[INVESTMENT] Charlie Munger: Why I went all in ALIBABA Stock? [YoutubTube Video: ]

  Charlie Munger: Why I went all in ALIBABA Stock?

 

[TRAVEL] Kota Kinabalu & Kundasang, Sabah - Tripartite Bar Games 沙巴 亚庇 。昆达山 2019

[Vlog] Kota Kinabalu & Kundasang, Sabah - Tripartite Bar Games 沙巴 亚庇。昆达山 2019 

All videos were filed with Apple iphone 6S plus --------------------------------------------------------------------------------------- 

 Music： Lo Fi 1 04 by knifeparty from Pixabay

[INVESTMENT] MEMO - 09.02.2022

Hello everyone. Today is the 9th day of Lunar New Year (正月初九）. On this day, it would be the ritual or celebration known to the Chinese Hokkiens as “拜天公”, which literally means “praying the Heavenly God”.

The ritual or celebration are so delicate that all of the setup, the offerings, the food preparation have to be carefully done and it also involves a lot of manpower and visually unique.

For those who celebrate, Happy 正月初九!

MARKET

Like I said before, for the past few weeks, volatility in the market for is expected. 

During an interview in “The David Rubenstein Show: Peer-to-Peer Conversations”, Ray Dalio explained the recent market selloff as follows:-

“What's happened is they produced a lot of debt and gave out a lot of money and so everybody's got money and it's also very easy to borrow money to buy things and as a result, if you create much more buying power than you create goods and services, you've got a lot much more inflation and the federal reserve has been behind the curve slower to tighten monetary policy and as a result we're now starting to see the rise in interest rates….. interest rate goes up a percent that means all the other assets have to adjust we're in a process of making that kind of adjustment...”

Nevertheless, I remain cautious given ongoing market challenges and global uncertainties (COVID-19 and geopolitical tension). I do not expect the market to return to pre-pandemic conditions anytime soon and foresee that commodity and energy prices will remain inflated moving forward. 

Year 2022 was undoubtedly difficult in many aspects, yet I believe we have emerged in some ways even stronger than before thanks to the strategy of diversification.

PERFORMANCE

Due to the volatility of the market, tech stock like $FB (Meta Platforms Inc),  which I am holding is plunging more than 20%.  $GOOG (Alphabet)  is the only stock that I am very satisfied with due to its satisfactory earnings.

Overall, my portfolio performance currently is still on the uptrend since its inception in May 2020.

Stay safe.

MNMLH

09.02.2022

TAKE NOTICE that the above memo is by no means a recommendation or a solicitation or expression of views to influence you to buy or sell any stocks. The above memo is just my sharing on what I am doing with my portfolio and my thoughts along my investment journey since May 2020 for my future records and reflection usage.

[INVESTMENT] MEMO - 20.01.2022

Happy New Year, everyone! Time is flying fast. With a blink of an eye, 19 months have passed since I started my international portfolio with eToro here in May 2020.

REFLECTING

Some reflections should be done (in questioning my investing decisions) for a better future. Investment return for my international portfolio here in eToro for year 2021 is not as good as year 2020. 

What’s the main reason? I think the main reasons were due to the technology stocks selldown in the U.S. and the Chinese regulatory changes targeting tech companies in mainland China. As I have been holding substantially in $BABA (Alibaba) $0700.HK (Tencent) $03690.HK (Meituan Class B) and $2318.HK (Ping An Insurance), there is no surprise that my international portfolio is affected.

Having said that, I had made some adjustment along the way and I am quite satisfied with the result of 9.84% investment return for year 2021 (whereas year 2020 the investment return was 24.20%).

INSECURITY

COVID-19 news are still haunting us daily. Most cities are still banning or, at the very least, imposing traveling restrictions on movement and tracing. Moving forward in year 2022, my insecurity mostly derive from (1) INFLATION and (2) COVID-19 VARIANT.

INFLATION

According to a news report of CNBC, inflation rises 7% over the past year, it is the highest since 1982. Such inflation rate of 7% and if it shows no sign of stopping, it may give a lot of pressure to or trigger the Fed to to have interest rate hiking cycle. Then more volatility in the market for 2022.

OMICRON

Omicron variant form Covid-19 quickly became the main global anxiety as infections spread across the globe. The World Health Organization said that the pandemic will not end as the omicron variant subsides in some countries. WHO further warned that the high numbers of infection will likely lead to new variant. It is clear that this pandemic is nowhere near over and uncertainty will continue looming.

NEW YEAR AGENDA

I want to tick all my new year agenda, which includes increasing my reading hours and materials to improve my career and investment skills. 

Always stick to my VISION and my investment PHILOSOPHY, which I shall reproduce below:-

Vision

1. Holding quality business for long term for a sustainable future. 

2. Creating value for company and society.

Philosophy and Strategy

1. Invest in businesses that we can comfortably understand. 

2. Invest in businesses that are reasonably valued. 

3. Invest in businesses that are consistent in generating dividends. 

4. Focus on the underlying business fundamental. 

～通往财务自由的心力路程～

PERFORMANCE

“A picture speaks a thousand words.”

My performance for the past 21 months.

My TOP 5 performance stocks

My BOTTOM 5 performance stocks/counter

Overall, my portfolio performance currently in the uptrend since its inception in May 2020.

The coming 1st of February 2022 will be Chinese Lunar New Year. To those who celebrate Lunar New Year, like me, HAPPY LUNAR NEW YEAR 2022. The year of tiger.

Stay safe.

MNMLH
20.01.2022

TAKE NOTICE that the above memo is by no means a recommendation or a solicitation or expression of views to influence you to buy or sell any stocks. The above memo is just my sharing on what I am doing with my portfolio and my thoughts along my investment journey since May 2020 for my future records and reflection usage.

[INVESTMENT] MEMO - 24.12.2021

MERRY CHRISTMAS, everyone!

Nothing much to update on my side. The market will continue to be volatile until there are some certainty or clarity on Omicron variant. The next thing we need to look into (in terms of macro economy) is the geopolitical tension between China & USA and also the growing concern of USA & Russia.

What I have been worrying previously is now crystallizing - INFLATION hike. The US Federal reserve hinted multiple interest rate hike last Wednesday and impliedly admitting the scary super inflation.

As a long-term investor, I know that my investment return can be higher in a single year and maybe slow or even negative in another year. However, in a long period of time, if I invest in the right company and right method, it is high probability that I will have a reasonable and decent returns. My expectation of investment return has to be reasonable and decent. 

In a Letter to the shareholders of Berkshire Hathaway (Year 1985), Warren Buffet wrote:-

“We bought all of our WPC holdings in mid-1973 at a price of not more than one-fourth of the then per-share business value of the enterprise.  Calculating the price/value ratio required no unusual insights.  Most security analysts, media brokers, and media executives would have estimated WPC’s intrinsic business value at $400 to $500 million just as we did.  And its $100 million stock market valuation was published daily for all to see.  Our advantage, rather, was attitude: we had learned from Ben Graham that the key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.”

Further, RISK MANAGEMENT is what I have been learning and applying. I like what the author, Peter L. Bernstein, said in his book ‘Against The Gods: The Remarkable Story Of Risk’, which I quote;-

“So we pour in data from the past to fuel the decision-making mechanisms created by our models, be they linear or nonlinear. But therein lies the logician's trap: past data from real life constitute a sequence of events rather than a set of independent observations, which is what the laws of probability demand.[...] It is in those outliers and imperfections that the wildness lurks.”

PORTFOLIO PERFORMANCE 

My Portfolio performance is doing good for the month of December 2021. Solely for the month of December 2021, my portfolio performance is up 3.62%. Overall, my portfolio performance currently is up at 27.11% since its inception in May 2020.

Merry Christmas! Stay safe.

MNMLH

24.12.2021

[APPLE PROJECT] Performance as of 17.12.2021

PERFORMANCE

Since the inception of this fund in September 2021, this fund is up 20.7%. Overall, this fund is above the S&P 500 which stands at 5.08% and also the Dow Jones Index which stands at 2.95%.

[TRAVEL] KAYAKING Adventures ft. Kelvin, Tomi & Oscar - Semadang Advencture - Kuching, Sarawak

 

[INVESTMENT] MEMO – 22.11.2021

"Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future"

~Alibaba chairman and CEO, Daniel Zhang~

Hello! Not much update for this month of November 2021. Last week, I added my position in ALIBABA. Reasons will be given below.

ALIBABA

$BABA (Alibaba) released its quarterly results last week and below are the earnings highlight:-

 Revenue was RMB200,690 million (US$31,147 million), an increase of 29% year-over-year (excluding the consolidation of Sun Art). Aggregate revenue of its international commerce retail and international commerce wholesale was RMB15,092 million (US$2,342 million), an increase of 34% year-over-year. Cloud computing revenue was RMB20,007 million (US$3,105 million), an increase of 33% year-over-year.

 Annual active consumers (“AACs”) of the Alibaba Ecosystem across the world reached approximately 1.24 billion for the twelve months ended September 30, 2021, an increase of approximately 62 million from the twelve months ended June 30, 2021. 

 Income from operations was RMB15,006 million (US$2,329 million), an increase of 10% year- over-year due to a RMB15,690 million decrease in share-based compensation expense related to Ant Group share-based awards granted to our employees. The year-over-year decreases were primarily due to increased investments in key strategic areas that have exhibited robust growth in operations, as well as support to merchants. These investments in key strategic areas within our commerce segment, such as Taobao Deals, Local Consumer Services, Community Marketplaces and Lazada, increased by RMB12,575 million year-over-year. 

 Net income attributable to ordinary shareholders was RMB5,367 million (US$833 million) and net income was RMB3,377 million (US$524 million). Non-GAAP net income was RMB28,524 million (US$4,427 million), a decrease of 39% year-over-year.

 Diluted earnings per ADS was RMB1.97 (US$0.31) and diluted earnings per share was RMB0.25 (US$0.04 or HK$0.30). Non-GAAP diluted earnings per ADS was RMB11.20 (US$1.74), a decrease of 38% year-over-year and non-GAAP diluted earnings per share was RMB1.40 (US$0.22 or HK$1.68), a decrease of 38% year-over-year.

 Net cash provided by operating activities was RMB35,830 million (US$5,561 million). Non- GAAP free cash flow was RMB22,239 million (US$3,451 million), a decrease compared to RMB40,540 million in the same quarter of 2020, mainly due to a decrease in profit as a result of our increased investments in key strategic areas.

Alibaba cited a "regulatory environment that affect Alibaba's business operations" and "privacy and data protection regulations and concerns" as some of the uncertainties it was facing

AFTERMATH

After ALIBABA reported disappointing quarterly earnings, Alibaba dropped 10.7%, the steepest decline since its listing in Hong Kong $9988.HK (Alibaba Group Holding Ltd (Hong Kong)) in November 2019. The fall in Hong Kong followed a similar plunge on Wall Street. According to CNN, so far this year, Alibaba's stock has dropped 40%, wiping about $234 billion from the value of the company. 

WHAT I SEE / LIKE

1. Alibaba's giant cloud business continues to post impressive results. Revenue rose 33% from a year ago for that unit. Alibaba Cloud has helped the company expand beyond China to South East Asia region.

2. The disappointing earring was mainly due to slowdown in consumer spending and also the uncertainties of regulatory crackdown. In the short term, Alibaba’s regulatory headwinds maybe temporary.

3. Alibaba is still the leader in Chinese e-commerce, payments and fintech, and the cloud. Given the long term growth prospects of China and its rising middle class, coupled with the its investment in their domestic consumption, globalization and cloud computing for sustainable growth, I still think it is safe to see Alibaba to grow steadily in the years ahead.

MY UPDATE

With the negativity in Alibaba's earnings and the plunge of its share price, I wanted take this rare opportunity to add more position in ALIBABA. Last week, I have added significant position in Alibaba. 

PORTFOLIO PERFORMANCE 

Portfolio has been flat staying for the month of November 2021. Solely for the month of November 2021, my portfolio performance is up 0.96%. Overall, my portfolio performance currently is up at 34.17% since its inception in May 2021.

Stay safe.

MNMLH

22.11.2021