Charlie Munger just doubled his bet on tech giant Alibaba to $71.5 million - try these 3 China plays instead to diversify your exposure

Charlie Munger just doubled his bet on tech giant Alibaba to $71.
Charlie Munger just doubled his bet on tech giant Alibaba to $71.  

Warren Buffett is famous for getting "greedy when others are fearful."

And his right-hand man Charlie Munger isn't opposed to going against the herd, either.

Best known as Berkshire Hathaway's vice chairman and Buffett's long-time business partner, Munger also serves as the chairman of Daily Journal, a newspaper publisher with a sizable stock portfolio of its own.

In a Tuesday filing with the Securities and Exchange Commission, it was revealed that Munger's firm nearly doubled its stake in Chinese ecommerce gorilla Alibaba Group to 602,060 shares - an investment worth roughly $71.5 million.

Alibaba is by far the biggest player in China's e-commerce industry, but its shares are down almost 50% over the past year. That's in sharp contrast with the performance of its North American peers: over the same period, Amazon is up 5%, Shopify has risen 12%, and eBay has gained an impressive 28%.

Alibaba isn't the only player in the growing Chinese e-commerce space.

If you'd like to invest in the booming market, here are three under-the-radar stocks to help diversify your bet. One of them could be worth buying with your extra cash.

Pinduoduo (PDD)


Pinduoduo is a young Chinese e-commerce company founded in September 2015.

Yet in just a few short years, Pinduoduo has grown to become a major online destination for Chinese shoppers.

In Q3, average monthly active users clocked in at 741.5 million. That's up 15% over the year-ago period.

More importantly, that growth is being reflected in the financials. During the quarter, revenue totaled $3.3 billion, up 51% year over year. It also turned a quarterly profit of $254.5 million.

Despite posting solid numbers, Pinduoduo shares have tumbled more than 55% over the past six months. Given the momentum in its business, this could be a prime opportunity to buy the dip with your digital nickels and dimes.

Vipshop Holdings (VIPS)


Vipshop is an online discount retailer for brands in China. The company is known for offering popular branded products to consumers at significant discounts from retail prices.

In Q3, the number of its active customers increased to 43.9 million from 43.4 million in the prior year period.

Vipshop is smaller than Pinduoduo - and much smaller than Alibaba - in terms of customer base and market cap. But it is expanding.

Gross merchandise volume (GMV) - a critical measure of an e-commerce platform's performance - rose 5% year over year to roughly $6.3 billion in Q3..

Of course, with most Chinese e-commerce stocks continuing to be weighed down by regulatory uncertainty, investing in the space isn't easy.

If you don't want to gamble on individual winners and losers, you can always build a diversified portfolio just by using your spare change.

Baozun (BZUN)

Pavel Kapysh/Shutterstock
Pavel Kapysh/Shutterstock  

Baozun is one of the pioneers in the brand e-commerce service industry in China.

It offers a wide range of services covering all aspects of the e-commerce value chain, including IT solutions, store operations, digital marketing, customer service, warehousing and fulfillment.

From 2016 to 2020, Baozun's GMV increased at a compound annual growth rate of 49%.

In Q3 of 2021, GMV rose 48% year over year while net revenue improved 3.8%.

And recently, Baozun announced that its logistics subsidiary would be getting a $218 million strategic investment from Cainiao Network - Alibaba's logistics affiliate.

Because Chinese e-commerce stocks aren't market darlings these days, Baozun trades at price-to-sales of just 0.8.

Secret asset of the super-rich

Not every investor is comfortable with buying the dip.

And even Munger admits the overall market is 'even crazier' than the dot-com bust.

If you want to invest in something that has little correlation with the ups and downs of the stock market, you might want to consider an overlooked asset - fine art.

Investing in fine art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich like Munger.

But with a new investing platform, you can invest in iconic artworks too, just like Jeff Bezos and Bill Gates.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


More Related News

U.S. vows
U.S. vows 'big dollar' help to Pacific islands in China contest

The United States will announce "big dollar" assistance to Pacific island nations when President Joe Biden hosts a first-of-its-kind summit with their...

EXPLAINER: What's behind strained China-Japan relations
  • US
  • 2022-09-28 05:29:49Z

Japan and China on Thursday mark the 50th anniversary of the 1972 normalization of their ties, but there isn't much of a celebratory mood. Improved ties...

Chinese yuan: Currency hits record lows against US dollar
Chinese yuan: Currency hits record lows against US dollar

Major stock market indexes in Asia fell sharply also fell sharply on Wednesday.

China's offshore yuan hits record low against dollar

China's yuan hit a record low against the surging US dollar in offshore trading Wednesday, despite recent efforts by the country's central bank to shore up...

Solomon Islands tells Pacific islands it won
Solomon Islands tells Pacific islands it won't sign White House summit declaration -note

The Solomon Islands has told Pacific nations invited to a White House meeting with President Joe Biden it won't sign the summit declaration, according to a...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


  • oVirt Backup
    (2022-01-16 12:04:51Z)

    This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info:

  • Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors.

  • Really I enjoy your site with effective and useful information. It is included very nice post with a lot of our resources. thanks for share. i enjoy this post.

  • flugsvamp
    (2022-02-10 10:39:54Z)

    This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free.

  • Chiropractor sydney
    (2022-02-11 10:42:05Z)

    Hello, this weekend is good for me, since this time i am reading this enormous informative article here at my home.

  • Twitch Archive
    (2022-02-14 10:44:17Z)

    You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this...

  • Twitch Clip downloader
    (2022-02-15 09:24:01Z)

    I haven’t any word to appreciate this post.....Really i am impressed from this post....the person who create this post it was a great human..thanks for shared this with us.

  • joker123
    (2022-02-17 10:17:48Z)

    i never know the use of adobe shadow until i saw this post. thank you for this! this is very helpful.

  • Satta Disawar
    (2022-03-01 11:09:39Z)

    This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free.


Top News: Economy