Alibaba: Underwater For 1 Year And 2023 Reflections


  • I started accumulating Alibaba Group Holding Limited shares in 2H of 2021 when its price dropped to $140 and below.
  • These shares have been underwater for more than 1 year and have suffered drawdowns close to 50% at the worst moment.
  • Now, my position is finally above water. And this article reflects on this journey to better shield the future me (hopefully you too) from similar experiences.
  • Looking forward, I see the sentiment about Alibaba having turned a corner.
  • Alibaba valuation is still cheap. And the possibility of its Ant Group IPO adds another major upside catalyst.
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2022 Annual review, business and customer review. Review evaluation time for review inspection assessment auditing. Learning, improvement, planning and development. End of year business concept.

Parradee Kietsirikul/iStock via Getty Images


As a long-time investor, I learned this key lesson (and am still relearning it over and again). Making a profit for the wrong reason (being lucky is a typical one) is more dangerous than losing money. If I lost money


Source: Author based on Yahoo data


Source: Author based on Yahoo data


Source: Author based on StockCharts data


Source: Forbes analysis


Source: Seeking Alpha data

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This article was written by

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Proven solutions for both high income & high growth with isolated risks

** Disclosure** I am associated with Envision Research

I am an economist by training, with a focus on financial economics. After I completed my PhD, I have been professionally working as a quantitative modeler, with a focus on the mortgage market, commercial market, and the banking industry for more than a decade. And at the same time, I have been managing several investment accounts for my family for the past 15 years, going through two market crashes and an incredible long bull market in between. 

My writing interests are mostly asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets. I have been a long time SA reader, and am excited to become a more active participator in this wonderful community! 

Disclosure: I/we have a beneficial long position in the shares of BABA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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