Third Party Research

Alibaba Investment Case

Famous investor, Tom Russo, a long-term holder of Berkshire Hathaway and an expert on consumer brands, discusses how his original thesis on Alibaba has changed since his first purchase of stock last year. I share a link to his second-quarter shareholder letter here (his thoughts on Alibaba are on pages 6-12).

The second investor, Swiss-based Robert Vinall, is less known despite his strong track record of 19.8% annual compound return since September 2008. He bought Alibaba during the second quarter thinking that the business will not be destroyed by recent changes in regulation which are applied to the overall sector rather than just Alibaba or Jack Ma. He also discusses valuation which looks quite appealing based on his analysis. To read his first-half shareholder letter you need to register on his web-site (his thoughts on the company are presented in Part 4 which begins at about 40% of the text).