Alibaba

[Wildreamz]

..

What could cause you to expand your small exposure in Ali to a large one? If you do not mind sharing.

Most of my position has been built up a couple years ago when Xi still seem like the benevolent authoritarian figure.

My opinions evolved overtime, and am increasingly negative on the government's general hardhanded tactics and strategies both domestically and overseas.

Personally would like to see a few more earning quarters, and see how situation develop, before adding more risk exposure to China.

Also, as mentioned, the greatest strengths of Alibaba as an investment is not the potential reward; as it is already a very big company. It's mainly the predictability of it's business trajectory (pseudo-monopoly), inherent profitability (https://ycharts.com/companies/BABA/free_cash_flow_ttm), tech and strategic vision (https://www.reuters.com/article/us-aliba...SKBN1WA09R).

But when government's unpredictability overshadows Alibaba's predictability, then the thesis falls apart. And the investment will be more trouble than it's worth.

Peace.

PS: In general, I think the regulatory pressure to this point, though hard-handed, still falls under "good-faith", to me. But for them to be willing to decimate the entire Chinese EduTech industry overnight, the government is also signaling that they absolutely do not care about your capitalist profits, and will do whatever they deem necessary, with no recourse to the losses of foreign investors.