China Stocks Still A Buy Despite The Rally (3 Investing Strategies)

The rally pushed up but that was it, just a rally. We will see how the fundamentals develop over the coming years.

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3:23 Principles.
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6:41 Investing Technique.

Stocks Still A Buy Despite The Rally (3 Investing Strategies)

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39 Comments

  1. Thank you, Sven. Was looking forward to hearing your opinion on this. Stocks are on the downtrend now so not sure if this is just a pump and dump scheme.

    1. It’s neither. It’s both.
      A category starts to rise, people who jump in early pump it before jumping out.
      The category begins to fall, people who short it early in the downtrend are equally aggressive in talking about how the downtrend will continue.

  2. 🗽 Sven what do you think about LRCX (Lam Research)? They have their business in Asia (including China). The stock currently looks like value.
    .

  3. Tencent is now something along the lines of ~20% of my portfolio and my second largest holding after Berkshire. My guess is in my lifetime we will witness China go from a manufacturing based to a service based economy and I believe Tencent and Alibaba are well positioned over the long run for this transformation.

  4. You see with this once again that media narrative follows the stock price. In January I added a lot of Alibaba @67, and the news was abysmal. Now, it’s suddenly great.

    But this week it’s already bad again because the stock prices corrected slightly…..

    This is meta in 2022 all over again.

    1. @@mathewwilson9776 it’s baffling to me but that seems the case.
      I’m 26 and only been investing for 3.5 years now, I shouldn’t have a keen grasp on this yet without formal education.
      But my conclusion is that an apparent 90% of people don’t know what they are doing and their ignorance is reinforced by the Financial Media ecosystem that claims to be informative.

  5. _HELLO I KNOW NOTHING ABOUT TRADING/ INVESTING AND I’M KEEN ON GETTING STARTED . WHAT ARE SOME STRATEGIES TO GET STARTED WITH ?_

    1. As a beginner, it’s essential for you to have a mentor to keep you accountable.
      I’m guided by a widely known crypto consultant

    2. This is correct, Annette Gina strategy has normalized winning tra-des for me also and it’s a huge milestone for me looking back to how it all started,..

    3. Isn’t that the same Annette Gina that my neighbours are talking about, she has to be a perfect expert for people to talk about her so well

  6. Hey Sven! Great content so far wondering if ykuve seen the 1 ir 3 big Canadian Telecoms names Telus communications still sitting 30-35% down from its highs with a very good divident track record sitting at 6 something percent now. Would love to here your thoughts on them!

  7. Thanks Sven!! Appreciate all the effor to keep us informed. Can you please do a video about Brazil stocks (seem undervalued) Banco Bradesco BBD and Gerdau, similar to the one you did with Ambev. Many thanks!!

  8. Many chinese companies with 8% dividend yield, even more. Clean balance and good numbers. Happy to wait for better times…

    1. @@bananaboyTS You just head over to the Hong Kong exchange, ask yourself what kind of businesses you like, understand and would be comfortable holding, and go through them one by one. ADR’s either don’t exist or are too illiquid, so it has to be native HK shares.

  9. BABA is priced the same as in 2014, but their revenue is 13x higher today, they are buying back shares and they started paying a dividend. They are a leader in AI and their core business has stabilized and will slowly grow in the foreseeable future.
    I loaded up on BABA and a China ETF during the summer.

    1. Plus, stock-based compensation has shrunk and the operating losses on the still unprofitable business units continue to shrink as they scale and may soon start adding to the bottom line.

  10. Hi Sven, could you do a video on Peter Lynch’s and Benjamin Graham’s stock valuation methods? Do you think they are applicable in today’s world of investing?

  11. I chose the “sell” strategy last week. If the individual stock (JD, BABA) come back down, I may start a position again. Otherwise, I won’t sweat it

  12. Hi Sven, a few comments:
    1. You’re talking your book, but it’s ok, agree with the analysis
    2. I think Hang Seng index correlates better with tech stocks & etf indexes than SSE composite.
    3. Nice to hear that you’re still holding, so am I. Was thinking you sold already.
    4. Just occurred to me that as Chinese giants are doing buybacks now, this should help long term asset values…
    5. I lied above, being a newbie I sold third of my China position when it dipped a month ago at the very bottom. The remaining 2/3 is today up 32% (msci china etf). Looks that it has stabilized in US & volumes are back to normal. Good.
    6. some volatility expected later, when China announces the exact sums for stimulus apparently this month… and probably US presidential elections…

  13. The worst time to start obsessively following the stock market is right after it’s crashed — that is, unless you’re taking that long-term perspective and looking at it as an opportunity. If your stomach is in knots because the market just tanked, try reading up on the facts about crashes instead of focusing on what just happened. You’ll learn that crashes are incredibly common, and the stock market has always recovered

    1. In order to make profits from trading you need loads of experience and a well defined strategy, which most traders don’t have. If you trade without the proper preparation, you’re most likely to lose your money. Identify the buy/sell ratios and identify the market leaders and most importantly. Diversify! this will help you spread risk.

    2. I wonder what the best opportunities to invest now are, There are lots of opinions but a little later I find out these opinions don’t matter as a totally different turn of events play out with the stocks market every now and then

    3. “It’s usually best to ignore the trend whether bullish or bearish and stick to a proper trading plan maybe from the help of a professional. I recently just started investing again so I am still in touch with the consultant that provides entry and exit points on the securities I focus on. She does all the technical analysis legwork while I go about my other businesses. You can use something else if you are the DIY type of guy, investing has no one way to do it”.

    4. How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don’t want to take any chances.

  14. I did the same, kept my China stocks and ETFs and bought a bit more. The exposure is limited, less than 10% of my portfolio.

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