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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (72405)	2/24/2023 11:46:53 AM
From: Eric Bramble	Read Replies (1) \| Respond to of 78661

You sound like Munger. Did his DJCO comments sway you ? I'm still in BABA and just forgetting about it in the meantime. I think some of the hype is dying - thanks to Munger ? - and people looking for the next big mover. BABA is way too big to expect short-term improvements in earnings. ATM, I like BABA's ability to prospect new talent. I think they mentioned a few university grants & VC - or something similar - I haven't read the 20F in a while. BABA is a whale but it's pretty stable. I think the cloud infrastructure has much bigger prospects domestically than the retailing section, so that's what I focused on. Burry probably entered on the same reason and DCA-in whilst everyone abandoned ship a couple months ago. I kinda wish it would take on a more Berkshire approach. Keeps quiet and slowly marches forward. Unless CCP says otherwise.

To: Paul Senior who wrote (72405)	2/26/2023 6:33:35 AM
From: Burryville18	Respond to of 78661

Hello Paul, Thank you for your thoughtful reply, you will find no disagreement from me with regards to the more commonplace concerns i.e. VIE structure, concerns with regards to the CCP, how CCP would perceive this or that etc...etc.. Onto more business oriented topics: While Baba has never distributed any dividends to shareholders as of this writing, they have initiated share repurchase programs in the past, even enlarging their repurchase program a quarter or so ago. Retail most certainly takes up a huge chunk of their revenue/ income per say, but I would argue that BABA's business model isn't exactly like that of most other e-commerce companies (forget about brick and mortar). They have traditionally been relatively "asset light" but admittedly are in the process of become more vertically integrated. While PDD and TikTok are indeed fighting for market share, Baba has taken initiatives to combat the aforementioned threats, specifically in the form of launching Taobao Deals, Taocaicai and other budget oriented platforms. I would also like to point towards Alibaba‘s alternative lines of business (Specifically, their cloud business). Now, I do admit that the revenue/income growth from the cloud business has not been nearly as robust as their American counterparts. But that is because the entire Chinese cloud market is still stuck in the area of fighting for IaaS market share. Once they transition into the more profitable areas of PaaS and SaaS, the picture could potentially be significantly different than what we are seeing in the current environment. Finally, in response to your final query: My position was established in 2020 or thereabouts and was not influenced by Mike Burry's recent filings. Again, thank you for your time. Sincerely, Burryville18