Alibaba (BABA STOCK): Why Ray Dalio's Bridgewater just made a huge bet on China & emerging markets!

Ray Dalio's Bridgewater recently filed their 3Q'21 holdings and surprisingly their top investments representing nearly 15% of their public market funds, are in emerging market ETFs. Why did Bridgewater do this, and what does it mean for prospective US returns?

Link to Bridgewater's 3Q'21 holdings:

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DISCLAIMER:
This video is purely for informational and educational purposes. This is NOT investment advice. You should not treat any opinion expressed by Daniel or Unrivaled Investing as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of opinion. Daniel and Unrivaled Investing are not under any obligation to update or correct any information provided on this website or in these videos. Daniel and Unrivaled Investing’s statements and opinions are subject to change without notice.

You should be aware of the real risk of loss in following any strategy or investment discussed in this video or on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned by Daniel or Unrivaled Investing may not be suitable for you. Past performance is not indicative of future results.

At the time of this publication, Daniel and the portfolios of a limited number of family and friends that are managed by Daniel, owned shares in Alibaba and Meta.

[imranarshad]

China's interest rates are around 4-5%. If the economy slows down significantly, they can very easily lower rates and print more to support the economy. The Fed has already used all of it's ammunition whereas China can still adjust it's policies.

[ClintRusbridge]

How's Dalios Bitcoin & Gold purchases doing

[HH-pvex]

All the big boys know BABA as a business is worth a lot more than what the stock retails for now.

[chiangleon]

Hello, please tell me what you think of EL?

[innocentiuslacrim]

It is just logical that funds are moving allocations as China will most likely become soon the largest economy in the world. When you add in valuation differences it is double whammy really.

[jgonz]

I initiated a position in BABA today. Will continue adding.

[clarifyingquestions]

Doubled down on the HKG exchange or the NYSE? and does it make any difference which one?

[hambosk.]

What's the Chinese company you own which trades at below liquidation value? Why not mention it?

[angelbeast]

why would ray have 3 etfs with so much overlap?

[amkrajc]

I don't understand how baba fundamentals deteriorated... because they missed an earnings but still had growth? That doesn't add up.

[jamesz]

So what if it gets delisted, you still own their shares, just means you can’t liquidate your shares as easily as otherwise. Can probably convert it to HK shares anyway.

[filb]

Clearly shows that Dalio is putting money where his mouth is.

[michaelshipman]

What market do you own baba on and why?

[modestinvestor]

Love the price to revenue chart. $BABA seems to have a lot going for it in terms of financial ratios, earnings are also growing. Sell off appears to be over the top with it being below most intrinsic value calculations clearly now.

[tombo]

I am not American and I do not understand why the sentiment is that China is some sort of Communist country that is about to collapse. Have you been there? I have studied in China. It is an emerging market with huge middle class growth and a government that is thinking and acting very long term. The Chinese plays that are comparable with similar US plays are priced at a fraction. Therefore to me these huge bets make perfect sense. Funny is also that the people are bashing BABA and keep saying “NIO to the moon” ->???? Like you said: check the fundamentals. I agree with you on Facebook: good value. Buying growth stocks at 20x sales? I am staying far away from that with interest rates this low and looking at how they need to perform to justify those prices: it simply does not add up.

[sharonguy]

Also interest rates are higher which means they can lower them and boost their market.

[nicholasteo]

Just curious Daniel, how did you get your hands on the Margin of Safety book by Seth Klarman?

[dougprobert]

Do you have to buy Hk shares in blocks say 500 or more.

[bradleyhope]

Hi, can you please share what is the China stock trading well below liquidation value? Thank you kindly sir!!

[cuihaoify]

might be a stupid question

@ 5:06, it shows the average S&P 500 P/S ratio is around 3.14

@6:36, it shows the Baba P/S ratio is around 2.9, which is not *that* much lower than 3.14?