Ken Fisher isn’t your average investor. His firm, Fisher Investments, manages over $200 billion in assets, and when he makes a move, Wall Street pays attention. Recently, Fisher made waves by adding JD.com (NASDAQ: JD) to his tech portfolio, raising eyebrows across the investment community.
Fisher’s investment comes at an interesting time for Chinese tech stocks. These companies have weathered significant regulatory storms over the past few years. Government crackdowns, antitrust concerns, and geopolitical tensions created what many analysts call a “perfect storm” of negative sentiment. Yet Fisher sees something others might be missing.
“Value emerges from pessimism,” Fisher often remarks in his Forbes columns. This philosophy seems to be driving his JD.com investment. The e-commerce giant currently trades at price-to-earnings ratios significantly below its historical average and American counterparts. While Amazon trades at roughly 60 times earnings, JD.com sits at a modest 14 times earnings despite comparable growth metrics.
The numbers tell a compelling story. JD.com reported $157.3 billion in revenue for 2022, representing 10.5% year-over-year growth even during China’s strict COVID lockdowns. Their logistics network includes over 1,500 warehouses covering approximately 30 million square meters. Few companies can match this infrastructure advantage, even Amazon.
What particularly stands out is JD.com’s healthy balance sheet. The company holds approximately $25 billion in cash and short-term investments against just $4.6 billion in long-term debt. This financial flexibility gives management options to weather economic uncertainty, increase shareholder returns, or pursue strategic acquisitions.
Fisher’s investment philosophy has long emphasized identifying companies with strong fundamentals trading at discounted prices due to temporary market pessimism. JD.com checks these boxes emphatically. The company maintains robust profit margins in a notoriously thin-margin business while continuing to invest in future growth drivers like artificial intelligence and automated logistics.
Chinese tech stocks fell dramatically from their 2021 peaks. JD.com lost nearly 60% of its value during this period, creating what Fisher likely views as a compelling entry point. The contrarian investor has built his reputation on zigging when others zag, famously stating, “The only way to consistently make money in markets is to do what others won’t or can’t.”
Regulatory concerns that once dominated headlines have shown signs of easing. Chinese authorities appear to be pivoting toward economic growth rather than increased regulation. This shift creates a potential catalyst for Chinese tech stocks that have been priced for worst-case scenarios.
The company’s strategic investments in logistics give it a competitive moat competitors struggle to replicate. While many e-commerce platforms rely on third-party delivery services, JD.com controls its entire supply chain. This approach enables faster delivery times, better inventory management, and superior customer experiences.
Not everyone shares Fisher’s optimism. Some analysts point to continued risks including potential new regulatory challenges, uncertain Chinese economic growth, and ongoing tensions between the United States and China. Charlie Munger’s Dailey Journal recently reduced its Alibaba position, highlighting the divergence of opinions among value investors regarding Chinese tech stocks.
The broader context matters too. Fisher’s move comes amid a general revaluation of technology stocks globally. After the 2022 tech selloff, investors are becoming more discriminating, favoring companies with proven profitability over pure growth stories. JD.com’s combination of growth and profitability aligns perfectly with this shifting market preference.
“The market doesn’t reward tech companies just for growth anymore,” notes Scott Kessler, global sector lead for technology at Third Bridge. “Investors want to see profits, cash flow, and balance sheet strength. The companies that can deliver all three will be the winners in this new environment.”
Fisher’s investment represents approximately 0.5% of his firm’s portfolio, suggesting conviction tempered with appropriate risk management. This position
