Overview.
1. Alibaba has transformed from an empire builder into a more streamlined, value-focused company, prioritizing shareholder returns through buybacks and dividends.
2. Despite the tense situation in Sino-US relations, Alibaba's diversified ecosystem, lower exposure to the US market, and strong balance sheet provide a buffer against potential risks.
3. Alibaba's core e-commerce platform remains highly profitable, while investments in Cloud Computing, AI, and international expansion offer significant growth potential.
4. The current valuation undervalues Alibaba's Assets and growth engines, presenting a strong Buy opportunity, with potential upside in fair value reaching 50%.
Last week, I returned to Shanghai—a city that has held seven years of my life over the past decade. It was a nostalgic journey home. I gathered with a few old friends from the Chinese investment circle at my favorite barbecue stall, and over countless bottles of Tsingtao Brewery beer, we spent hours discussing the Real Estate bubble, the changing role of property in Chinese retirement planning, and the future direction.
When discussing Alibaba (NYSE:BABA) (OTCPK:BABAF), I realized that things have changed dramatically since Charlie Munger became the news focus for holding Alibaba shares. Back then, I also established a small position, but as a value investor, I always harbored doubts about the "business empire expansion" strategy—I do not agree with the idea of throwing money around and hoping to succeed in each...