hgarstockguru88:
baba is one of the least risky stocks i know of outside of something like Mitsubishi Financial .. they are immensely profitable, growing steadily, and have enormous piles of cash ..
Investing 101 :
Risk is based on how much you understand of the company. If you know about baba. You know the price now is a cheap valuation. Only traders will say its risky now due to the falling stock price. And they are not wrong. Ultimately traders don't buy and hold. They go for short term gains. Which baba is not providing at that moment.
But if you are a long term investor, buying into baba at cheap valuation is exactly what you should be doing. But of course at the RIGHT entry points. Not blindly buying every USD4 fall.
I had a friend yesterday who recently started investing told me he is afraid of averaging into baba due to fear of price falling further. I told him his emotions has clouded his investment judgement and that is what many new investors face. Fear is due to lack of conviction in a company. And that is due to lack of research. If you have fear now buying at USD120. Ask yourself, why did you buy at USD200 few months ago?
If the answer was due to stock price was not a falling knife at that time. That shows what your investment thesis is based on.
BtanInvesting 101:
Totally agree. The stock price is now a sentiment. We must not forget about the fundamentals of Baba. The financials and business strategy is very proven and resilient. Investing into it makes sense over a longer horizon. Expecting prices to rebound just after 2 weeks is just wishful thinking
Daddy TRex :
Risk is mainly with CCP... How they will rein in Jack Ma... If tomorrow CCP fines Baba further or clamps it down further such that business is seriously curtailed then these valuations will look high... Refer to the tutoring sector for China as reference.
Investing 101Btan:
Ecommerce is definitely going to be a part of our lives now and even in the future. I can't say for now if baba is still worth 700bil market cap at the ATH due to recent new regulations. But I can say for sure with baba cash flow and investments they own, the current price is cheap. And yes short term clampdown is bad news for all china stocks not just baba. Just that baba had it worse. But that makes baba a better buy than others. Like I said in my other posts, buy low sell high is a simple theory everyone here understands. But humans follow emotions and tend to buy high and sell low. So if you bought at USD200 and is afraid to buy at USD120 you should know what is the problem you are facing now.
But of course with that being said, I'm not asking anyone to buy at USD120 yet as it may just fall lower and open up better buying opportunities. But it is the mindset that you have when you come into the investing world.
If you hold on to the wrong mindset of looking at investing. You'll be better off buying meme stocks.
beedeebee :
At this price, I think risk is relatively low. TBH, I don't think China will kill off their giant in the name of common prosperity. If they do, they just killing off their competitiveness globally. They wouldn't want Amazon to take over more market. Same for other stock like Tencent. These companies bring in tons of money and job opportunities to China. No money, talk about what common prosperity, think about it.
LONG TERM INVESTOR :
Investment is about consistent purchase of shares with your spare monthly income ( with long term in mind ) ; regardless whether the stock price is moving up or down. Enjoy the high discount right now; you will be glad that you were given the opportunity to own more shares of a highly profitable and good company
stockguru88 : lol risky? u r buying into a business thats worth millions of dollars and an stable annual revenue.. not sure what’s risky to u
hgar stockguru88: baba is one of the least risky stocks i know of outside of something like Mitsubishi Financial .. they are immensely profitable, growing steadily, and have enormous piles of cash ..
Btan stockguru88: Sorry you are wrong. Not millions but billions
Investing 101 : Risk is based on how much you understand of the company. If you know about baba. You know the price now is a cheap valuation. Only traders will say its risky now due to the falling stock price. And they are not wrong. Ultimately traders don't buy and hold. They go for short term gains. Which baba is not providing at that moment.
But if you are a long term investor, buying into baba at cheap valuation is exactly what you should be doing. But of course at the RIGHT entry points. Not blindly buying every USD4 fall.
I had a friend yesterday who recently started investing told me he is afraid of averaging into baba due to fear of price falling further. I told him his emotions has clouded his investment judgement and that is what many new investors face. Fear is due to lack of conviction in a company. And that is due to lack of research. If you have fear now buying at USD120. Ask yourself, why did you buy at USD200 few months ago?
If the answer was due to stock price was not a falling knife at that time. That shows what your investment thesis is based on.
70193421 Btan: Hundreds of billions...
Btan Investing 101: Totally agree. The stock price is now a sentiment. We must not forget about the fundamentals of Baba. The financials and business strategy is very proven and resilient. Investing into it makes sense over a longer horizon. Expecting prices to rebound just after 2 weeks is just wishful thinking
Daddy TRex : Risk is mainly with CCP... How they will rein in Jack Ma... If tomorrow CCP fines Baba further or clamps it down further such that business is seriously curtailed then these valuations will look high... Refer to the tutoring sector for China as reference.
Investing 101 Btan: Ecommerce is definitely going to be a part of our lives now and even in the future. I can't say for now if baba is still worth 700bil market cap at the ATH due to recent new regulations. But I can say for sure with baba cash flow and investments they own, the current price is cheap. And yes short term clampdown is bad news for all china stocks not just baba. Just that baba had it worse. But that makes baba a better buy than others. Like I said in my other posts, buy low sell high is a simple theory everyone here understands. But humans follow emotions and tend to buy high and sell low. So if you bought at USD200 and is afraid to buy at USD120 you should know what is the problem you are facing now.
But of course with that being said, I'm not asking anyone to buy at USD120 yet as it may just fall lower and open up better buying opportunities. But it is the mindset that you have when you come into the investing world.
If you hold on to the wrong mindset of looking at investing. You'll be better off buying meme stocks.
beedeebee : At this price, I think risk is relatively low. TBH, I don't think China will kill off their giant in the name of common prosperity. If they do, they just killing off their competitiveness globally. They wouldn't want Amazon to take over more market. Same for other stock like Tencent. These companies bring in tons of money and job opportunities to China. No money, talk about what common prosperity, think about it.
LONG TERM INVESTOR : Investment is about consistent purchase of shares with your spare monthly income ( with long term in mind ) ; regardless whether the stock price is moving up or down. Enjoy the high discount right now; you will be glad that you were given the opportunity to own more shares of a highly profitable and good company
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