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r/baba
Hot take: position sizing
Investor summaryBullish
Author argues BABA is likely undervalued but warns that poor position sizing leads to emotional distress during drawdowns.
Bull points
- BABA is considered very likely undervalued.
- Long-term holding is viable with proper position sizing.
BABA价值 / 回购
Post body
Hot take: a lot of the complaining here is really just bad position sizing. If BABA is 10-15% of your portfolio, yeah, a 40% drop hurts, but you can still sleep at night if you’re thinking long term.
But if it’s 75% of your portfolio, every red day feels like a crisis. You start second-guessing everything and blaming hedgie manipulation, China “involution,” Trump, Xi, Anthropic, etc.
BABA is very likely undervalued, but if every red day put you in crisis mode, you probably bet too big.
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