$Alibaba(BABA)$ $General Motors(GM)$ I always believed free cash flow is the best metric for evaluating stocks. Business exist to make money. If you have free cash flow, it means after you paid operating expenses and purchasing of new capital goods, you still have cash left. You made money. But nowadays this metric does not seem to work any more. BABA generated $24 billion new free cash flow in the past 12 months and yet its stock tanked to the all time low. GM had huge negative free cash flow and yet its stock is at all time high.
If you invest in a company that makes ton of money and yet its stocks tanks, what do you do? you double down. I believe that is why Charlie Munger doubled down. BABA has $70 billion cash in the bank and will generate more down the road. You can be relaxed to own this company, no matter where its stock is listed.
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