BABA - China bet
Based on a few factors, I am becoming bullish on China
* China is positioning themselves well and have shown the best COVID recovery
* They are implementing a copy paste approach (BATX -Baidu, Alibaba, Tencent, Xiaomi vs. GAFA (Google, Amazon, Facebook, Apple) and it is working
* Munger is a fan of China now, previously was not
* BABA has strong cash flows, undervalued on paper
* Hedge against US dollar, inflation hedge
Risks I see:
* Volatility due to emerging market - stick to blue chips
* Governmental risks - Antitrust fine could be the start of more to come as Jack Ma is being scrutinized
* JD and PDD competition
* Less accuracy/confidence in the filings
Let me know your thoughts.
* China is positioning themselves well and have shown the best COVID recovery
* They are implementing a copy paste approach (BATX -Baidu, Alibaba, Tencent, Xiaomi vs. GAFA (Google, Amazon, Facebook, Apple) and it is working
* Munger is a fan of China now, previously was not
* BABA has strong cash flows, undervalued on paper
* Hedge against US dollar, inflation hedge
Risks I see:
* Volatility due to emerging market - stick to blue chips
* Governmental risks - Antitrust fine could be the start of more to come as Jack Ma is being scrutinized
* JD and PDD competition
* Less accuracy/confidence in the filings
Let me know your thoughts.
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