, 2018 Hey. I am going to the investors day in Berlin. Is anybody thinking of joining me? :) Link to comment Share on other sites More sharing options...
Mondegreen Posted May 19, 2018 Author Share Posted May 19, 2018 I'm stuck in the UK unfortunately, but it would be great to hear your thoughts Link to comment Share on other sites More sharing options...
cameronfen Posted May 19, 2018 Share Posted May 19, 2018 Personally i think mail.ru which owns vk is a better company. Haven't looked at avitos valuation but mail.ru is quite cheap (probably partially because its russian). Link to comment Share on other sites More sharing options...
cameronfen Posted May 19, 2018 Share Posted May 19, 2018 Naspers owns both mail.ru and avito. There mo usually is to buy two companies in the same market and merge them i think, so that will be what will likely happen. Link to comment Share on other sites More sharing options...
ebdem Posted May 20, 2018 Share Posted May 20, 2018 I'm stuck in the UK unfortunately, but it would be great to hear your thoughts What a pity! But I will write something. What I like besides Avito is their "power" to still find interesting investments in the startup & tech landscape. They seem to have a good network, which helps them where other players fail. Link to comment Share on other sites More sharing options...
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