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I regard alibaba's one of the worst mistakes I ever made so every time manga speak the media will be all over him because he puts the sea in controversial if you get what I mean so this time it's no different come to think of it at 99 years of age Charlie manga is still as tenacious and aggressive as ever so there was a broad range of topics that were covered during the Daily Journal shareholder meeting just some time back from crypto being crap to byd being better than Tesla and of course Alibaba being one of his biggest investing mistake of his time so let's cut to the chase Alibaba is still by far the biggest position in my personal portfolio and I still remain a huge Bull and to keep this discussion productive I'm just going to outline my own interpretation of Charlie manga's thought process and probably the framework when he made that comment so I will try not to inject my own opinion or even my own commentary in this entirety of the video itself so there will probably be a follow-up video on my honest thoughts about Charlie manga's comment but let's just keep this video clean so remember to stay subscribed and hit that cute little like button now I just wanted to make sure that you have all the tools needed to study the market at your disposal currently we are in the earning season many companies are reporting earnings left and right and with MooMoo you can easily keep track of your favorite company's earnings here's how log into your account via the MooMoo app go to markets earnings reports and you'll be able to keep track of the entire earnings calendar in the upcoming weeks or so so if you would like to learn more you can tap on to the specific companies that you are interested in Click into financials and you'll be able to see a breakdown of the recent results call transcript and even opinions from fellow investors on their innate Mumu platform so for those of you who have yet to sign up for a Momo SG account I don't know what you're waiting for so you can use my link in the pin comment Down Below on top of that if to subscribe hundred dollars into Mumu Cash Plus account you can get 20 worth of cashback two dollars for 10 days straight besides that you can also deposit at least 2 700 Singapore dollars to receive up to a free Apple share so don't let this sweet deal get away so easily so for my us and Australian viewers Momo is also running aggressive reward campaigns giving out free stocks as well so just make sure you click on the correct link below so thank you Mumu for sponsoring this video now let's get back to Charlie manga let's first see what he has said during the shareholders meeting another question comes in from uh Brandon McKee he's also asking about some of the situations with Alibaba he said how should investors View geopolitical events in regards to their investment in foreign countries how do you look at the situation of the recent Chinese spy balloon in regards to the Alibaba investment well of course it was a very interesting thing Jack ma was a dominant capitalist in Alibaba and one day he got up and made a public speech where he basically said the Communist party is full of Milwaukee they don't know their assemblerable there's no damn good and I'm smart and of course the Communist Party didn't particularly like his speech and pretty soon he just sort of disappeared from view for months on end and now he's out of byd it was pretty stupid it's like poking a bear in the nose with a sharp stick it's not smart and and Jack ma Got way out of line by popping off the way he did to the Chinese government and of course it hurt Alibaba and but I regard alibaba's one of the worst mistakes I ever made in in thinking about Alibaba I got Charmed with the idea of their position on the Chinese internet I didn't stop to realize there's still a goddamn retailer it's it's going to be a competitive business the Internet it's not going to be a Cakewalk for everybody so I think it's pretty rejuvenating to hear from one of the investing Legends admit to his own mistake despite being in this trade for more than 60 years now so like many Alibaba backholders myself included by the way who have all came to accept Alibaba as the Fang equivalent of China so if possible I would throw in tencent and France into the mix as well that's it I think all these Chinese tech companies all pretty much lie on a spectrum so the emphasis here that was pointed out by Charlie manga was how you evaluate the business economics of Alibaba at the end of the day on one end if it's closer to a retailing business it's going to be hell of competitive and we have clearly seen how Alibaba is Bucking Under Pressure over the last two years so numbers from their financial reports don't lie on the other hand you also cannot simply just write off the internet aspect of all these different tech companies which spawn out many other business verticals like and financials Etc and some of you might call it it's essentially a kind of business that spawn other businesses so depending on where you see Alibaba on this business Spectrum as an investor you will then ascribe the relevant multiples you are willing to pay for the business itself if it's a retail business it's a much lower multiple so manga has then also subsequently realized that not only is the retail business competitive the internet part of the business is equally tough if not even tougher to compete so in this regard manga admitted that he was Charmed by alibaba's dominant position in the Chinese internet Market which also had him overestimating the future returns from Alibaba so I think the bigger lesson here it's not necessarily whether Alibaba was a mistake or not it's really the idea of whether you are able to accurately grasp the value of the underlying business and in this case manga has considered that he has made the wrong assessment which explains the biggest mistake command that is made in the shareholders meeting so here comes the interesting part based on daily journals Q4 filing last year Alibaba still take up 15.2 percent of the portfolio so it might have been the case that manga has already sold the Alibaba position prior to the meeting or he might still be holding on who knows time will tell but if manga is clearly admitted to his mistake but continue to hold on to this Alibaba position what does this tell you as a bystander Suncoast fallacy he doesn't believe what he has said or whether he still thinks that there is still value in today's price but his entry might have been a little bit too early and a little bit too heavy due to the wrong assessment of future cash flows so just some food for thought now the second part of his comments political events in China over the last few months affected your thinking on the country several people including me were taken aback by the forceful withdrawal of former president hujin Tao at the October 22 annual Congress president XI seems to have Consolidated power and his actions have indicated that he thinks very very differently about the role of business in Chinese Society well I I have more optimism about the leader of the Chinese party than most people do no he's gonna walk right to end and you know he would let a big anti-corruption Drive he's done a lot of things right so and I don't know where the this man lives where is there a place where the government is perfect in the world of stone sorrow the democracies aren't that regularly run either so it's natural to have some decisions made by governments that don't work well it's natural to have decisions in each individual life that don't work very well so I think it's quite clear that manga Still Remains optimistic and upbeat around China and the Chinese government in totality contrary to the mainstream views in the public today so I'm in the same campus manga in case you haven't realized so I think in terms of pricing Securities specifically the market have been largely efficient in trying to price in the risk of these many Chinese equities so your job as an investor is to take on the level and category of risk you are comfortable with so if you have to combine both his commands it seems to me that he still has a relatively keyed interest to stay invested in Chinese equities but have probably regretted the valuations when he first bought the stock so last but not least he talks about the tension between China and Taiwan it's coming in from Walnut Creek California who just said previously you stated that despite certain shortcomings China was generally moving in the right direction how however with the recent actions taken by the Chinese government such as capriciously punishing technology and educational companies declining to import effective coveted vaccines escalating threats towards Taiwan do you still maintain that China is a viable investment option for foreign capital or is China experiencing a similar regression as Russia has seen under Putin's leadership that culminates in the invasion of Taiwan well that's a very good question of course but but I would argue that the chances in a big conversation from China have gone down not up because of what happened in the Ukraine I I think that the Chinese leader is a very smart practical person and it doesn't Russia went into the ukrainians that looked like a cakewalk I don't think Taiwan looks like such a cakewalk anymore I think it's off the table and sat on for a long long time and I think that helps the prospects of investors who invest in China and the other thing that helps in terms of the China prospects are that you can buy the best you can buy better stronger companies a cheaper evaluation in China than you can in the United States so you're getting the extra risk can be worth running given the extra value you get that's why we're in China it isn't like we prefer being in some foreign country of course I'd rather be in Los Angeles right next to my house you know it'll be more convenient but I can't find that many Investments you know right next to my house so I think this point is pretty self-explanatory if you fundamentally believe that there is an impending Invasion around the corner it would be pretty hilarious if you still allocate Capital to these Chinese equities considering whatever transpired between Russia and the Western Bloc which didn't turn out too pretty so I don't think any event of this magnitude will happen anytime soon I could be wrong and if the facts change I will change my opinion if not do leave in the comment section Down Below on how you view manga's investment mistake so with that I'll see you in the next video but more importantly I will see you on the moon goodbye
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