Today, I sold a partial stake of 1,800 Alibaba HK shares. It marks the end of a position I’ve held for nearly four and a half years – and not in the way I originally envisioned.
At an average cost of around HKD 142, it is ironic that after such a long holding period, I still realized a -1% loss.
Why I decided to sell
First, Alibaba’s earnings trajectory has gone largely sideways.
Revenue growth has slowed significantly from its earlier high-growth phase, transitioning from a rapidly expanding to a more mature, slower-growing profile. Also, earnings growth has not matched revenue growth. Despite this, the stock is trading at around ~20x price-to-earnings, which isn’t particularly attractive given the lack of strong growth momentum.
Second, the opportunity cost of holding Alibaba has been substantial. In Singapore, listed REITs have consistently delivered annual yields of 5%-7%,
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