‘China’s Warren Buffett’ adds Moutai shares for 3rd time as baijiu sector seeks bottom

Chinese-American billionaire investor Duan Yongping, often referred to as China's Warren Buffett, has increased his stake in Moutai, a leading baijiu brand, for the third time this year. This comes amid a sector-wide reassessment. Baijiu, a traditional Chinese spirit, has been facing a downward trend in demand due to stricter regulations, more cautious corporate spending, and anti-corruption efforts.

However, premium baijiu, particularly Moutai, is showing early signs of stabilization. Most other players, especially sub-premium brands, are still struggling with excess inventory and have yet to confirm a bottom. Despite this, Moutai, once the most expensive stock on mainland-listed, has seen a 1.86 per cent increase in shares, now trading at 1258.62 yuan per share.

Over the year, the stock has dropped about 8.6 per cent. Chinese baijiu sales have been on a downward trajectory since mid-2024, lagging behind the broader market due to an aging population and lower per capita drinking rates. In a recent post on Xueqiu, a Chinese social and trading platform, Duan disclosed his purchase of 30,000 shares of Moutai at 1,230.85 yuan per share, a total investment of 36.93 million yuan (US$5.5 million).

Duan believes Moutai's unique value is "irreplaceable" and its brand's app has helped curb counterfeiting and price speculation, unlocking consumer demand. Analysts expect the sector to become zero-sum, with only companies possessing durable competitive advantages emerging as long-term winners.