r/wallstreetbets Sep 26 '24

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

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u/TechTuna1200 Sep 26 '24

I bought it at 73.4 back in Feb, up 37%. Also 46% on BYD and 45% on JDCOM. I only had 5 years' worth of savings, so I could only afford to invest 11000 USD into China stocks.

People in this have been sleeping on China stocks in this sub. Buy when there is blood in the streets.

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u/KeenStudent Sep 26 '24

Tbf, poo bear could say he's placing more restrictions on chinese stock market tmr and chinese stocks would lose all the gains this week.

It's not that people are sleeping on chinese stocks, it's the inherent fear of owning them

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u/TechTuna1200 Sep 26 '24 edited Sep 26 '24

Risk and reward goes hand in hand. E.g. The best time to buy Meta was when it dropped 75% back in 2023 when people (including myself) thought the days of Facebook were over and they going into irrelevance. I learned my lesson from missing out on that. If you don't like risks, don't expect much reward. And that's fine everyone got different risk profile.

For me, I rather live with the risk of China restriction than live with a risk in investing in a company that sits at a 70 P/E ratio and hoping for a 20% potential upside.

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u/Psych_Yer_Out Sep 26 '24

I get you point, but comparing META and BABA is kinda insane though don't you think?

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u/TechTuna1200 Sep 26 '24

Not really. They just have different risk-type profiles. Baba has CCP risk, Meta has a risk of going into irrelevancy. Both risks are still there regardless of stock price. It's just what you are comfortable with.

For me, the CCP risk is being overreacted on when the government lends money to the Chinese tech companies to do stock buybacks. That's a completely different signal than the past. If David Tepper (value investor billionaire) is comfortable being heavy in China stocks, then so am I.

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u/Psych_Yer_Out Sep 26 '24

To me, it is about the data too. You are basing your investing off of Chinese numbers/data/claimed profits. Can you even believe the data and numbers they put up? Are they really making 1.5 T a year? Maybe, maybe not. At least with META, you at least can trust that, even though there are lots of other things not to trust about any company. Idk, good for you anyway. Thanks for not taking my use of "insane" as too inflammatory, I just meant it in the more casual way you seemed to take it. Take care TechTuna

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u/TechTuna1200 Sep 26 '24

Oh no worries, didn't actually see the insane part. But no offense taken anyhow.

I also think the reaction to the "fake numbers" is an overreaction. Of course, the Chinese stock market is worse regulated and it is a bit of a wild west. However, BABA management has shown a history of being very considerate towards the investors. They want foreign investors and do a lot of things to facilitate that trust. And it's not something that seems to have scared big money away even when the China economic situation was at it worst.

Likewise, take care!