It's important to zoom out especially in this situation. The Hang Seng Index has had many large draw downs just like we experienced over the last couple years. I expect this one to be the same as those in the past and be followed by rapid rise when sentiment turns.
I own BABA here in the mid 80s. This one definitely requires patience. Given the low valuation and high cash flow and buybacks (and forecasted growth), it seems worth the hold despite the potential opportunity cost. I see a good margin of safety but the China-related risks are certainly real and do remain.
I always wondered when the money will start flooding back to China. Seems the China bear market is endless.
It's important to zoom out especially in this situation. The Hang Seng Index has had many large draw downs just like we experienced over the last couple years. I expect this one to be the same as those in the past and be followed by rapid rise when sentiment turns.
For sure Kyler. Chinese stocks are dirty cheap. Can't wait for the sentiment turns on our favour.
I included your post in my Monday links collection post: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-august-5-2024 I don't have any experience with Alibaba - I use when Shopee in Malaysia and Temu (expanded to Malaysia) or Amazon in the USA which I wrote about some months ago: Can Temu Take on Amazon.com & the Rest of the World? https://emergingmarketskeptic.substack.com/p/can-temu-take-on-amazon-and-the-rest-of-world
I own BABA here in the mid 80s. This one definitely requires patience. Given the low valuation and high cash flow and buybacks (and forecasted growth), it seems worth the hold despite the potential opportunity cost. I see a good margin of safety but the China-related risks are certainly real and do remain.
I think Munger would be agree with you :)