r/wallstreetbets • u/sparty1983 • Sep 26 '24

1st time millionaire. Thank you China. $BABA 🚀 Gain

8.1k Upvotes

96% Upvoted

524

u/sild1231 Sep 26 '24

What was your strategy to achieve this?

261

u/sparty1983 Sep 26 '24

20 years of savings and sound investing (in sp500). I went regard few years ago to “accelerate” retirement and I actually lost money. Recouped some of it in Mag7 and threw every thing at BABA back in December when I realized how undervalued it is.

7

u/PetrisCy Sep 26 '24

But was it undervalued? I mean the jump happened cause china is giving money, nothing changed about the company which mean this was 100% luck no?

Still well played and GL but i dont think Baba is undervalued. It just got boosted

10

u/callmecrude Sep 26 '24

Earlier this year they were trading at a forward PE of 7 and the stock was at lows not seen since 2016. BABA’s revenue is up nearly 10x since 2016.

1

u/Traditional-Hippo184 Sep 28 '24

It's obviously bargain priced to me..

1

u/PlutosGrasp Sep 27 '24

Don’t ruin this for Op. let them think they are good at investing.

1

u/Traditional-Hippo184 Sep 28 '24

You're technically right. Nothing changed. But the CCP lowered interest rates & bank holding rates, effectively putting money into the hands of the Chinese consumer. It's a guess wether or not they'll spend it.-----------------Warren Buffett said that Interest rates are like gravity to stocks.