Holding Firm and Steady

The ultimate point of a stop loss is to limit one's losses. With today's high volumes of trading and free flow of information, market volatility now comes more into play than perhaps ever before. As my stock investment is based on longer timelines and company fundamentals, I am not overly concerned with short term volatility and price fluctuations. One losing investment in my stock portfolio is $Alibaba(BABA.US)$ which I would not hesitate to hold. The stock price of $Alibaba(BABA.US)$ has been hammered due to China's regulatory crackdown on the tech sector. Nevertheless, $Alibaba(BABA.US)$ remains a fundamentally strong company as its core operating businesses continue to grow at increasing rates. Despite its strong growth rates, $Alibaba(BABA.US)$ is still trading at very low valuations, below its intrinsic value, making it an attractive long term investment. Though $Alibaba(BABA.US)$ has suffered from multiple setbacks for the past year arising from Chinese regulatory pressures, its core businesses continue to deliver. Not only that, its other businesses including international retail, logistics and cloud computing, which is seen an increasing challenge to US tech giants $Amazon(AMZN.US)$ and $Microsoft(MSFT.US)$, are all expanding at impressive rates. Despite the decline in stock price, $Alibaba(BABA.US)$ is a fundamentally solid company that continues to perform well across all its business segments. Furthermore, its recent investments will not only mitigate its regulatory risks but expand its total potential market in the future. The recent increased investment of $Alibaba(BABA.US)$ from the legendary investor, Charlie Munger shows that with a little patience, it is worthwhile to take some short term pain for long term gain. As such, $Alibaba(BABA.US)$ not only remains in my stock portfolio but I have raised my stakes in this Chinese tech stalwart.
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