Years ago, when Alibaba IPO, touted Jack Ma is next Bill Gates! I didn't get IPO, but rush to buy in with very very expensive price and very very high PE. End up, I lose 62% and Alibaba going to delisted.
This is my first big investment and biggest loss! Of coz, learned a lot.
First, buying price decides the safety margin of investment! Be patient!
Secondly, hot stock is normally bad investment target! Because the premium is high.
Thirdly, long term competitive advantage is key in valuation, look at the business model before buying.
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