A global powerhouse trading at a discount

If you had to choose only three to five companies to own and you had the entire world to pick from, what would they be? 

For Sam Ruiz, Portfolio Specialist at T. Rowe Price, Alibaba, despite recent regulatory concerns, would undoubtedly make his list. Not only is Alibaba the dominant tech company in China, growing at 30-40% per annum, Ruiz thinks that at the current valuation, Alibaba is also trading at a material discount, when considering the growth runway and scale for some earlier stage businesses.

“Not owning a special company like this, with that growth runway, at the relatively cheap valuation that they have, for us, is a bigger risk than owning it.”

In this video, Ruiz provides his thesis for the giant tech conglomerate and outlines why investors shouldn't exclude the company on regulatory risk alone; why the current valuation is attractive; and appraises the company's impressive growth trajectory. 

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T. Rowe Price Global Equity strategy approach markets with a high conviction strategy, seeking to invest in companies with above-average and sustainable growth characteristics. For further information, please visit their website.