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I don't know if I've gone blind.
I'm hoping you can help me and 

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see if this is, this is real. 
I I'm very confused here. 

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I see the name Ali. 
Baba and I also see green on the

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chart and to me this is just a 
bit shocking, I don't know if I 

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like typed in the wrong holding,
is there another Ali Baba that 

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I'm not aware of? 
That's a US company. 

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Because so far, this companies 
in the green and that's not the 

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Ali Baba that I know if I click 
on the past five days, it's in 

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the By 19.4% this has to be some
kind of some kind of joke. 

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Am I being you know it my under 
some some TV show here is 

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somebody hacked my internet 
because I'm seeing Ali Baba in 

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the green by 20 percent over the
past five days I look at the 

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past month we're still in the 
green over a 30-day period 

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albeit. 
Not as much seven. 

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Point, eight four percent but 
this is a pretty good rally over

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the past 10 days. 
It was up 53%. 

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Now, let me go ahead and zoom 
out. 

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Six months here. 
All right. 

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Now this is the Ali Baba that I 
remember down 21%, over the 

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trailing six months. 
All right, so I know that I'm 

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looking at the right company. 
Now, of course, we're going to 

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be looking at Ali Baba. 
We're going to be talking about 

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their new share buyback. 
Raise they raise their share 

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BuyBacks from 15 billion over 
the next two years to 25 billion

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over the next two years. 
Now, 25 billion is a lot of 

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money in share. 
Buybacks in a two-year period 

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for a company with 270 billion 
dollar market cap. 

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That is a substantial amount of 
share BuyBacks, so we'll be 

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discussing that news. 
We're also going to be 

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discussing the news of the 
Chinese government somewhat 

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signaling that they're becoming 
a little bit more clear and 

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transparent with the 
regulations, they don't want 

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them to go on forever. 
Overall this was very bullish 

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news to investors so we'll be 
going over that as well and of 

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course we're going to be going 
over. 

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JP Morgan saying that Ali, Baba 
is quote an investable for the 

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next. 
Six or so months. 

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So I'll get my reaction to that 
news as well. 

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So we have a lot of news to 
cover today and we're also going

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to be talking about my portfolio
called the story fund. 

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This is something that I 
transparently track every single

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week week by week so you can 
follow them for free. 

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I invested a lot of fast growing
high quality companies with huge

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total addressable markets that I
think, will compound their 

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earnings, their free cash flow 
and their growth over a long 

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period of time. 
And I believe that these 

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companies have a strong 
potential to be able to 

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outperform the S&P 500, which I 
Every single week I do have a 

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significant holding in Ali, 
Baba, and I'm certainly in the 

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red on this company. 
So all of this is coming from 

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the perspective of someone that 
is invested in Ali, Baba and 

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bullish and Ali Baba. 
Now let's go ahead and Jump 

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Right In First by me saying that
Ali. 

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Baba's a company that I've 
always looked at that has a 

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great deal of risk and that has 
to be something that you 

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consider if you're ever 
considering investing in a 

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company like this Ali, Baba has 
country risk, what I would 

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Define I am as country risk are 
risks specific to investing in a

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specific country. 
I think that the US has very 

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little country risk. 
Meaning the system in the u.s. 

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is pretty straightforward, we 
allow capitalism to flourish the

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government. 
Use usually is not an issue, 

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they don't usually break 
companies apart. 

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All that often, they've even let
our big tech companies grow to 

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enormous sizes. 
So overall, I just view the u.s.

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is having very minimal country 
risk. 

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In fact, I think it's the best 
country to invest in one. 

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Ali Baba, the company's great 
but it's in a country of China 

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and China has a lot more country
risk. 

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They have a government that so 
far has been more unpredictable.

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They've been more Hands-On with 
their Investments. 

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They find the companies they get
seats on the boards of the 

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companies in the kind of oversee
them and control them and it's a

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country that were economic foes 
with. 

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So we are very competitive with 
them, from the u.s. to China. 

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The tensions are kind of tough 
between the two Countries, 

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there's nothing going on with 
Russia and Ukraine and entire 

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war. 
And China is more on the side of

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Russia than the US. 
And so, it creates specific 

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country risk and I realize that 
investing in this company. 

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Now, having said that, I think 
it's okay to invest in companies

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like Ali Baba, as long as you're
aware of the risks and you 

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portion the size of your holding
to a segment of your portfolio. 

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So I personally would never 
invest 90% of my portfolio in 

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Ali Baba. 
I think that there's too much of

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a specific risk. 
I am fine investing. 10% of my 

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portfolio. 
That's a risk. 

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I'm willing to take. 
Now, having said that there's 

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been some decent developments 
with Ali Baba over the past few 

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months. 
We have some major news like 

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this news right here, the 
Chinese government came out and 

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so far. 
Everything up, until now has 

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been crackdowns finds right? 
Sometimes crushing businesses, 

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like the Chinese companies that 
were trying to do tutoring, the 

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Chinese government didn't like 
that. 

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They also put regulations on how
much kids could play video games

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or watch. 
Ouch Tick-Tock, or play 

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different games on tencent. 
Write these things that were 

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viewed as very bad for Chinese 
equities, very bad for 

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investors. 
Then there's also concerns about

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the vi e structure and if 
they're going to honor that type

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of relationship, or if they'll 
just scrap it, if they will 

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delist the equities from China 
in the u.s., you know, there's 

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all these surrounding concerns 
that aren't really fundamental 

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with Ali Baba, but they do 
affect the stock. 

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Then China came out and said 
this in a brief statement 

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carried by the state media. 
China's top Financial A policy 

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body vowed to ensure stability 
in the capital markets, support 

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overseas stock listings, resolve
risks around property developers

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and complete the Crackdown on 
big Tech quote as soon as 

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possible. 
You gank governor of the 

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People's Bank of China followed 
with a statement saying that the

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central bank would help 
implement the policies as did 

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the banking Watchdog. 
So that statement was a huge 

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change in tone from the Chinese 
government. 

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One moment, they're saying, hey,
we are cracking down on all 

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these big tech companies. 
Us. 

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The government has control. 
Not these guys. 

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We're not going to be like the 
US where where the big Tech 

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controls everything. 
They bribe the government. 

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They can kick the president off 
of their platform. 

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Right in China, the Chinese 
government has control, not big 

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tech companies, like Ali Baba, 
that was the tone that they were

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taking and that frightened, a 
lot of investors. 

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Then they come out with this 
statement saying we're going to 

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be more supportive of these 
Holdings overseas. 

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We're going to finish this Tech.
Crackdown we don't really have a

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problem with these companies. 
We just want to regulate them, 

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right? 
It's just a change in tone. 

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And a lot of investors, look at 
what the Chinese government is 

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signaling and they gauge that on
whether or not it's risky to 

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invest. 
After they released a statement,

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the stock price went up like 
17%. 

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So obviously had a pretty big 
impact now whether or not you 

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really trust or don't trust the 
Chinese government, I don't 

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think as the big question here, 
I think the big question is, 

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what is their incentive? 
So when I look at the Chinese 

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government, I don't trust him at
all. 

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It is a, you know, a government 
not like the u.s. they can 

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really do whatever they want. 
They have no. 

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Leti so I don't trust the 
Chinese government but what I do

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trust is basic incentive. 
I don't think the Chinese 

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government has a strong 
incentive to crush their biggest

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companies to make them not 
profitable. 

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I don't think they have much 
incentive to not do any business

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with the US. 
I think they're strong incentive

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to the opposite of that. 
I think they need their 

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companies to do. 
Well, they need them to be 

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competitive but they still want 
to regulate them during that 

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process. 
So to me, this isn't an issue of

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trust, it's an issue of 
incentive. 

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The next news that we have, is 
that Ali Baba is upping their 

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share BuyBacks to 25 billion. 
This is from The Wall Street 

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Journal here. 
They say that Ali Baba boosted 

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its share buyback program to 25 
billion from 15 billion in a bid

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to reassure investors about the 
company's prospects. 

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After your much, the stock has 
fallen. 

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The potential BuyBacks are 
substantial compared with the 

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Chinese e-commerce giant market 
value. 

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So 25 billion dollars of 
BuyBacks. 

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For a company, the size of apple
or Microsoft is like it's like, 

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Nothing like a little drop on 
the pond. 

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But when you're doing 25 billion
of share Buybacks in a two year,

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period, the size of Ali, Baba, 
that is a substantial by back to

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put this in perspective, if we 
look at what they're actually 

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doing with their finances. 
Here Ali, Baba, generates a 

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significant amount of free cash 
flow. 

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They are a profitable company 
and they're taking a lot of 

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those profits to limit their 
amount of shares. 

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They're buying back their 
shares. 

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And if they buy back, 25 billion
of 270 over the Of a two-year 

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period. 
That means that they're buying 

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back roughly speaking. 
A little over nine percent of 

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their market cap over a two-year
period 9% of their market cap 

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bought and purchased just by the
company in the next two years. 

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So, another way to view this is 
Ali Baba. 

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Could with this money announced 
that they're paying a four and a

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half percent dividend yield 
over. 

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The next two years, you just get
a four and a half percent yield.

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That would be roughly. 
The same thing. 

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Of course, they're not doing 
that they're doing share. 

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X. 
And the reason why they're doing

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this share buyback is probably 
because they consider the stock 

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to be relatively cheap by every 
metric. 

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It seems to be cheap. 
They said, the 67 percent 

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increase in Firepower, allocated
for BuyBacks was quote, a sign 

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of confidence about the 
company's continued growth in 

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the future and we have Citigroup
are seeing the analysts said the

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enlarged buyback plan was quote 
likely, the largest share 

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repurchase program ever. 
In China's internet sector and 

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suggested Ali. 
Baba's management viewed at 

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stock is undervalued and 
Attractive. 

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00:09:30,500 --> 00:09:32,100
So citigroup's guess here is 
that Ali. 

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Baba's, doing these share 
BuyBacks to probably promote 

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confidence in the stock, which I
think it does. 

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Plus they view the stock is 
undervalued. 

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So they're buying back 
undervalued shares. 

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00:09:41,500 --> 00:09:44,500
Now, I think the reason that 
companies like this typically do

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share BuyBacks, and so many 
companies do them is quite 

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00:09:47,800 --> 00:09:50,500
obvious. 
If you look at the way that EPS 

201
00:09:50,500 --> 00:09:53,300
is calculated, the earnings per 
share of the company. 

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00:09:53,500 --> 00:09:56,900
The main thing that drives 
valuation of these companies is 

203
00:09:56,900 --> 00:10:00,900
the earnings per share because a
PE ratio is the price compared 

204
00:10:00,900 --> 00:10:03,200
to the earnings per share. 
If you look at the EPS 

205
00:10:03,200 --> 00:10:06,800
calculation, like we've seen its
the net income, over the 

206
00:10:06,800 --> 00:10:09,200
earnings per share. 
When a company does share 

207
00:10:09,200 --> 00:10:12,300
BuyBacks, they reduce the amount
of shares outstanding. 

208
00:10:12,500 --> 00:10:15,500
So, the net income is / less 
shares outstanding, which makes 

209
00:10:15,500 --> 00:10:19,100
the earnings per share greater 
and we can see this happen over 

210
00:10:19,100 --> 00:10:22,600
and over again and US firms. 
It is a very common practice 

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with companies that generate 
extra Capital. 

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00:10:25,300 --> 00:10:28,600
We have Google as an example, 
look at Google's shares 

213
00:10:28,600 --> 00:10:33,200
outstanding over time, Back in 
2018, they had 695 million 

214
00:10:33,200 --> 00:10:36,200
shares outstanding and every 
single quarter since then, 

215
00:10:36,300 --> 00:10:39,500
they've aggressively bought back
more and more shares doing share

216
00:10:39,500 --> 00:10:42,900
repurchases. 
Now, they have 662 million 

217
00:10:42,900 --> 00:10:45,400
shares outstanding. 
Well, that means that they're 

218
00:10:45,400 --> 00:10:47,100
doing share BuyBacks. 
They're lowering their share 

219
00:10:47,100 --> 00:10:50,500
count, which has the effect of 
increasing their earnings per 

220
00:10:50,500 --> 00:10:52,100
share. 
And you can see Google's 

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00:10:52,100 --> 00:10:54,700
earnings per share, go up 
dramatically over the past two 

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00:10:54,700 --> 00:10:56,700
years. 
Now, it needs to be said that, 

223
00:10:56,700 --> 00:10:59,600
of course BuyBacks are not the 
only reason companies grow. 

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00:10:59,700 --> 00:11:02,000
Their earnings per share just 
one effect. 

225
00:11:02,000 --> 00:11:05,100
They also grow at just by 
growing their net income, so the

226
00:11:05,100 --> 00:11:07,600
company becomes more profitable,
the earnings per share will grow

227
00:11:07,600 --> 00:11:10,000
as well. 
But the buyback is oftentimes, a

228
00:11:10,000 --> 00:11:12,400
key ingredient in growing the 
earnings per share. 

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We could also look at the 
example of dominoes here, 

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dominoes is another company that
both grows its net income. 

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This is the net income growth 
over the quarters, right 

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quarter-over-quarter. 
They're growing at over time, 

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but they not only become more 
profitable and grow their net 

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income. 
They're also using their free 

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cash flow to buy back shares and
you See the share count 

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declining over time and both of 
these that increase net income 

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and the declining shares 
outstanding, of course, grow 

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their earnings per share, and 
Domino's has been extremely 

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effective at growing, their 
earnings per share. 

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So I view, this is a very common
practice amongst us companies. 

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And I think that in the 
situation of Ali, Baba, it's 

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probably positive news because 
if you think, the stock is 

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heavily undervalued right now, 
which it is based on every 

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fundamental level. 
The only real risk is Is country

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risk with China, but if the 
stock is heavily undervalued, 

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you want the company to be 
buying back, the shares at 

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undervalued prices. 
Now, we wouldn't want Ali Baba 

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to be buying back their shares. 
If the stock price was heavily 

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overvalued the company had a two
trillion dollar market cap in 

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the price was just through the 
roof because in that case, it 

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would probably be a waste of 
money. 25 billion dollars, 

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doesn't go a long ways when 
you're buying a two trillion 

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dollar company, but in the 
scenario that Ali Baba's in 

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right now with their stock price
heavily, Because of all the 

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surrounding news, I think that 
this is a great time to be doing

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share, BuyBacks there, ever 
going to be doing share, 

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BuyBacks aggressively right now 
is probably a good time for it. 

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So I am very bullish on this 
news. 

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I think it's good for investors,
good for shareholders. 

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I think that it's probably the 
best thing to Ali Baba could be 

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doing. 
Now, the other news that I 

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wanted to respond to, was this 
big news right here from 

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JPMorgan analysts they say that 
after this big sell-off Ali, 

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Baba is now an investable. 
That's what they say for the 

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next 6 to 12 Twelve months. 
In fact, if we read from the 

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actual report JPMorgan analyst, 
Alex? 

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Yeah, says they doubled 
downgraded Alibaba. 

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Group Holdings to underweight 
from overweight with the price 

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target of 65 down from their 
previous price target of 180. 

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So, just to get this straight 
Ali, Baba to them was a by, for 

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the past six months, they said 
buy this stock, buy this stock, 

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but then the stock price fell 55
percent over the past six 

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months, all the while JP Morgan 
was saying this companies. 

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I then when it hits complete 
Rock Bottom in the past month, 

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on the 15th, they come out with 
new saying that Ali, Baba is 

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uninvested oil their words, and 
then the stock goes through, one

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of the biggest rallies of all 
time. 

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It's up 54% in 10 days. 
This is the problem, with 

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listening to analysts, they 
always follow the stock price. 

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If the stock goes down, they 
will move there by rating to a 

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celebrating, they'll say, get 
out of the stock 4, stock surges

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and priced, and it's going to 
the Moon, they'll say, Now's the

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Time to jump in after a massive 
price surge in reality. 

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You should be doing the exact 
opposite when stocks come down 

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in price and they're still 
fundamentally sound companies 

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that makes the valuation more 
attractive and it makes your 

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future expected returns higher 
and likewise, when the company 

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goes up in price and they surged
up, that's when you should be 

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more skeptical and cautious 
about valuation risk. 

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So what these analysts do in my 
opinion is in many cases, the 

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exact opposite of what investors
should be doing. 

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They follow the stock price, 
they Heavily after companies had

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a big run up and they tell you 
to sell after companies have had

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a big sell-off. 
So that's my thoughts. 

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So far on Ali Baba. 
Now moving on, I do have to give

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a quick portfolio update with my
portfolio. 

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00:14:41,000 --> 00:14:44,600
The story fund. 
This is a aggressive growth 

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Centre portfolio where I invest 
in what I consider to be a lot 

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00:14:47,400 --> 00:14:50,500
of high-quality fast-growing 
companies with huge total 

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00:14:50,500 --> 00:14:53,600
addressable markets that I think
will generate a significant 

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00:14:53,600 --> 00:14:55,200
amount of free cash flow in the 
future. 

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Now, so far this portfolio has 
struggled, it's in fact, trailed

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00:14:59,100 --> 00:15:03,100
the S&P E500, I benched Market 
against the S&P 500. 

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The story fund. 
My portfolio is the Blue Line. 

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00:15:05,600 --> 00:15:08,500
The S&P 500 is the red line. 
So, right now we're trailing the

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00:15:08,508 --> 00:15:13,400
S&P 500 by around 12%, and I 
know that doesn't look good. 

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I could try to hide this and, 
you know, try to make excuses or

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00:15:17,108 --> 00:15:18,700
whatever. 
But I'm going to show the 

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00:15:18,700 --> 00:15:21,800
outcome either way. 
Even if I end up losing against 

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the S&P 500, my goal is to 
outperform spy by the end of 

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00:15:26,200 --> 00:15:28,400
2025. 
So we're still in the early 

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endings. 
In my opinion, we have Long ways

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00:15:30,300 --> 00:15:32,400
to go. 
I still think I have a very good

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00:15:32,400 --> 00:15:34,700
chance of outperforming, the S&P
500. 

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We've already had some huge 
sell-off seen these. 

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Companies multiples have already
come way down and now they're 

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actually starting to grow. 
And I think this story will 

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00:15:43,200 --> 00:15:44,800
change a little bit with these 
companies. 

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00:15:45,200 --> 00:15:49,700
I have big bets and Netflix and 
Google and Microsoft, and Ali. 

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00:15:49,700 --> 00:15:52,400
Baba, I still am bullish on 
Spotify. 

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00:15:52,500 --> 00:15:56,200
I still have a lot of apple. 
And my biggest BET right now is 

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00:15:56,200 --> 00:16:00,000
Amazon have around 30 percent of
my portfolio in Amazon, Because 

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00:16:00,000 --> 00:16:03,300
I just see enormous amount of 
upside to this company and I 

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think it will generate a 
significant amount of free cash 

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00:16:05,500 --> 00:16:07,400
flow. 
So I still remain bullish. 

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00:16:07,400 --> 00:16:10,800
Even though right now things 
look ugly but just a month ago. 

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00:16:10,800 --> 00:16:13,500
They looked a lot uglier at 
twenty thousand dollars in Red. 

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So things can change quickly. 
So that's my portfolio so far. 

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00:16:16,800 --> 00:16:19,100
And again I'm going to be 
tracking the performance every 

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00:16:19,100 --> 00:16:21,800
single week so you can follow 
along with it for free by just 

331
00:16:21,800 --> 00:16:24,600
subscribing to the channel. 
If you want extra content, 

332
00:16:24,600 --> 00:16:27,900
exclusive videos a patreon 
community as well as investment 

333
00:16:27,900 --> 00:16:29,900
software. 
You can check out the Run. 

334
00:16:29,900 --> 00:16:31,200
There's a link in the 
description. 

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00:16:31,300 --> 00:16:33,000
Other than that. 
I'll see you in the next one.