Warren Buffett’s Cash Pile Tops Record with $149.2 Billion on Hand

One of my idolized investors of all time, Warren Buffett, has a pretty exciting portfolio position for his holding company Berkshire Hathaway. I'm always following his latest investment move, and to my surprise, I found out that one of his largest positions is cash on hand. According to the company's earnings announcement on Saturday, Berkshire Hathaway's cash hoard topped $149.2 billion in the third quarter, exceeding a previous high established in early 2020. 

The new high came despite Buffett pouring more money into stock repurchases, with $7.6 billion in repurchases in the quarter, the third-highest total since the board modified its buyback strategy in 2018. This is an exciting topic to point out. There must be a reason why Warren Buffett is piling up cash in his portfolio instead of buying new stocks. In this article, I will talk about my opinion on why Warren Buffett is just piling cash in the Berkshire Hathaway portfolio. Moreover, I will talk about how this answers my father's large cash balances in his portfolio.

My Idol, Charlie Munger, boosts Alibaba's stake, purchases another 300K shares

This is exciting news to talk about. One of my idol investors, Charlie Munger, raised its holding by 99.3% to 602,060 sponsored American Depository Shares of Alibaba Group (Ticker: BABA) as of December 2021. He bought an additional 300,000 shares. It seems he is a huge fan of Alibaba. In this article, I will talk about his investment move when many investors are fleeing the scene. Moreover, I'm going to give my opinion on his investment purchase on Alibaba Group. As you readers know, I am heavily invested in Alibaba and planning to keep my position despite my loss.

Why I'm Going to Keep Holding Alibaba Stock

Readers following my blog know that I'm heavily invested in Alibaba stock. Since my purchase date, my Alibaba shares have been going down tremendously. Alibaba has been stuck in a perfect storm of misunderstood Chinese regulatory moves, the threat of delisting by US regulators, a slowing macroeconomic growth, a building property sector crisis, severe pandemic comps, and intense competition.
 
From my average cost, my Alibaba position has an unrealized loss of 44% (January 2022) which is approximately $315,000 of my capital. However, I'm not discouraged about my investment and keep holding my shares for a long-term play. I'm going to keep purchasing more Alibaba shares with the dividends I will receive from Pfizer Inc. (Ticker: PFE) and my rental income.
 
Yes, it's true that if I had stuck with my previous portfolio, my stock portfolio would have $1,350,000. That's approximately $350,000 difference. I learned my lesson that sometimes it's better to be diversified. Luckily, I'm not using options that have an expiry date for holding a particular stock. So even if my stock portfolio is doing poorly at the moment, I know I still can make money in the long run. In this article, I will explain why I'm going to keep holding to my Alibaba stock and why I think the fallen price is an excellent opportunity to purchase more shares of Alibaba stock.

Why Has China Become the Wealthy Country It is today

We look back on how the People's Republic of China's transition spread the extraordinary wealth - and entrenched inequality - throughout the Asian giant as the country commemorates its foundation anniversary.

"China was extremely, very poor when the Communist Party took control," says DBS China economist Chris Leung.

 

"They relied on self-sufficiency because they had no trading partners or diplomatic contacts."

 

Since 1980, China has experienced a significant poverty reduction. The national poverty rate declined from about 90% in 1981 to under 4% in 2016, according to the World Bank's $1.90 per day poverty level (in 2011 prices at purchasing power parity), meaning 800 million fewer people living in poverty.

China has implemented a series of historic market reforms to open up trade routes, and investment flows during the last 40 years, lifting hundreds of millions of people out of poverty. This is a fascinating topic to write about because I am heavily invested in Alibaba (Ticker: BABA), a Chinese company. Because of this reason, I researched why and how China became the wealthy nation it is today. This article will explain the history of poverty in China and how it has become one of the leading nations it is today. Moreover, I will explain what progress China has developed and why I want to learn Mandarin again.

Charlie Munger’s Firm Doubled Down on Its Alibaba Investment

This is an exciting topic to talk about. If you read my article, you know that Charlie Munger, a close friend to Warren Buffett, invested in Alibaba (Ticker: BABA) stock. The stock dropped significantly after his first purchase; however, he recently just doubled down on Alibaba bet.  
 
I am holding Alibaba stock (Ticker: BABA) as the majority of my portfolio. I own 3285 shares of Alibaba at an average cost of $215.45. I am still down about 18% from my average purchase cost. However, I am still confident in this company because it is an excellent value growth stock. Because I am holding Alibaba stock, I am curious why Charlie Munger doubled down on Alibaba stock. This article is going to focus on information about Charlie Munger's recent double-down purchase on Alibaba. Moreover, I am going to mention the bull and bear scenario in investing in this company. 

Alibaba is in Big Hot Sale

The stock of Alibaba (Ticker: BABA) has taken a beating this year. It started at $227 in January and is now about $160, a 30 percent drop. This is a big blow for stockholders, especially given that it happened when U.S. shares were setting record highs after record highs. China's market performance has been poor this year. The S&P 500 has gained 20.8 percent this year, while China's Hang Seng Index has lost 7.5 percent. Surprisingly, the underperformance was mostly planned. Mind you, not by the firms themselves, but by force far more robust than they are.
 
The stock market in China did not fall because of an economic slump, the COVID-19 pandemic, or anything else. They're also not down due to weak earnings—at least not in the most recent quarter. Instead, they're down due to the Chinese Communist Party's (CCP) crackdown on digital companies, which has many investors worried.
 
As you may be aware, the CCP is currently led by Xi Jinping, its most powerful leader in decades. He has been dubbed China's most powerful man since Mao and is famed for getting his way. Following his ascension to power, Jinping shook up the Chinese government to expand his control. He established working groups in which he served as the leader, and he made essential government bureaucracies directly accountable to him. The end consequence was a leader with an unrivaled capacity to achieve his goals.
 
Now fast forward to the present day. Xi Jinping is a man on a mission to resurrect and rebuild China. Moreover, he promotes the Belt and Road Initiative, a massive infrastructure project connecting Asia and the European Union. He is bolstering China's military. He's advocating the concept of the "Chinese Dream," a daring new vision for the next century in China. Overall, he is a forward-thinking leader with enormous intentions for his country.
 
China's tech billionaires appear to be excluded from Xi's goal. A speech by Alibaba's Jack Ma is said to have enraged Xi Jinping in 2020, prompting a full-scale attack on not just BABA but China's whole digital sector. Shortly after the speech, the government began implementing the policies that have sparked so much debate today, including penalties, app de-listings, and attempts to halt U.S. IPOs.

These measures are at the heart of much of the current debate around BABA. Everyone knows the company has a winning combination of growth and value, but the negative thesis is that China's regulatory crackdown will limit growth in the future.
 
It may. Chinese tech companies may grow more slowly in the future than they would have if Jack Ma hadn't spoken up. BABA's $2.8 billion penalties have already taken a toll on profits, and the CCP isn't finished enacting restrictions.
 
Nonetheless, the selloff that we've seen is unreasonable. BABA isn't suddenly valued 30 percent less because it will be subjected to regulatory scrutiny in the future. Its stock price is a typical illustration of Ben Graham's "Mr. Market" delivering a terrific business at a low price. As a result, in this essay, I'll present a bullish case for BABA, suggesting that its combination of growth and value is worth the political risk.

Is Inflation Coming? How is it Going to Affect the Economy & What You Should Do!

Recently, the Federal Reserve kept printing new money into the economy. The government did this to stimulate the economy during the Covid pandemic crisis. However, all this money printing has its side effect. Inflation is here. As with the April report, the May CPI inflation report from the Bureau of Labor Statistics (BLS) highlighted that prices rose across the board by a lot. Overall, prices in May climbed 5% year over year, the biggest such gain in the headline CPI data since August 2008. Even when you strip out volatile food and energy prices—so-called core CPI inflation—prices rose by 3.8% year over year in May.
 
Investors are spooked because rising inflation, which threatens investment and consumer spending, would need to be tamed by a rise in currently rock-bottom interest rates – and that would be anathema to markets and a corporate sector that has grown used to cheap money. Due to all this money printing, the economy is in a bubble that might eventually burst. The S&P 500 Index has risen so much recently due to all this money printing. I believe the market is overvalued, and the upcoming collapse of the U.S. economy might occur. In this article, I'm going to emphasize how impending inflation is coming and how it will affect the economy. Moreover, I will explain what I did to my stock portfolio and what financial advice I recommend.

Why Did Charlie Munger Buy Alibaba Stock

Readers probably already know that I'm heavy on Alibaba stock. Because I invested a large sum of my capital in this stock, I decided to research this company more. Charlie Munger, a close friend to Warren Buffett, has invested a large percentage of his portfolio in Alibaba stock. Charlie is a value investor, similar to Warren Buffett. Buffett has described Munger as his partner and "right-hand man."

I'm curious why Charlie Munger invests a large sum in Alibaba Group (Ticker: BABA). I decided to research the reason why he invested in that company. I'm pretty sure Charlie has a solid reason to invest in Alibaba. After all, he is more experience in investing compared to me. I want to make sure my investment in Alibaba is not a mistake. In this article, I will discuss the research I found to why Charlie Munger decides to purchase a significant stake in Alibaba stock. With this research, I can feel more comfortable investing a large portion of my money in this stock.  

Alibaba: One of the Cheap Bargains in This Market

I have been looking around in the stock market and haven't found many stocks that are undervalued. Currently, in a market full of elevated asset prices, it can be difficult for investors to find underappreciated securities on a valuation basis. I have seen stocks like Game Stop Inc. (Ticker: GME) gone up in price without seeing any fundamental value for its price appreciation. 

I have been following Alibaba Group (Ticker: BABA) for quite some time already. I have a friend who invested all of his capital in this stock when the price was $290-$300. I placed BABA in my watch list and got my attention when the cost of the stock goes down to $210-$220 level. I believe Alibaba (Ticker: BABA) is being underappreciated through the lens of both valuation and growth potential. While investors may fear regulatory risks, management stability, and financial legitimacy, BABA's growth runway coupled with discounted prices could potentially produce a valuable investment opportunity.

 

This is the reason why I sold all my other stocks in my portfolio and invested 63% of my capital in Alibaba stock. I have written an article as to why I invested a lot of my money in this stock. Because I invested a lot of my money in Alibaba Group, I decided to research this company. I want to make sure what I did was a wise investment move. In this article, I will focus more on information about Alibaba Group (Ticker: BABA) and why I think the current price Alibaba is at is great for investors to enter. 

I'm Now Heavy on Alibaba Stock

Since peaking in October 2020 at over $300 per share, Alibaba (Ticker: BABA) has lost approximately one-third of its market value. Alibaba stock price is currently trading at the $210-$220 range as of May 2021. The stock price caught my attention to take further research of the company. I became attracted to the company due to the fundamental and solid financial statement of the company.

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alibaba Health Internet platforms for pharmaceutical and healthcare products; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform.

 

On May 20, 2021, I decided to sell all my other positions in my portfolio and use the money to purchase Alibaba stock. I bought 3200 shares of Alibaba stock at $216.20, making this the most prominent position in my portfolio. As for now, my portfolio is very concentrated, holding only two stocks. I know readers might ask why I sold all my other stock positions and holding only two stocks now. In addition, Alibaba is not a stock that pays out a dividend. This is because I see an excellent opportunity that makes me decide to change my investing style. In this article, I will explain why I'm heavy on Alibaba and why I think this is an excellent investment. Moreover, I will talk about the recent earnings results, the stock setup going forward, a valuation update, and the critical risks in the investment.

Why I'm Buying More of Pfizer Inc. Stocks

My last article on Pfizer Inc. (Ticker: PFE) was back in October 2020, titled "Why Pfizer Stock is a Great Buy Now." I have Pfizer Inc. stocks in my portfolio, and it is one of my largest positions. My average purchase cost in Pfizer Inc. is about $35.25, and I own 3,975 shares of this stock, making it 14.28% weighted from my overall portfolio.

If you are not familiar with Pfizer Inc., the company develops, manufactures, and sells healthcare products worldwide. The company is responsible for the vaccine for the Covid-19 virus. The company's stock price has fallen by 7%, from the $37-38 range to the current $34.72 close on February 13, 2021. I am thrilled when I see a company I like to go down in value. This allows me to purchase more shares of the company at a discount price. This article will explain why I am purchasing more Pfizer Inc. (Ticker: PFE) stocks into my portfolio. Moreover, I believe the fallen price is an excellent opportunity for me to get a great bargain for shares of the company.   

Intel is Looking Very Interesting for Value and Dividend Investor

Intel Corporation (Ticker: INTC) has been in the news lately, and most of the news was bad. The worst news is such as process delays or perceived threats to Intel's business model. In 2020, the stock dropped by 17%, whiled the Nasdaq 100 and S&P 500 indices rose by 15% and 45%, respectively. Shares of Advanced Micro Devices (Ticker: AMD) and Nvidia (Ticker: NVDA), Intel's biggest rivals, rose by 90% and 120%, respectively. Many Wall Street analysts have written how Intel is no longer a viable investment.

I have seen Intel's stock price dropped significantly, which has made me curious about the company. I decided to do my research on Intel and discover that it is an excellent opportunity for value and dividend investors to purchase the stock when undervalued.
 
I believe that, overall, the market is too bearish on Intel for now and that the company's shares offer considerable upside potential over the coming years, mainly thanks to a very low valuation. Intel also has access to very low-cost debt thanks to a strong balance sheet. In this article, I will write about what's happening with Intel stock and why it is an excellent stock to purchase for a long-term investment. The stock fundamental is very attractive, which has led me to want to invest when I have extra spare cash in my portfolio account.
 

Altria's Safe and Growing 8.5% Dividend Yield is a Great Investment Now

Altria Group Inc. (Ticker: MO) has been a stock that I have been monitoring for quite some time. I have stocks of this company in my dividend growth portfolio. Suppose you have no idea what Altria is all about. In that case, this company is an American company that is one of the world's largest producers and marketers of tobacco, cigarettes, and related products. I did a stock analysis report on this company that I have posted in this blog. When I wrote that report, its stock was trading at a $50 to $55 range. The company is recently trading in the $39 to $41 range as of (November 11, 2020). I have incurred unrealized loss for holding this company in my portfolio; however, this does not stop me from believing in this company.

 
The current price of this company is trading at now caught my attention. Altria offers investors an incredible 8.5% dividend yield at the current price. This stock has the potential for even more significant capital gains and total shareholder returns if valuations normalize. It is a strong investment opportunity, and recent price weakness presents a compelling entry point for new investors to enter. This blog post will explain why Altria Group Inc. (Ticker: MO) is an outstanding stock to invest in now. I love the high dividend yield this stock provides, and it can be an opportunity for new investors to enter. Moreover, I will also share the risk factors of investing in this company. 
 

Why Pfizer Stock is a Great Buy Now

As an investor, I have been looking around the stock market for stocks that pays out dividends and great value. I came across this company called Pfizer Inc. (Ticker: PFE) when I found out about a close friend of mine who is a value investor mentor, Chris Lee Susanto, who has invested in Pfizer Inc. as one of his stock position in his portfolio. I was attracted to this company because it was a stock that pays out dividends, but its price was trading at an attractive valuation.

Anyways, if you readers haven't heard of Pfizer Inc. (Ticker: PFE), let me introduce you to this company profile. Pfizer Inc. is an American multinational pharmaceutical corporation headquartered in New York City. In 2012, it was one of the world's largest pharmaceutical companies and ranked 57 on the 2018 Fortune 500 list of the largest United States corporations by total revenue.
 
Seeing my friend invested in this company had made me curious about the company. I decided to research my own on Pfizer Inc. and became interested in investing in it for my dividend growth portfolio. Pfizer Inc. stock has dropped 15% and climbed back to the price it was a quarter ago. It's currently trading at $37.20 (as of October 22, 2020) and yields 4.02%. 
 
After researching on my own on Pfizer Inc., I believe that this company has a potential upside. It was, of course, trading at a valuation that is attractive for many value investors. In this article, I would explain why Pfizer Inc. is an outstanding dividend growth stock currently trading at an excellent price for investors to buy. Moreover, Pfizer Inc. is a great company to invest in with or without a Covid-19 vaccine. This reason had led me to place Pfizer Inc. as my second-largest position in my stock portfolio. 

Altria: A Great Value Dividend Stock to Buy Now

Altria Group, Inc. (Ticker: MO) is a company that has been established for a long time. This company has been paying dividends to its shareholders for a long period of time and is considered to be Dividend Aristocrat Stock. Altria Group, Inc. is a well-known American company that produces and market tobacco, such as cigarettes and related products. The company headquarter is in Henrico County, Virginia, close to the city of Richmond and was founded by Philip Morris in 1847. The company sells the Marlboro brand cigarettes in the United States. They also sell non-smokeable products such as Skoal, Copenhagen, and the Ste. Michelle brand of wine. Moreover, they also have 10% ownership in global beer giant Anheuser Busch InBev. 

The stock has been going down in price due to the pessimism of the market. Most of the current worries are due to the declining volume of cigarette sales. The outcome has inevitably caused the stock value at the current price. Investors should ignore the noise surrounding their holdings and, instead, focus on the fundamentals of the company. I had been purchasing this stock since the beginning of 2018 and had been adding more additional purchases that make Altria (Ticker: MO) my 4th largest position in my portfolio. By adding more shares to my portfolio, my cost basis of Altria is currently at $52 per share. This also means that I am currently losing on this particular stock pick; however, the generous dividend multiple, steady earnings, dividend growth, and historically low valuation make it impossible for me to ignore this opportunity to add more shares into my portfolio. I believe Altria is a great dividend growth stock to purchase now despite many warning signs. Altria's current low valuation is too attractive to be ignored. This pessimism is the perfect time for value investors to initiate the purchase of this stock at the current price.