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Daily Journal, long overseen by Charlie Munger, halves stake in China's Alibaba
https://www.channelnewsasia.com/business...ba-2620981
Quote:Daily Journal Corp, the publishing and software company where Warren Buffett's business partner Charlie Munger helps oversee investments and until recently was chairman, on Monday said it halved its investment in Chinese e-commerce giant Alibaba Group Holding Ltd.
In a regulatory filing, the Los Angeles-based company said it owned 300,000 of Alibaba's American depositary shares ("ADS")worth US$32.6 million as of Mar 31, down from 602,060 shares at the end of 2021.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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14-04-2022, 10:35 PM
(This post was last modified: 14-04-2022, 10:36 PM by CY09.)
https://www.businesstimes.com.sg/banking...ck-mas-ant
Another CCP agency news related to Alibaba's ANT financials.
To be honest, I am not sure if the line has been drawn but I dont think its clearly defined as a few views. China is still tough on cracking down
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Focusing on whether China is "tough on cracking down" in the moment is missing the bigger picture of "why", and "what" is their ultimate goal.
IMHO, 2c.
(not vested)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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Alibaba Stock – Is this a buy now after its plunge?
With the recent news on Charlie Munger slashing his stake in Alibaba Stock to the potential delisting news, this has definitely affected the stock price. All this has caused Alibaba’s share price to drop from its high of 300 HKD (Oct 2020) to about 105 HKD today.
That is approximately a 60% fall from its high, hence is now a good buying opportunity? Let’s take a deep dive to better understand the business and its financials.
For more than a year, Alibaba (BABA) has been on a downward trajectory, pulled down by regulatory fears. Hence, investors sentiment has been unfavourable toward Alibaba shares due to several concerns. Some of these bad news include potential delisting by the SEC and China’s potential involvement in the Russia-Ukraine conflict.
As a stock, Alibaba is rather unique as it is dual-listed in the Hong Kong and New York Stock Exchange. However, amidst all the unfavourable news, the Chinese government vow to improve capital market stability. Since then, there has been slight recovery for most of the Chinese equities. At its present share price, the firm has a market capitalisation of HKD$2.31 trillion or ~US$295 billion, which is still more than 60% lower than its all-time high. Multiple financial analysts and value investors have reiterated that most Chinese equities are currently undervalued. Hence, is this a good time to look into Alibaba stock and consider buying it?
This is our short and comprehensive analysis on Alibaba:
https://learntoinvests.com/alibaba-stock/
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these dual listings have confused me for a long time on how to estimate the percentage ownership of stakeholders and shares in float etc. whether it's sg-hk or hk-nasdaq. if anyone has a good way of explaining/understanding dual listings i would love to hear it and it would be greatly appreciated.
that aside, the munger sale/purchase of alibaba got a decent amount of attention. it didnt matter on the way down, it likely wont matter on the way up (or further down still). also maybe he didnt sell and instead converted half to the hk side.
JD, Alibaba stock exodus from New York intensifies
https://www.straitstimes.com/business/co...rd=dlvr.it
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Very insightful thoughts about Alibaba.
Recently, I also did a short comprehensive analysis about Tencent.
https://learntoinvests.com/tencent-stock-analysis/
I realized Tencent could potentially be a better investment as compared to Alibaba.
Please let us know do you think Alibaba is a better investment or Tencent, fellow value investors!
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https://www.channelnewsasia.com/business...rt-2842001
Billionaire Jack Ma plans to cede control of China's Ant Group: Report
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger
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29-07-2022, 04:08 PM
(This post was last modified: 29-07-2022, 05:23 PM by CY09.)
When we invest, we have to assess the risk.
To me, the political risk of investing in Alibaba is too high. Because of the acts of the founder Jack Ma, Alibaba has always been in the regulators cross hairs. Tencent's founder has been relatively quieter which has allowed his empire to move on albeit with some regulation.
I dont think it will stop even if Jack Ma relinquishes control of every Alibaba associated company. It is similar to how people still associate Microsoft with Bill gates even though its been a long time since he has stepped down. The only way forth is that the Chinese Premier changes or that Jack Ma passes on. Otherwise, the political risk of investing in Alibaba is high and that it should never be a core position of any portfolio
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30-07-2022, 02:22 PM
(This post was last modified: 30-07-2022, 02:46 PM by dreamybear.)
Well, I happen to come across an online personality who "all-in" Alibaba ...... to each his own, but at the same time, I guess it's not exactly surprising that Alibaba was added to the list ?
With the latest Alibaba price correction(perhaps still ongoing), some may consider its valuation attractive, particularly if one compares agst the US peers. Perhaps it may be useful to take some reference from the valuations of Chinese Big Banks vs US Big Banks.
At the end of the day, if we follow Buffett's style of investing, we have to consider, amongst other factors, whether this is one of the best investments for us at this time, i.e. is one reasonably confident that he/she can make more returns in Alibaba than the other stocks in his/her watchlist.
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Alibaba Added to SEC List of Chinese Firms Facing Delisting
https://www.bloomberg.com/news/articles/...-delisting
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Interesting. Lets put Dreamybear's hypothesis to the test
Chinese Big Banks-->one of the most undervalued group offers 7.5% dividends and a Price earning ratio of 4 or less
US big banks offer about 3% dividends with an average price earning ratio of 9 to 10.
Seen in this light, China's valuation tends to be 0.4 times of their US peers.
If Amazon is used as a comparable --> PE 64. This means Alibaba should be PE 25.6. Alibaba's current PE after last night sell down is 25.
The price sales ratio comparable dont hold true as Amazon is at 2.58 while Alibaba is at 2.15.
But overall it does seem there might be some truth to the hypothesis.
China's companies are valued 0.4 times of their US peers. Could this be the political risk premium for investing in China?
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