It is interesting to note that Alibaba suddenly shot through to the moon in January 2023 (75% surge in valuation from bottom low as of last week at HDK102 per share) after plunging to a low of HKD60 per share in late October 2022. Apparently, there are 2 main factors: Firstly, analysts are now bullish on Chinese stocks due to the removal of draconian measures against COVID-19 and the impending re-opening of the world's second-largest economy. Secondly, the market views the news that Jack Ma will be relinquishing control of Ant Group as a positive development for Alibaba too.
I am vested in Alibaba with 2,300 shares at around S$40K in market value based on recent stock price. I did not buy a lot into Alibaba during the trough period as it was too much for my risk appetize. My average price is around HKD89 per share and looking at around a 20% capital gain. Those who bought at a low of HKD 60 will probably see a 80%-90% unrealized gain in market value of their shareholdings soon- so congrats!
Sometimes I think that I got no fate with sudden wealth- I am fated to only be able to accumulate wealth gradually at the pace of the tortoise. Whenever I buy something for capital growth, most likely than not, what I bought will sink in valuation. So I am contended with the bite-size small amount (in the context of my entire investment portfolios) that I have invested into Alibaba thus far.
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