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University of California Increased Alibaba, Pinduoduo Stock Investments

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The University of California’s investments unit scooped up Alibaba and PInduoduo shares.


Greg Baker/AFP via Getty Images

A large American college method drastically amplified investments in two Chinese companies, and built other important modifications in its holdings.

The Regents of the University of California disclosed that its UC Investments unit boosted its holdings of the American depositary receipts of Chinese world wide web giant


Alibaba Group Holding
(ticker: BABA), and virtually tripled the investment decision in e-commerce agency


Pinduoduo
(PDD) ADRs in the 3rd quarter. UC Investments also took a situation in foodstuff-delivery provider


DoorDash
(Sprint), and halved its stake in


Upstart Holdings
(UPST), an synthetic-intelligence lending system.

The regents disclosed the changes in the stock holdings, between many others, in a form it submitted with the Securities and Exchange Commission. UC Investments did not reply to a request for remark. It manages the college system’s retirement, endowment, working capital, and money property, and the portfolio stands at $153 billion. An improve in the amount of shares of an equity expenditure could replicate a donation of inventory relatively than an open up-marketplace invest in,.

UC Investments’ stake in Alibaba rose by 156,400 ADRs to 462,431 at the finish of September. Alibaba ADRs slid about 37% in the initially 9 months of the calendar year as traders have nervous more than improved regulatory scrutiny in China.

Alibaba has rallied so significantly in the fourth quarter, soaring 11.4%, having said that. Before this month, the organization unveiled its have chip to enhance its cloud-computing companies. Co-founder Jack Ma reportedly traveled to Europe in October, a sign that political and regulatory pressure on Alibaba was potentially easing. Notable value trader
Charlie Munger
disclosed that his business


Day by day Journal
(DJCO) experienced doubled down on Alibaba ADRs in the third quarter.

For comparison, the


S&P 500 index

rose 15% in the initial nine months of 2021. It is up 6.9% so significantly in the fourth quarter.

The University of California improved its stake in Pinduoduo by 37,102 ADRs to stop the 3rd quarter with 50,582 ADRs. Pinduoduo ADRs ended up halved in rate in the to start with nine months of the year, but so significantly in the fourth quarter they have slipped 2%.

Pinduoduo has been prying sector share absent from Alibaba and


JD.com
(JD). Earlier this 12 months, when Pinduoduo ADRs were being now in double-digit losses for the calendar year, we prompt an options participate in on the enterprise.

DoorDash inventory was hot before this 12 months, surging 44% in the first 9 months of 2021. So significantly in the fourth quarter, the shares have slid 5.4%.

DoorDash’s newest quarter confirmed a broader-than-predicted reduction, as loosened Covid-19 limitations giving buyers a lot more choices for feeding on out, providing them less rationale to

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3 Biotech Stocks That Could Make You Richer

If you’re looking for biotech stocks that can grow in value over the long term, you shouldn’t necessarily pick this year’s top-performing biotech player. In fact, some of 2021’s laggards could present far better opportunities.

What are the important points to consider? Commercialized products and the strength of the pipeline can tell us a lot about where a biotech company is going — and whether you want to go along for the ride. These three stocks have underperformed the S&P 500 this year, but better times are likely ahead for them. That’s because they’re winning when it comes to the products they already have on the market, and look poised to keep winning with those treatments still in their pipelines.

Image source: Getty Images.

1. Vertex Pharmaceuticals

Vertex Pharmaceuticals (NASDAQ:VRTX) is known for its leading cystic fibrosis treatments, which generate billions of dollars in revenue and profit for it annually. But this biotech powerhouse is making game-changing progress in treating other conditions. And if all goes smoothly, today’s investors will reap the rewards in the long term.

I’m thinking of two programs in particular. One is Vertex’s gene-editing candidate for blood disorders. The company has reported positive follow-up data from a phase 1/2 clinical study in 22 patients. Success here could be big. That’s because its therapy might be approved as a one-time treatment for transfusion-dependent beta-thalassemia and severe sickle cell disease. The company says it may be ready to file for regulatory approval in 18 to 24 months.

Data regarding Vertex’s stem-cell-derived candidate for the treatment of type 1 diabetes also are encouraging. The first patient in its phase 1/2 clinical trial showed restoration of insulin production. Considering the limited treatment options for type 1 diabetes, this program, too, could be major for Vertex. Of course, we’re still talking about early data here. Investors and would-be investors will want to watch how these treatments’ clinical studies unfold. 

2. Exelixis

Exelixis (NASDAQ:EXEL) focuses on oncology treatments. But here’s what makes the company stand out: It has thrown its energy behind a single development program that has almost countless commercialization opportunities. Exelixis brought cabozantinib to market for the treatment of advanced renal cell carcinoma, hepatocellular carcinoma, and metastatic medullary thyroid cancer.

But it isn’t stopping there. It’s investigating cabozantinib’s effectiveness against about 15 types of cancers. And eight of those studies are in phase 3. This is promising for the revenue picture ahead.

Meanwhile, its commercialized cabozantinib products are driving revenue higher. Lead product Cabometyx’s revenue climbed by 59% in the most recent quarter. The Food and Drug Administration earlier this year approved the combination of Cabometyx with Bristol Myers Squibb‘s blockbuster Opdivo as a preferred treatment for renal cell carcinoma. That offered (and should continue to offer) the drug a significant boost.

Exelixis is profitable and revenue is on the rise. I’m optimistic the company can keep that trend going given the possibility that cabozantinib will be approved for more and more indications in the

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U.S. Tech Stocks Are in a Bubble. Time to Shop for Growth Elsewhere.

This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s.

Insights
Richard Bernstein Advisors
Oct. 29: Investors become myopic during bubbles. They believe the universe of attractive investment opportunities is small and growth can be found only in a few select sectors. As we’ve repeatedly highlighted, it is exactly that narrow-mindedness that presents opportunities because investors ignore the broad range of potential investments outside the bubble.

Today’s bubbles are following that precedent. Investors are squarely focusing on technology, innovation, disruption, cryptocurrencies, and housing, but very little else. They seem enamored with vacations in outer space and electric vehicles, yet ignore the dire need for improving U.S. logistical and electrical infrastructure.

Ironically, many equity markets around the world not known as hotbeds of innovation and disruption are outperforming


Nasdaq Composite

index so far during 2021. Our guess is most investors are completely unaware of the fundamentals supporting these markets’ outperformance.

When Will GDP Perk Up?

THINK Economic and Financial Analysis
ING
Oct. 28: It’s clear that the U.S. economy entered a soft patch in the third quarter as the Delta variant of Covid spread across the country and led to heightened caution among households. The steep declines in restaurant booking and travel were a prelude to today’s soft 3Q GDP reading. Thankfully, Covid case numbers have fallen sharply since peaking in mid-September and we are seeing a rapid rebound in the willingness of consumers to get out and about and spend money.

We are confident that the fourth quarter will experience much better growth despite concerns surrounding the rising cost of living. The combination of strong labor demand amid a dearth of supply will keep incomes rising while households have extra resources to weather this storm due to the fact that nationally their wealth has increased by more than $26 trillion since the end of 2019.

Adding in anticipated government spending on infrastructure and social policy, more corporate capital expenditure, inventory rebuilding, and the return of foreign visitors in significant numbers means we feel the economy can expand by more than 4.5% next year.

Regional Powerhouses

Economic Commentary
Wells Fargo
Oct. 28: Florida’s strong economic growth is expected to continue well into the decade. After expanding 5.9% this year, Florida’s real GDP growth is expected to outpace the nation in the next couple of years, reflecting stronger population growth and the influx of higher-value-added jobs in technology, life sciences, and specialty finance. Employers are expected to add 273,000 jobs in 2022 and a whopping 300,000 jobs in 2023. Florida’s unemployment rate is expected to average 4.2% in 2022 but end the year below 4%. The strength in employment and income growth is expected to draw more job seekers to the state, which will also continue to attract large numbers of retirees, fueling home building and commercial construction…

We expect Georgia’s economy to gain momentum this fall and in 2022. After

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Opinion: Here’s the math for Tesla’s stock price if it becomes the Apple of car makers

Fans and shareholders of Tesla are making stronger and louder arguments about the future of their favorite company. In them, they draw analogies to one of the most successful brands and businesses in the history of capitalism. They suggest that automaking may go the way of handset manufacturing and that – for Tesla
TSLA,
+3.43%

– there is a strong resemblance to the Apple
AAPL,
-1.82%

vs. Nokia/Blackberry/Ericsson/Motorola dynamic.

For those that don’t know, in the early 2000s it was unimaginable that these legacy mobile phone manufacturers could disappear. In 2006, Research in Motion (RIM), the company making BlackBerrys, lost a patent suit against NTP and a U.S. District Court judge slapped an injunction on sales. The Defense Department stepped in, claiming that a Blackberry injunction was a threat to national security. Meanwhile, industry leader Nokia held a 40% market share and by the end of 2007 sported a $230 billion market cap.

But something else happened in 2007.

Steve Jobs introduced the iPhone.

And that changed the game for Nokia, Blackberry and the entire industry, forever.

Coincidentally, Jobs introduced that iPhone seven months after Tesla introduced the Roadster at the San Francisco International Auto Show. Fast forward to 2021, and the bulls are suggesting that Apple’s overwhelming success in handset manufacturing can be mirrored in automobile manufacturing by Elon Musk’s Tesla.

For this to happen, let’s first assume that within 15 years buyers will demand a broadly similar “form factor” for any vehicle. Today, there are 250 brands of cars sold to fit all appetites and budgets, and perhaps over 1,000 trims. Meanwhile, thanks to the iPhone, handset hardware has gone from a myriad of styles, sizes and forms to basically one.

Similarly, let’s imagine that the production and value of automobiles and light trucks will become less about the style or performance that is demanded and instead mostly about the software inside the vehicle.

Finally (and this is a huge debate, but) let’s presuppose that Tesla will have better software – most importantly better autonomous driving capability – than any other vendor or manufacturer, whether in Silicon Valley, Detroit, Wolfsburg or elsewhere.

In other words, let’s assume that Tesla is going to become the Apple of automakers.

To do this, we need to ignore that Apple is not just a handset manufacturer. In the first three quarters this year, it reported over $150 billion of iPhone sales, which represented 55% of total sales. It also reported sales from the “Services” segment, which included sales from advertising, digital content, AppleCare and other lines. If we assume all that revenue was driven by the iPhone (even though not all was), then we get the iPhone representing about 65%-70% of Apple’s sales.

This implies Apple has a substantial business (about $110 billion this year) selling Macs, iPads, wearables and accessories too. So in our “Tesla is Apple” analogy, we need to assume that Tesla will make similar extensions into new products.

We also need to ignore that most of the profit

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In a market full of wild valuations, Bill Gates holds these stocks for the stable income growth

In a market full of wild valuations, Bill Gates holds these stocks for the stable income growth

Having sold most of his shares in Microsoft, Bill Gates doesn’t stand to gain nearly as much from the company’s market-topping Q2 as some of the other big shareholders.

But it’s safe to say that both Gates and his well-known charity will be just fine.

Gates is still worth more than $135 billion, according to Forbes, while the Bill & Melinda Gates Foundation Trust remains loaded with winning dividend stocks.

Dividend stocks are a solid way to diversify a portfolio that may be chasing growth a little too fervently. They generate income in both good times and bad, and tend to outdo the S&P 500 over the long-run.

Here are three dividend stocks that occupy significant space in the Bill & Melinda Gates Foundation Trust. It might make sense to follow in its footsteps with some of your spare change.

FedEx Corporation (FDX)

FedEx driver loading boxes into delivery truck day exterior

Elliott Cowand Jr/Shutterstock

At a time when the global supply chain is bogged down from end-to-end, FedEx’s expertise in providing logistics solutions is more valuable than ever.

And with consumers getting used to having their products delivered to their doors, FedEx has been able to increase both shipping volumes and prices.

After increasing its dividend by almost 37% over the past three years, FedEx now pays investors an annual dividend of $3.00 per share.

The foundation’s portfolio included almost 1.5 million shares of FedEx in the second quarter of 2021. The shares have slipped since then, but Gates’ stake in the company is still worth about $354 million. They’re in line for a roughly $4.5 million dividend payout this year.

FedEx currently offers a dividend yield of 1.3%.

Walmart Inc. (WMT)

People shopping at a Walmart store in south San Francisco bay area

Sundry Photography/Shutterstock

With grocery stores deemed essential businesses, Walmart was able to keep its more than 4,700 stores in the U.S. largely open throughout the pandemic.

Not only has the company increased both profits and market share since COVID coughed its way across the country, it has also established itself as a safe bet for investors come the next planet-wide catastrophe.

Gates owns a pile of Walmart shares — about 7.6 million of them. That accounts for about 4.5% of the foundation’s entire stock portfolio.

Walmart has steadily increased its dividends over the past 45 years. Its annual payout is currently $2.20 per share, so the foundation can expect a payment in the neighborhood of $16.7 million from the company in 2021.

Walmart currently trades at roughly $148 per share after a strong rally over the past month. But if you’re on the fence about jumping at such a high price, some investing apps might give you a free share of Walmart just for signing up.

Canadian National Railway Company

Canadian National Railway near Jasper, Alberta, Canada

bunlee/Shutterstock

Canadian National Railway, or CN, has a 20,000-mile-plus rail network that spans from Canada to Central America. The company has access to all three North American coastlines — the Pacific and Atlantic Oceans and the

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