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Welcome back. 
Everyone to the Joseph Carlson 

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show on today's episode. 
We're going to be talking about 

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Ali. 
Baba, everyone's favorite 

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Chinese stock. 
Now I'm one of the ones that I'm

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invested in Ali Baba. 
I'm actually a content creator 

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that when I talk about stocks 
ones that I want to invest in, I

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put my money where my mouth is 
and I invested 11,000 dollars in

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Ali, Baba at an average Shear 
price of $175. 

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Now currently Ali, Baba trades 
at 86 So as of right now, I'm 

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down 50% on this investment. 
Now, I'm not the only one, 

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there's many people invested in 
Ali Baba, I hear the chatter, I 

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hear the buzz, I keep track of 
what people are invested in, and

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there's a lot of people invested
in this company because 

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initially, the investment thesis
for Ali, Baba was very 

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convincing. 
We had people like, like Charlie

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Munger a legendary investor that
piled money into Ali. 

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Baba, at a much higher, share 
price. 

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I bought in at a lower price 
than Charlie, Munger and he was 

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Missive of any of the concerns. 
You said that people were wrong 

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on China and that ultimately 
he'll be proven, right? 

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We also had people like mohnish,
pabrai pile money into this 

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investment. 
A concentrated portfolio into 

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it. 
He swapped out later on for Ten 

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Cent, but the point remains he 
remains bullish on Ali. 

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Baba. 
So you have these value 

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investors that are very 
influential piling money into 

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this company and it caused a lot
of people in the community to 

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look further at this company and
see if there's any value there. 

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Now, I did that. 
I looked at Ali Baba, I looked 

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at the investment thesis and I 
found it be a fundamentally 

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strong company, that was growing
quickly. 

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And the metrics show that it was
undervalued. 

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There is also some ancillary 
concerns, there's things going 

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on with China, but my thought 
was that those were probably 

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overblown. 
So I did follow and allocate a 

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portion of my portfolio into 
this investment and that's 

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obviously so far been a mistake.
So, I think it's time that we do

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one update on Ali. 
Baba, I think the time is long 

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overdue, and what I plan on 
doing is Breaking this down into

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two different categories, the 
non fundamentals, these are 

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things that aren't directly 
related to the company, but 

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they're things that are 
relevant, they affect the 

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company and then we have the 
fundamentals of Ali. 

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Baba. 
I'll be giving a full overview 

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of that as well, and I think 
that this will paint a very full

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picture of how this investment 
stands right now. 

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So let's go ahead and Jump Right
In. 

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Now the first thing that I'll 
mention that's quite obvious is 

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Ali. 
Baba is in a significant 

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downtrend. 
If we look at the dip finder, 

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which is a tool All available to
patrons at tracks movement of 

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companies, it shows that Ali 
Baba is down. 45% below its 

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200-day, simple moving average, 
which means that the company is 

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in a significant dip. 
It's been treating downwards and

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it's right there next to 
companies, like Spotify, which 

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is also in a significant dip. 
And it's Facebook, which again 

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is also in a significant dip, 
it's around 50 percent down from

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Saul time highs. 
So Ali, Baba isn't the only 

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company. 
Of course, being sold off right 

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now, but it is a very 
significant Off and being down, 

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45% below your 200, a moving 
average. 

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That means there is an 
incredible amount of negative 

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momentum in this company. 
That's also Illustrated through 

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the stock price. 
Check this out, this is Ali 

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Baba, stock price all time, it's
down seven point six five 

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percent from IPO. 
So, I peeled back in, let's see,

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September 19th of 2014, and if 
you would have purchased Ali 

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Baba at IPO, you would currently
be in the red. 

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If you just held the entire I'm 
the only time that you could 

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really be in the green is if you
bought in the 60s and 70s and 

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2016 and late 2015. 
So that's the only time 

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currently it's at eighty, six 
dollars a share. 

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It's just incredibly devastating
almost. 

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Every investor I have to assume 
is in the red in this company 

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probably 95% Plus or in the red 
and the majority of them that 

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purchased it, like 2018 and 
Beyond are deep in the red 40, 

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50 percent plus. 
So if you're in the red and Ali 

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Baba, In Good Company. 
There's a lot of other people in

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the same situation. 
So investors are fleeing Ali, 

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Baba. 
Another thing that we can look 

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at to illustrate, this is the 
price to sales multiple that 

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this company trades that when an
IP owed right here, you probably

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can't see it, but it says, 19 
and 20 price to sales the next 

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12 months. 
Price to sales was a 19 or 20, 

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that means, Ali Baba was trading
at a price multiplied by 20 

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times. 
Their next 12 months sales, so 

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pretty high. 
T'pel to put that in context, 

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Amazon trades a day 3.1 price to
sales. 

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So investors are paying three 
point one times their next 12 

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months sales. 
So Ali Baba was trading at a 20 

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that's came all the way down 
over the past couple of years to

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a 1.6 from a 22, a 1.6. 
Now normally you expect 

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contraction in this multiple 
over time as the company matures

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it was never going to maintain a
20 price to sales but to see it 

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contract this Massively is what 
the surprise is. 

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You think it would come down 
from a 22 maybe like a seven or 

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an eight right now you know not 
a 1.6. 

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That's a lower price to sales 
and Amazon around half. 

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So investors are selling out of 
this company and multiples are 

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Contracting. 
Now, let's go ahead and figure 

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out why. 
What's going on with this 

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company? 
Let's try to get an accurate 

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view of what the current state 
of Ali. 

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Baba is let's start off with a 
non fundamental things going on 

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right now, we have a risk of the
list. 

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Ting. 
This is probably the most recent

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event that I think has spurred a
lot of selling right here from 

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the SEC. 
We have the holding foreign 

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companies accountable act, since
Chinese companies are foreign 

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companies being listed on us 
exchanges and available on us 

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exchanges, the SEC is trying to 
say, hey Chinese companies. 

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You have to be able to give us 
all the documents and access to 

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all your accounting that us 
companies do so that us 

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investors are protected, so they
know what they're buying, they 

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know what they're being invested
in and a lot of Chinese 

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companies. 
We'll try to avoid this, they 

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won't give the same amount of 
documents, you know, this is 

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kind of a back and forth between
China and the US is the Privacy 

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issue and getting access to 
these documents. 

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Well, this was renewed when they
came out and listed five 

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companies that they actually 
plan on delisting. 

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They said the ACT requires 
foreign companies to make 

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documents available for 
accounting purposes and delist 

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them if they can't meet the 
requirements. 

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That's the basics of it. 
The preliminary list of five 

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companies that the A sec listed 
out, includes be Xin, Zhao, lab,

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hutchman, and young, China, and 
a CM. 

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So these five companies which 
are not Ali. 

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Baba are the ones that are 
initially outlined as going to 

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be the listed if they can't come
up with this information. 

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Now, just because these 
companies were listed, doesn't 

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mean that it only affects these 
companies, a lot of investors 

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took this as a signal, that Ali,
Baba and JD, and all the other 

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Chinese companies are next. 
So, even though these ones are 

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directly, Stood, disaffected, 
every Chinese company listed on 

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a u.s. stock and especially the 
big ones, like Ali Baba. 

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So this is one of the most 
recent reasons right now, why 

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Ali, Baba's being liquidated 
being sold off the risk of 

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delisting, a lot of investors 
just don't want to deal with 

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this. 
And it seems it seems as though 

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the risk of delisting is 
actually increasing over time, 

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it's not being minimized or 
going away. 

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The initial thesis I had on Ali.
Baba is yes, there's a risk of 

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delisting but that's probably 
going to subside. 

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It will Abate over Time 
investors will forget about 

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that. 
You know the relationship with 

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China will go on. 
We have so many companies doing 

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business with them like Nike and
Disney and, you know, apple and 

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so much connection with them 
already that I thought that this

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tension between listings was a 
little bit overblown. 

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Well, looks like that may 
actually be incorrect. 

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A lot of investors are becoming 
increasingly concerned about the

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risk of delisting. 
Now one thing to note on this 

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subject is there are still 
analyst saying that there is a 

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risk of delisting, but it's 
still being overblown by Market 

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to markets overreacting. 
We have Citigroup analyst Alicia

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saying the market is 
overreacting, quote, we maintain

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our view that the SEC update is 
not new news, and any real risk 

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of adrc listing will likely 
materialized by 2024 to 2025, 

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when companies failed to 
disclose the requirements 

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mandated by the SEC for three 
consecutive years. 

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So Alicia at Citigroup still 
believes that this this is an 

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over reaction. 
She believes the market is 

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overreacting And the real risk 
of a DRS, delisting Still 

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Remains very unlikely. 
So we have the risk of delisting

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and whether or not the markets 
overreacting or under-reacting, 

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either way, a perceived risk 
still affects the stock price. 

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So this is certainly affecting 
the stock price in a negative 

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way. 
Now, the next thing that I look 

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at is China's economy is 
undoubtedly, sawing every single

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piece of data, I look at is that
China's economy is it's slowing 

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down, it's not growing as fast. 
Now, there's different things 

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that we can look at, but here's 
Here's what's going on right 

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now. 
Construction and property sales 

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have slumped small businesses 
have shut because of rising 

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costs and week. 
Sales debt-laden, local 

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governments are cutting. 
The pay of civil servants. 

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Chinese Chinese economy, slowed 
markedly in the final months of 

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last year as a government 
measures to limit, real estate 

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speculation, hurt other sectors 
as well lockdowns and travel 

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restrictions to contain the 
coronavirus. 

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Also dented consumer spending 
stringent regulations on 

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everything from internet 
businesses to after-school 

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tutoring. 
These also have set off waves of

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layoffs. 
There is a compounding effect of

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a weak economy hair and I could 
go on and on about this subject 

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bond yields are completely 
slumping. 

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Real estate deals aren't 
happening in China. 

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Consumers, don't have as deep 
pockets as they do in the US and

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this does affect Ali. 
Baba, keep in mind, that Ali 

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Baba is a consumer company, 
they're heavy in the Chinese 

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market. 
So if the Chinese market is 

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slowing and people are starting 
to fill poor there, they're not 

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going to be spending as much 
money which will Effect Ali, 

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Baba sales. 
So even though this isn't 

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directly a fundamental of Ali, 
Baba itself is directly relevant

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this influences Ali, Baba's 
growth. 

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This is the market, they're 
operating in and then the last 

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thing that we can look at is 
global, tensions are rising now.

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Of course, we have Russia 
invading Ukraine. 

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This is shifted Dynamics and the
global world, right? 

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The global World Order. 
Russia has become like more of a

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pariah than they've ever been. 
The entire modern world has 

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basically said, Ed, we're not 
doing business with you, we 

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don't approve of what you're 
doing and where economically 

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attacking you. 
So that's caused an interesting 

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dynamic because China is one of 
the only rare sort of allies 

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with Russia. 
I wouldn't say that they're 

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teamed up like the, you know, 
like the UK in the u.s. right 

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there. 
Not that type of Ale, they're 

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not like Cannon, the us but they
are kind of Frenemies. 

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They like each other because 
they share in the same type of 

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economic enemies and even though
I don't think China totally 

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trust Russia or vice versa. 
Are on that, that side of 

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things. 
And I think that this creates 

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also an interesting Dynamic with
China. 

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I think the events with Russia 
and Ukraine, and the 

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relationship with China and the 
rest of the world has obviously 

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caused more tensions between 
China, and the US. 

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So even though China hasn't done
anything too dramatic, they 

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haven't made any big moves, like
invading Taiwan or doing 

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anything like that. 
Just the relationship with 

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Russia and being friendly with 
them. 

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I think has caused more tension 
with China and the rest of the 

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world. 
So, This is another compounding 

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- relationship and negative 
effect with the rest of these 

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non-fundamental stuff. 
This has nothing to do with the 

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fundamentals of Ali Baba. 
But all of this is affecting the

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stock price of Ali Baba. 
So it's important to factor in. 

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All of these have a compounding 
effect. 

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The risk of delisting Chinese 
economy is slowing right now and

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Global tensions Rising. 
It's just different things that 

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get investors uneasy about this 
stock and lead to selling so now

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that we've set the stage and 
looked at some of the 

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non-fundamental, Affecting the 
stock price of Ali. 

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Baba. 
Let's go ahead and look at some 

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of the fundamental developments 
of this company over the past 

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five years. 
First of all, we can start off 

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with the growth. 
The growth is slowing and not 

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only is it slowing? 
The growth is just slow it 

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subjectively slow, and this is a
change in the thesis of Ali 

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Baba. 
If you went back a couple years,

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Ali Baba was an investment in 
the fast-growing Chinese 

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e-commerce, Giant and fin tech 
company in the fast-growing 

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Chinese economy. 
Reading was fast-growing. 

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Now we compare this recent 
quarter to the history of Ali, 

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Baba and Ali Baba historically 
grew at rates up 30% plus look 

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at it over the past couple of 
years, it was consistently 

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growing at 30% 20%, sometimes 
they even got as high as to 70% 

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00:12:46,200 --> 00:12:49,500
Revenue growth in 1/4. 
This was a fast growing company 

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00:12:49,800 --> 00:12:52,200
and now it's slow down to rates 
of 10 percent. 

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That's a disappointment. 
And one thing that you'll find 

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is any time a company has 
rapidly decelerate and growth. 

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Typically Stock price goes down.
If there is a rapid deceleration

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00:13:03,100 --> 00:13:06,600
and growth the stock price goes 
down and the growth rate of Ali 

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00:13:06,600 --> 00:13:09,700
Baba has decelerate and rapidly.
Now, the next thing that we can 

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add to the list of fundamental 
developments is Ali Baba is 

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losing market share and they're 
losing it faster than investors 

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00:13:16,500 --> 00:13:19,500
expected investors. 
Kind of look to Ali Baba 

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initially as big Tech in China 
and as we know in big Tech in 

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00:13:23,408 --> 00:13:26,100
the u.s., they don't really lose
market, share that quickly. 

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00:13:26,400 --> 00:13:29,000
Like Amazon has kept their 
market, share apples, kept their

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00:13:29,000 --> 00:13:31,800
market share R, Google's kept 
their market share Ali. 

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Baba, is losing their market 
share and they cite Fierce 

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00:13:35,100 --> 00:13:37,400
competition. 
Competitors in China are 

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00:13:37,400 --> 00:13:40,700
evolving aggressively causing 
Ali, Baba to lose market, share 

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00:13:40,700 --> 00:13:43,900
as consumers shift from 
targeted, product searches to 

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00:13:43,900 --> 00:13:47,200
browsing an interaction Ali. 
Baba's shares of China, retail 

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00:13:47,200 --> 00:13:52,200
e-commerce Market has fallen to 
a projected 51% from 78% in 

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00:13:52,200 --> 00:13:55,200
2015. 
Now in my opinion you should 

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00:13:55,200 --> 00:13:57,700
expect market share to be lost. 
It's not like one company's 

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00:13:57,700 --> 00:14:01,600
going to keep 78%. 
Ever, but I think the rate at 

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which they're losing market, 
share is faster than investors 

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00:14:04,200 --> 00:14:06,800
expected. 
So as they're, they're also 

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00:14:06,800 --> 00:14:09,000
losing market share on top of 
Revenue growth. 

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00:14:09,000 --> 00:14:10,900
Slowing stock price is going 
down. 

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00:14:10,900 --> 00:14:13,400
Now, the next fundamental 
development we can look at is 

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that the margins are shrinking. 
Simply put if we look at the 

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operating margins or any of the 
margins of the company, they're 

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00:14:19,300 --> 00:14:21,700
shrinking and they're shrinking,
pretty consistently. 

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00:14:22,000 --> 00:14:24,300
And this again, is somewhat 
surprising to investors. 

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00:14:24,300 --> 00:14:27,200
They had Ali Baba, as a very 
consistently, high margin 

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00:14:27,200 --> 00:14:30,300
company and the margins are now 
steadily, Going down. 

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00:14:30,600 --> 00:14:33,300
So you look at this and you 
compare it to other companies 

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00:14:33,300 --> 00:14:35,000
and you think what's going on 
with the company? 

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00:14:35,300 --> 00:14:37,400
It has Revenue growth is 
slowing. 

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00:14:37,500 --> 00:14:40,300
Its losing market share rapidly 
in the margins of the company 

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00:14:40,300 --> 00:14:41,900
are shrinking. 
These are not good. 

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00:14:41,900 --> 00:14:44,300
Fundamental developments. 
Now, the next thing that we can 

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00:14:44,300 --> 00:14:48,900
look at is we have an additional
issue, which is Ali, Baba's, 

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00:14:48,900 --> 00:14:51,600
operating spend the amount of 
money that they spend on sales 

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00:14:51,600 --> 00:14:54,700
and marketing, and general 
administrative cost that's going

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00:14:54,700 --> 00:14:56,900
up, pretty rapidly. 
You can look at the chart here 

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quarter-over-quarter, every 
single quarter Ali, A spending 

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00:15:00,400 --> 00:15:02,800
more and more on their sales and
marketing, and general, 

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00:15:02,800 --> 00:15:05,000
administrative costs. 
And it's going up at an 

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00:15:05,000 --> 00:15:07,900
accelerated Pace, but the 
revenue growth, and the other 

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00:15:07,900 --> 00:15:10,900
metrics aren't following this. 
Typically, if a company spends 

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00:15:10,900 --> 00:15:13,700
more and more on sales and 
marketing, their revenue growth 

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00:15:13,700 --> 00:15:16,200
is following their growing very 
rapidly but you're seeing a 

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00:15:16,200 --> 00:15:19,800
deceleration and revenue growth 
and you're seeing an increase an

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00:15:19,800 --> 00:15:23,600
acceleration in their spend. 
So that's another thing that's 

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00:15:23,600 --> 00:15:25,700
not really good with the 
development of this company. 

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00:15:25,800 --> 00:15:27,800
Now, the last fundamental 
development that I think is 

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00:15:27,808 --> 00:15:31,100
important to highlight, is that 
At the earnings of the company, 

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00:15:31,200 --> 00:15:33,700
the earnings of the company, 
which everybody sites is the 

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00:15:33,700 --> 00:15:36,700
reason that they're investing in
the company, they cite the PE 

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00:15:36,700 --> 00:15:38,500
Ratio. 
They say it's trading at a 12 

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00:15:38,500 --> 00:15:42,400
PE, look how cheap it is. 
Ali Baba is a 12 PE and there's 

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00:15:42,400 --> 00:15:45,600
companies in the US that are 
trading at 25 and 35 PE. 

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00:15:45,900 --> 00:15:48,700
So Ali, Baba is cheap by 
contrast. 

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00:15:49,200 --> 00:15:52,600
Well, the P/E ratios based on 
the earnings per share and the 

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00:15:52,600 --> 00:15:54,100
earnings per share growth of 
Ali. 

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00:15:54,100 --> 00:15:57,900
Baba has been very slow last 
quarter, it was - which it was 

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00:15:57,900 --> 00:15:59,600
expected to be negative, but 
it's still not. 

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00:15:59,700 --> 00:16:03,500
Had to have a - EPs and if we 
even look at the recent history,

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00:16:03,900 --> 00:16:05,900
the earnings per share growth of
the company. 

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00:16:05,900 --> 00:16:09,900
If there is any has been very 
unimpressive Ali, Baba's not 

319
00:16:09,900 --> 00:16:12,900
growing their earnings as much 
as I would expect and as much as

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00:16:12,900 --> 00:16:15,400
other investors would expect. 
In fact if we look at the future

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00:16:15,400 --> 00:16:18,500
analyst, expectations of their 
earnings growth from 2022 to 

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00:16:18,500 --> 00:16:23,100
2023, it's only 10 percent, 10 
percent, earnings growth, 10 

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00:16:23,100 --> 00:16:25,800
percent earnings growth is very 
slow earnings growth for 

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00:16:25,808 --> 00:16:27,500
accompanying the stage of Ali 
Baba. 

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00:16:27,900 --> 00:16:30,100
So, if you're one of the 
investors just Inking on the 

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00:16:30,100 --> 00:16:33,300
earnings going up rapidly. 
That story might not play out as

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00:16:33,300 --> 00:16:35,000
well. 
The future expected earnings, 

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00:16:35,000 --> 00:16:38,200
growth is very moderate in my 
opinion, slow for this company. 

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00:16:38,200 --> 00:16:41,600
Now, looking at this overall, 
does this give you a better 

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00:16:41,600 --> 00:16:42,900
picture of what's going on with 
the company? 

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00:16:42,900 --> 00:16:44,500
And the reason, the share price 
is going down. 

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00:16:45,000 --> 00:16:48,300
It has slowing Revenue growth, 
in fact rapidly to celebrating 

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00:16:48,500 --> 00:16:51,100
its losing market. 
Share the margins are shrinking 

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00:16:51,100 --> 00:16:52,900
on the company. 
The operating spent is 

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00:16:52,900 --> 00:16:55,500
increasing, and the earnings 
growth leaves. 

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00:16:55,500 --> 00:16:59,000
A lot to be desired. 
Compare this against any US 

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00:16:59,000 --> 00:17:01,800
tech. 
Compared against Apple, Apple 

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00:17:01,800 --> 00:17:05,000
has very consistent margins. 
They're not shrinking Apple. 

339
00:17:05,400 --> 00:17:08,400
Apple's operating spend matches 
their business growth. 

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00:17:08,500 --> 00:17:11,200
It's not growing faster than 
their revenue apples. 

341
00:17:11,200 --> 00:17:14,300
Apples Revenue, growth is not 
rapidly to celebrating, it's 

342
00:17:14,300 --> 00:17:17,099
very consistent, right? 
The continue to have pretty 

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00:17:17,099 --> 00:17:20,599
standard Revenue growth, Apple's
earnings growth remains very 

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00:17:20,599 --> 00:17:24,200
solid faster than Ali Baba's and
you could do the same exercise 

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00:17:24,200 --> 00:17:27,300
with any other tech company or 
any company in general, if any 

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00:17:27,300 --> 00:17:29,900
company has these type of 
fundamental development Hence 

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00:17:30,100 --> 00:17:33,400
stock price is going to go down.
Ali, Baba is no exception, it 

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00:17:33,400 --> 00:17:36,200
has poor fundamental 
developments and the stock price

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00:17:36,200 --> 00:17:39,600
is going down as a consequence 
now, add onto that list, the 

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00:17:39,600 --> 00:17:42,500
non-fundamental developments 
that are unique to China. 

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00:17:42,800 --> 00:17:45,300
And I think this is where you 
get the massive sell-off. 

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00:17:45,300 --> 00:17:48,900
So these very poor fundamental 
developments in combination of 

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00:17:48,900 --> 00:17:51,400
these non-fundamental extra 
risks in China. 

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00:17:51,600 --> 00:17:54,900
I think make for this unique 
cocktail of the Steep sell-off, 

355
00:17:54,900 --> 00:17:59,500
so so far you're saying Joseph. 
This is a depressing video as 

356
00:17:59,700 --> 00:18:01,000
Shareholder of Ali. 
Baba. 

357
00:18:01,200 --> 00:18:02,700
And I know it might come off 
that way. 

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00:18:02,700 --> 00:18:04,500
I don't want to be just a 
depressing video. 

359
00:18:04,700 --> 00:18:07,300
I'm trying to give the truth 
here and accurate representation

360
00:18:07,300 --> 00:18:09,300
of what's going on. 
I'm not trying to just get out 

361
00:18:09,300 --> 00:18:11,900
the pom-poms and chair on Ali. 
Baba and say that the market is 

362
00:18:11,900 --> 00:18:14,400
stupid, right? 
It's not always the case that 

363
00:18:14,400 --> 00:18:17,900
the market is dumb, there's a 
lot of issues that Ali Baba's 

364
00:18:17,900 --> 00:18:20,600
facing. 
The question is, what do we do 

365
00:18:20,600 --> 00:18:22,700
in this situation? 
What do we do now? 

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00:18:23,000 --> 00:18:26,100
Well, I can tell you at least 
what I plan on doing personally,

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00:18:26,100 --> 00:18:29,200
I believe strongly that the 
fundamental issues with Ali 

368
00:18:29,200 --> 00:18:32,400
Baba. 
You are largely a direct result 

369
00:18:32,600 --> 00:18:35,800
of the issues in the Chinese 
economy and I think that the 

370
00:18:35,800 --> 00:18:39,200
Chinese economy and the issues 
it's facing right now, are 

371
00:18:39,200 --> 00:18:41,100
largely temporary. 
I think that they will 

372
00:18:41,100 --> 00:18:43,900
eventually get over covid and 
there's zero tolerance policy. 

373
00:18:43,900 --> 00:18:46,500
I think that travel will resume 
and I think that the real estate

374
00:18:46,500 --> 00:18:49,300
issues are facing as well, will 
eventually be resolved. 

375
00:18:49,500 --> 00:18:53,500
So, my thesis remains that the 
Chinese economy will eventually 

376
00:18:53,500 --> 00:18:57,700
recover and if that happens, if 
Chinese economy goes back into 

377
00:18:57,700 --> 00:19:01,500
growth mode, I think a Of these 
fundamentals will continue to 

378
00:19:01,500 --> 00:19:03,900
tick up words, they'll actually 
re-accelerate. 

379
00:19:04,300 --> 00:19:07,300
So this is just a game of 
probabilities and I think that's

380
00:19:07,300 --> 00:19:10,000
the way that you look at it. 
If you think there's a decent 

381
00:19:10,000 --> 00:19:12,900
chance that the Chinese economy 
will re accelerate and get over 

382
00:19:12,900 --> 00:19:13,800
the slump. 
It's in. 

383
00:19:14,000 --> 00:19:16,400
Then Ali, Baba might be a good 
investment. 

384
00:19:16,500 --> 00:19:19,900
It's at a very low price, it has
many risks already priced into 

385
00:19:19,900 --> 00:19:24,000
it and if any good news, happens
re acceleration, there's 

386
00:19:24,000 --> 00:19:26,900
probably upside to the company. 
If you think that there's a high

387
00:19:26,900 --> 00:19:30,700
chance that the Chinese economy 
will never be As fast as it was,

388
00:19:30,800 --> 00:19:32,200
it will never grow to the same 
extent. 

389
00:19:32,200 --> 00:19:35,000
It was and it will be in a slump
for like, the next decade. 

390
00:19:35,200 --> 00:19:37,400
Then Ali Baba is probably not 
the company to own. 

391
00:19:37,700 --> 00:19:40,600
It has an enormous amount of 
exposure to the Chinese economy.

392
00:19:40,600 --> 00:19:42,600
So that's the way that I look at
it. 

393
00:19:42,600 --> 00:19:44,600
I think there's still a lot of 
upside with the company right 

394
00:19:44,600 --> 00:19:48,300
now, especially how much the 
price has come down, but I also 

395
00:19:48,300 --> 00:19:51,200
know there's a lot of risk in 
this holding so I am not going 

396
00:19:51,200 --> 00:19:53,400
to be piling more and more money
into Ali. 

397
00:19:53,400 --> 00:19:56,500
Baba, I want to control the 
amount of exposure, I have to it

398
00:19:56,700 --> 00:20:01,100
and even though I'm holding my 
shares and I There is upside, I 

399
00:20:01,100 --> 00:20:03,300
realize there's still a lot of 
risk left with it, so that's my 

400
00:20:03,300 --> 00:20:05,200
thoughts overall. 
And I hope you enjoyed this 

401
00:20:05,200 --> 00:20:07,200
overview of Ali. 
Baba, if you like this type of 

402
00:20:07,200 --> 00:20:09,800
content, check out the patreon. 
There's a link in the 

403
00:20:09,808 --> 00:20:12,200
description below. 
It comes with a free trial, so 

404
00:20:12,200 --> 00:20:14,900
you're not risking anything you 
get access to a disc or 

405
00:20:14,900 --> 00:20:18,200
Community with 2,300 members. 
Now it's growing rapidly. 

406
00:20:18,600 --> 00:20:22,400
We have hours and hours of free 
content, tons of discussion and 

407
00:20:22,400 --> 00:20:24,900
you get access to Quality trim, 
which is a suite of software 

408
00:20:25,100 --> 00:20:27,400
that has things like Quantum 
insights. 

409
00:20:27,400 --> 00:20:29,300
That shows you all the 
fundamentals of a company. 

410
00:20:29,700 --> 00:20:31,500
You have the dip finder which 
shows you which companies are in

411
00:20:31,508 --> 00:20:33,800
a dip in a price surge, lots of 
fun stuff. 

412
00:20:33,800 --> 00:20:35,700
So if you're interested in that,
there's a link in the 

413
00:20:35,700 --> 00:20:38,000
description below other than 
that, I'll see you in the next 

414
00:20:38,000 --> 00:20:38,300
one.