Birkoa Newsletter 32 (complementary)
Dear Birkoa LPs:
Something I thought complemented yesterday's letter exceptionally.
Yesterday, I had said in my newsletter that
"..Remember, the rest of the world is only awakening to this changed world order that my strategy has been preparing and positioning for a very long time. While others will continue to be caught by surprise at this changing world order and readjust, we will lift off considerably going forward."
This report today signifying what I meant as it related to China at least was precisely what I had in mind. It said, among other things -
"The flow may be signaling a shift in sentiment among foreign investors who have been notably absent while China's markets and economy roared back to life after Beijing abruptly lifted its stringent zero-COVID policy in December."
The primary driver in the article is what I had mentioned yesterday would prove to be a major catalyst to this splurge in Chinese tech, especially Alibaba - the news of its breakup. We were among the earliest to bet on China and now all major investment banks have turned bullish on it, with Goldman Sachs stating another 20% upside this year just to the overall index. As foreign investors come back to Chinese stocks, that'll further levitate stock prices very significantly, particularly the ones we own. This is part of what I meant by we were in the 25th percentile of Chinese upside currently.
This is precisely why I think any fresh capital could benefit tremendously from Birkoa's positions since there's just so much to go. With our thesis proving right and others catching up, our Chinese holdings could really take off further to the next level.
Remember the Warren Buffett phrase I've used before -
"First comes the innovator, next comes the imitator, and then the idiot."
We were the innovators having gotten in among the earliest last year, and now the imitator phase is just beginning. So much more to go it should make you very excited about what's likely to come!
Sincerely,
Pranjit Kalita
CIO