Abstract: Explain the reasons of buying HK stock Alibaba Group and share my views.
What I want to share with you today is the transaction I made on August 17. The details are as follows:
- Alibaba Group Holdings Ltd (HK stock code: 9988)
- Quantity: 100 shares
- Bought price: HK$176.5
- Commission fee: HK$44.86
Reasons to buy 9988
Recently, Alibaba’s share price has fallen again. It has fallen by nearly 10% since the last time I increased my position on July 8 at HK$197.1. For the last purchase record, please see here in detail. This time, I decided to increase holdings again mainly because my confidence in Alibaba’s long-term investment value does not change.
On the other hand, although Chinese stocks have continued to be affected by unfavourable policy news recently, I believe that the mainland central government’s policy is not to overthrow these large technology companies, but it is instead on the purpose to regulate the orderly development of various industries to avoid over-expansion, causing damage to the public interest. I believe that in the long run, say 5 or 10 years later, the development of these large enterprises will still get better and better.
Of course, no one really knows at what price the short-term bottom is or when will the decline really end, but I think one of the keys to long-term success in investment is to have the courage to seize the opportunity to buy great companies when the stock price is low, and wait for the company to get over the bad news. Later, when the market re-evaluates the stock, it will certainly rise up again, allowing your investment to achieve capital appreciation. Of course, anyone may be wrong. There are many reasons for this. It may be policy factors, company management mistakes in decision-making and many other factors, but these are often difficult for investors to predict in advance, so diversification of investment is particularly important in protecting your assets.
Comments and sharing
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