In short: From his Korea trip 18 months ago: "Hyundai is one of the best-of-breed OEMs that will survive the day" — and a QNX customer, which is what makes BlackBerry's recurring automotive revenue durable. Also on the list of global powerhouses Canada lacks. Supporting reference.
24:46that — right so they enable — right and so the point being is that I was in Korea 18 months ago Hyundai is one of the best of breeds OEMs that will survive the day and that's one of their customers so they have this recurring revenue stream that's going to come from Q&X going forward I think is very powerful — but they've always had that why is the stock taken off why have people just woken up to this — well okay so if you're going to move into an autonomous world if you're going
In short: A "fabulous business" and export powerhouse, but caught in Korea's demographic/labor-cost squeeze — "it's cheaper to produce a car in Alabama than in Korea," so production keeps moving to the US/China/India. Quality operator, structural headwind.
Hyundai is Korea's big carmaker and, in Pabrai's words, a "fabulous business" and export powerhouse. The problem isn't the company — it's the country's math. Korea's population is shrinking fast, which pushes wages up sharply, so it's now cheaper for Hyundai to build a car in Alabama than at home, and production keeps shifting to the US, China and India.
So he rates it a quality operator fighting a structural headwind rather than a clear buy: a good company whose home base is getting more expensive to run in.
17:34So if you look at companies in Korea which do not have an export bias, those companies face real challenges. The ones that do have an export bias, they have some tailwind but they're also it depends on what's going on. Like I would say that even the Hyundai of the world which are fabulous businesses — have challenges because of that. — Okay.
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