Saturday, November 10, 2018

November Update

As previously mentioned, I am adding to Alibaba stocks till the end of the year for it to become my largest holding.

However, instead of investing my money into Alibaba Stock (BABA), I am investing into Altaba (AABA) instead.  A colleague has highlighted the differences for me. For those who may not be aware, Altaba is the remnant of Yahoo that was not sold into Verizon. It is essentially a investment holding company that holds Alibaba stock (15% of total Alibaba stock), and a few patents that Verizon was not interested in purchasing from Yahoo when it was bought over.

In light of this, especially since it has then sold its Yahoo! Japan holdings, it is essentially an alternative (ALTaba geddit) to Alibaba. The key differences are that it is valued slightly under Alibaba stock, due to the company being considered an American company, and thus having to suffer withdrawal tax should they liquidate Alibaba at any time. However, in return, one can actually hold Alibaba equity, as compared to buying it in the form of an ADR.

The idea is that if there is ever a time that Altaba liquidates its Alibaba stocks, there is a high likelihood of there being tax reliefs that will in fact make Altaba a better purchase than Alibaba.

Intending to employ more cash into other US stocks such as Activision Blizzard. Will highlight reasons why going further ahead.

11.11 is coming and I am looking to get some great deals on Lazada (Go Alibaba!)


1 comment:

  1. I just came across your blog today and I like like it. I, too, am striving towards financial independence. My focus is more income. Have a good day.
    SGX Stock Tips


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