Pinduoduo (PDD)

PinDuoDuo company logo on the smartphone hold in hands.
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Pinduoduo is a young Chinese e-commerce company founded in September 2015.

Yet in just a few short years, Pinduoduo has grown to become a major online destination for Chinese shoppers.

In the 12 months ended June 30, 2021, the company had a whopping 849.9 million active buyers. That’s up 24% from the 12-month period ended June 30, 2020.

More importantly, that growth is being reflected in the financials. In Q2 of 2021, revenue totaled $3.6 billion, up 89% year-over-year. It also turned a quarterly profit of $638.9 million.

Despite posting solid numbers, Pinduoduo shares have tumbled more than 40% since the beginning of this year. Given the momentum in its business, this could be a prime opportunity to buy the dip with your digital nickels and dimes.

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Vipshop Holdings (VIPS)

Vipshop Holdings website homepage. Vipshop Holdings logo visible on the phone screen.
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Vipshop is an online discount retailer for brands in China. The company is known for offering popular branded products to consumers at significant discounts from retail prices.

In Q2, the number of its active customers reached 51.1 million.

Vipshop is smaller than Pinduoduo — and much smaller than Alibaba — in terms of customer base and market cap. But it is expanding rapidly.

Gross merchandise volume (GMV) — a critical measure of an e-commerce platform’s performance — rose 25% year-over-year to roughly $7.5 billion in Q2.

Of course, with most Chinese e-commerce stocks continuing to be weighed down by regulatory uncertainty, investing in the space isn’t easy.

The good news? If you’re on the fence about jumping in, some investing apps will give you a free share of Vipshop or Pinduoduo just for signing up.

Baozun (BZUN)

Illustrative Editorial of Baozun Inc website homepage. Baozun Inc logo visible on display screen.
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Baozun is one of the pioneers in the brand e-commerce service industry in China.

It offers a wide range of services covering all aspects of the e-commerce value chain, including IT solutions, store operations, digital marketing, customer service, warehousing and fulfillment.

From 2016 to 2020, Baozun’s GMV increased at a compound annual growth rate of 49%.

In Q2 of 2021, GMV rose 23.3% year-over-year while net revenue increased 7.1%.

Most recently, Baozun announced that its logistics subsidiary would be getting a $218 million strategic investment from Cainiao Network — Alibaba’s logistics affiliate.

Because Chinese e-commerce stocks aren’t market darlings these days, Baozun shares currently trade at just 0.9 times sales.

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Secret asset of the super-rich

Not every investor is comfortable with buying the dip.

And many times, trying to catch a falling knife can be hazardous to your wealth.

If you want to invest in something that has little correlation with the ups and downs of the stock market, you might want to consider an overlooked asset — fine art.

Investing in fine art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich like Munger.

But with a new investing platform, you can invest in iconic artworks too, just like Jeff Bezos and Peggy Guggenheim.

On average, contemporary artworks appreciate in value by 14% per year, easily topping the average returns of 9.5% you’d see with the S&P 500.

Pour your portfolio a glass of recession resistance

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too.

Ownership in real assets like fine wine could be the diversification you need to protect your portfolio against the volatile effects of inflation and recession. High-net-worth investors have kept this secret to themselves for too long.

Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Vinovest automatically selects the best wines for your portfolio based on your goals, and it tells you the best times to sell to get the best value for your wine.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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