Alibaba released its earnings last week. Overall impressive set of results.
I still see it as a very good company but am starting to get conscious over its rich valuation (and the rich valuation of the overall US market) and size in my portfolio (it has more than doubled over my average price (of about USD 73 per share) and grown to about 20% of my portfolio including cash).
Therefore, I decided to sell off 40 shares (slightly less than half of my shares), at USD 171.89 per share, to take out all my capital, and pare down its size to about 10% of my portfolio.
Overall, I am very conscious of the rich valuations of the US market and am prepared to hold more cash for quite some extended period (unless really attractive opportunities arise), especially after reading Howard Mark’s latest memo “There they go again… again…” a month ago.