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Strategies & Market Trends : Value Investing

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E_K_S

To: Spekulatius who wrote (66711)	2/28/2021 5:47:48 PM
From: Rarebird	1 Recommendation of 78767

I agree with what you say about BABA. However, there is a lot of political risk associated with BABA. It is hard to figure how hard China will crack down on BABA. Eventually, BABA will snap back and rally hard when the political risk dissipates. I learned from experience in 1997 when I was invested in MO that a stock can continue to decline as long as the political risk is prevalent. I was down well over 20% before I made out like a bandit. And MO survived by only a few votes. I remember watching the Senate hearings back in 1997 as I had over 6 figures invested on the long side. I try to stay away from political hot potatoes - though I agree BABA is dirt cheap based on valuation alone. I suppose what I am saying is that investing/trading has enough risks attached to it, without asking for more. Don't think I haven't thought about taking a long position in BABA. It was cheap at $260. On a cash flow basis, FB and AMZN are cheap too. AMZN represents much less political risk than FB.

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