No. of Recommendations: 6
Got round to listening to the whole thing. You also need context given the conversation and questions jump around quite a bit.
I took the following...
-China is good value still, bang for your buck. No change here.
-Political risk too hyped. China will not be invading Taiwan anytime soon.
-President Xi has done well in the past and will continue to do so. Complimentary.
-Outlook for the US poor due to valuations, BRK will do OK relatively speaking and won't be broken up. Very complimentary of Greg Abel.
BABA specifically, he made a mistake buying on the projections envisaged which have eroded and at the end of the day it's a retailer and competition and margin pressure may be a bigger issue than envisaged.
Own emphasis...
It is and it isn't. I dont see it as like Amazon or Costco at all. It's an ecommerce platform and business services company that helps the population with B2C and C2C transactions. What I like about Alibaba is the profitability without the infrastructure capex, compared to say Amazon breaking even on 500bn of sales. Alibaba takes trading commissions. JD.com is more like the Chinese Amazon.
Alibaba is also a spawner with many off shoot businesses like Alipay, cloud etc etc.
A great listen all round and I've learnt a great deal.
Happy holding BABA, Tencent and Prosus still and would rather hold BABA over Amazon or Costco at 40 PE
