Part 2: Evaluating Promising Tech Ventures: Hillhouse Capital’s Approach

If the valuation can compound over time, the safety margin will become even greater.

For those who have been following me for more than a year, you’ll notice my focus has been on a select few stocks and industries, particularly this company, one of my holdings. Successful investing involves operating within our circle of competence, as it takes years to fully understand an industry or even a single company. Accumulating this knowledge over time provides a compounded advantage, offering a competitive edge over the market and a deeper perspective. This, in turn, gives you the confidence to recognize the right opportunities to place significant bets with lower risk. In this article, we will continue to explore Zhang Lei of Hillhouse Capital's approach by scrutinizing industrial analysis, the competitive landscape, recent outlook, and the company’s profitability, valuation, and margin of safety. Finally, we will delve into technical analysis and my personal thoughts on this investment opportunity.