WHEN INVESTING IN ALIBABA ONE MUST ACT LIKE THE DALAI LAMA
- rbowe62
- Mar 10, 2022
- 1 min read
Everyone wants to follow the trends and take the easy route. No one wants to invest in a communist country. But what if that country has the second biggest market in the world an you prioritize diversification. Investing in Alibaba, the biggest ecommerce company in communist china, is a great debate. I take the stance that it is a great investment to be in right now. Alibaba reached a price of $317 10/27/20 and since then has dropped over 65% to $92. The fundamentals of the business have not changed but growth has, not because the business is messing up but rather the government was getting salty. Alibaba was having an extraordinary year in 2020 and was even having a smaller company of theirs, Ant, about to go public. Jack Ma was hype as hell and just made a speach basically saying f$ck communist China. This is when China unloaded everything they got on BABA, making it harder for them to grow and trying to level the playing field for their competitors that barely stood a chance before. Charlie Munger and Ray Dalio are too investors that take the risk reward analysis very seriously and have reputations of picking more conservative investments using intrinsic value rather than picking volitile ones with speculations of high growth like Cathie Woods. They both have been doubling down and betting big on Alibaba in recent quarters. This was a weight lifted off my shoulders knowing I was not alone in believing in Alibaba. With the recent decline in growth stocks, is it now time for value stocks to rally?


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