Legend also make mistakes la ...

and Uncle Charlie is merely averaging down on his Baba holdings.... 
if not mistaken, his first batch of purchases of Baba shares was above $220 per share. 
Rich legends can afford to lose money. It's a spit in the ocean for them and also their ego.

Diverting from the issue.

Uncle Charlie is really old already la... yup .... he's 98 already la, so one cannot discount this issue...
so as legend as he is, the older he gets, the mistakes will happen more.
Yup, being nasty there but age and mother nature, well mother nature will win. 

Just used my search....

This is from July https://finance.yahoo.com/news/charlie-mung...-173403459.html

This is more nasty... https://thetycoonist.com/2021/11/29/wtf-is-...ing-in-alibaba/

from the yahoo article...
yaaa.... his first purchase should be around 220..

and so his 165,320 shares has now become 602,060 shares.

average down hor!!   

See for me, no need see chart or what... clearly he was wrong the first time and since then, he has bought more and more.
Yup, no matter who or what, I pretty much have no respect for such buying strategies (even if they call it investment)

 

Ever try do the math in such a strategy. Seriously, try count.


Your pocket got so deep mah?

What if Baba go below 80? (simply hantam number la)
Not possible?

WTF is the right side of the chart?   

Hope/Love/Hate all belongs in Hallmark movies and not in the stock market.

That's the period where someone advice us here to 'look to the right side of the chart'

@billy

Here...

I would use Uncle Charlie as the scapegoat example but unfortunately I dunno how to find the actual purchase price...

But here goes... an estimate...

1. 165,320 shares reported bought in April 2021. It was said to be worth $37.5 million at time of filing. Ok rough estimate (and bagi chansi sikit, use lower end estimate.. so estimate cost ~ $220.00). His initial cost of investment is around 36 million.

shares goes down... he doubles down.... 

2. Oct 2021 filing.. he now owns 302,060 shares of Baba. ie he bought another 138,740 shares of Baba. Again using low price estimate of $145.00 as his cost of shares. ie he spent another 20.1 million.

now shares goes down... he doubles down again.... 

3. Latest filing shows he now owns 602,060 shares of Baba.... ie he bought another 300,00 shares. Again using low price estimate of $116 as his cost of share... ie he spent another 34.8 million buying Baba shares....
==>>> adding up... he has now spend a total of $90.9 million buying Baba shares.

Baba share price is now $121... his shares is worth only 72.8 million.... yup still losing money.

dumped in so much more  yet still losing money... is that a wise strategy? If it was not Charlie Munger, you probably would see one call such buying as stubbornly fool who wouldn't admit their initial investment mistake!!!
Yeah... this is the very danger of 'value' investing.

Value investors would definitely say otherwise...cause this is the very bread and butter of value investing... the more it falls, the more 'value' there is.... hence they die die buy more.

when they are right, of course it pays off.....

but isn't there a chance they could be wrong? in Baba case and in other Chinese stock cases. Yes, value might be there but that value is sure damn subjective. Cause no matter what value one sees, there is the State. There is the DaGe. There's always a chance of the State stepping in and farking it all up.......and then there are those .... who has never like Chinese accounting methods.....

some how all bounced back

Unisem looking at the abyss.

What about MPI?

Gone case also, from 10 until 40, now it is just beginning of the downfall
oh ya genetec is in EV hype, but that one also gone liao, just look at Tesla share price

You won't go 'value' on it?

Tech is not gonna just die, I think that too. The question that I have from the investment perspective is, is it still this type of Tech that will flourish in the future?
Tech is one of those industries very exposed to disruption of new technologies, possibly the most as it is the nature of the industry itself. So when we say Tech here, we can be referring to either the industry itself or the companies that make up the industry today. In an investment discussion it is generally the latter that becomes the focus as that is where you make your money.

It is like the photography industry in the past 50 years. More pictures have been taken in the past 10 years than since the beginning of human civilization up to that point. With this sort of industry expansion, Kodak 50 years ago would have been odds on to be the biggest player there is today. After all, they already had digital photography as far back as the 70s but opted not to venture and cannibalize their own film sales. And look where we are today.

So I don't know enough about the companies nor the industry today to make a reasonable forecast 5 - 10 years in the future and derive the value of which I can base my investment. If I can't do that, any transaction here I have to consider a punt or a gamble. Of course someone can say why not just dump on one of the big boys in the FAANG category. That is no guarantee too when it comes to tech. IBM was the biggest name in tech 20 years ago and bad company choices certainly played a role in their tumble.

Caveat here, I would be the first to admit I don't have enough info on the industry as a whole so this is merely personal thoughts.

Isn't all investment based on the prediction by nature? We are all predicting that something will be more valuable in the future than it is right now. Or less valuable in the case of shorts.
The risks that come with investment are all the factors that will prevent your prediction from coming through. Even the most measurable type of investment, a fixed deposit, is inherently a prediction. It is by no means a guarantee because in the unlikely event the bank & the Malaysian government collapses, your money goes poof. But these events are so out of the ordinary that we can say the risk is so low it is negligable. So with the razor thin risk, you also get razor thin returns.

Minions believe otherwise.

I'm guessing hooray for Blizzard as well.
They have been going nowhere for years and milking past exploits for more money.

Cheh! Only cage used meh? Why no use DCF? Dunno how to cook meh?

10% for 5 years where got enough..... guess the fella never learn from those DCFers