Charlie missed badly on this one. He may want to re-read Cialdini.
How can you be sure Charlie missed it? Do you know what price BABA will be in a few years?
Every Chinese tech is down like 8%+ today… I’m loosing big on baba and Tencent (the one that I bought recently hurts the most, hoping that sharing my pain will lessen the pain somehow ) I am sure it has to do with war situation but have not see any particular news.
Promise to myself… done with buying Chinese Tech for now.
No you can’t make the call yet on whether Charlie missed it. The call now is whether or not those of you considering will miss it.
You may or you may not. Stay tuned!
permanent loss is to be avoided.
The current stock price is huge to nearly all investors, but of little importance to Charlie. The entire BABA situation as related to the current stock price is of little concern to him.
That’s the difference. Most look for and need on-going affirmation, he doesn’t. He’s oblivious.
Looks like it’s going to zero anyway. Russia / China links probably. The negative news is never ending. I bought some more at a 100 and FB and Prosus this week too at current levels. Drip feeding in and will continue to do so… bottom draw 5 years ???
I had posted some admittedly sketchy chart analysis of BABA some time ago which noted if the stock broke down below support at around $112, the next level where any kind of prior bottom had been formed was down at $87. We’re almost there, hit $91 today. Support at $87 doesn’t look like anything to hang a hat on. All time low for the stock was $59.24 back in Sept. 2015, with a test of that bottom Feb. 2016. I’d be pretty shocked if it fell below that.
Current trailing twelve month PE is 24, based on trailing earnings of $3.77. That included a quarter of negative earnings March 2021 that reflected a hefty fine by the Chinese government. Next quarter that negative earnings of -.32 will be replaced. I’ll guesstimate coming earnings at 1/3 the trailing 3 quarters: $1.36, which would make trailing 12 month earnings $5.45 and PE, at current $91 share price, 17. Not bad but not screamingly cheap if we’re looking at stagnant earnings and revenue growth in the teens for the near future. If it tests the all time low of $59.24, earnings of $5.45 would give PE 10.87. That’s actually kind of believable that it gets that low, given all the worries around the stock and China.
The current stock price is huge to nearly all investors, but of little importance to Charlie.
The guy who has a very short life expectancy (given his age) has the longest time horizon than others? World is full of ironies.
“That’s the difference. Most look for and need on-going affirmation, he doesn’t. He’s oblivious.”
Not so sure. Legacy is very important to Charlie. Sad to think he most likely won’t be around to see the outcome. He has had an amazing run for sure. Time is undefeated.
I think he is very comfortable to pass the legacy to Li Lu
Do you think Li Lu will manage DJCO portfolio post Munger?
<<Do you think Li Lu will manage DJCO portfolio post Munger?>>
I guess so. He has been managing Charlie’s family portfolio.
“I think he is very comfortable to pass the legacy to Li Lu”
His legacy is his. It is not transferrable. The portfolio obviously is and Li Lu is talented.
Further delisting fears including YUM China down 15%.
It hit $88 today, the same pronounciation in Chinese as “BaBa”. Internet chat rooms says this shall be the number that it bottoms at. Who knows…
I hope it stays low for a while… so I can buy some
under that now… as is said “may you live in interesting times”
Benkea and I used and discussed both charting and fundamental analysis almost daily. One thing Ben told me, I’ve never forgotten is, that in a real bear market, support is virtually useless, resistance is key. In a bull market it’s the opposite. Thanks, my best friend, Ben, I really miss you