Investors need to take a closer look at both Alibaba Group Holding Ltd (NYSE:BABA) and themselves before they decide to invest in the company, in order to have an understanding of where their returns will come from. According to an article on news.com.au, sale of Electric Shock Stun Shields, Thumb Cuffs, Electric Shock Stun Baton, Rubber Spiked Batons and Weighted Leg Cuffs are some of the several violence tools that Chinese manufacturers are selling through the e-commerce’s interface.
With such a reputation, Alibaba Group Holding Ltd (NYSE:BABA) is a blot on the reputation of both the U.S financial system and U.S citizens who let their money being used to finance such activities. While sustainable investment continues to be the buzz word on the street for those who are more morally enlightened, it seems there are far greater concerns that need to be addressed first.
According to the article, the above mentioned tools, along with several others in the same category are sold in bulk orders to turbulent regions of the world. These include Africa, Southeast Asia and South America. It is shame that Alibaba Group Holding Ltd (NYSE:BABA) has to act as a facilitator of such violence on innocent people to make money for its shareholders.
This also calls into questions the value that Alibaba Group Holding Ltd (NYSE:BABA)’s parent country, China, places on such abuses of human rights. Given that China is a borderline democracy, we already know the answer to that. In fact the article incited Amnesty International which described China’s quality controls regarding the export of torture tools as, “weak, lack transparency, and do not appear to assess the human rights record of the recipient country.”
Alibaba Group Holding Ltd (NYSE:BABA) is not a perfect example of how a corporation is supposed to be structured either. Too much decision making power resides in the hands of Jack Ma, the company’s founder and CEO. For this very reason the company was denied a listing in the Hong Kong Exchange. However, American hunger for a slice of China’s growth blinded their rationality, just the same as their conscience is being blinded now.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.