James Kar

BYD: Risky Now, Value Later

Old Rick: thank you for the reference. It is a good article.

John Petersen, as you know, BYD stock price goes up so much because of the exposure brought by Warren Buffet. He got in before others so Buffet deserved higher return. Furthermore, the earlier you get in, the more risk you are taking. So, I am not surprised to me that Buffet got in at a lower price with higher return potentially. My philosophy is this: since I cannot buy stocks at the bottom, I just evaluate the risk/reward based on the current price. Just like the current stock market situation, if you use the March low as a reference point, a lot of stocks have gone up over 100%. But it does not mean they won't go higher. But of course, we have to evaluate the risk/reward more carefully, and every investor should evaluate each investment according to their own risk/reward profile.