4 Reasons Alibaba Could More Than Triple From Here

4 Reasons Alibaba Could More Than Triple From Here

Posted On October 18, 2021 3:03 am

Alibaba has become one of the most contested companies on Seeking Alpha, thanks to its worst bear market in history, causing a nearly 60% peak decline.

According to 68 analysts, rating agencies, and the bond market, BABA’s growth thesis has weakened, but not broken.

Historically, BABA growing at 14% is worth 26X earnings, and it trades at 15.8 and under 12, including cash. It’s 41% undervalued and a classic Buffett “fat pitch” blue-chip bargain.

Over the next five years, analysts expect BABA could deliver 220% returns, or 24% annually, with 5X the risk-adjusted expected returns of the S&P 500.

Charlie Munger has invested $67 million into BABA and I’ve bought $135,000 into this Buffett-style “fat pitch” speculative opportunity because A+ rated BABA is as close to a perfect speculative deep value growth investment as exists on Wall Street. As Buffett says, “When it’s raining gold, reach for a bucket, not a thimble.”

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Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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