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Is the alibaba stock ipo due to open on friday a good investment? how much stock should i buy?

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  Answers  |  2

September 19, 2014

Part one: no one knows. Part two: zero.

$commenter.renderDisplayableName() | 11.23.20 @ 22:27


September 20, 2014

This is a bad question because you are seeking a "stock tip." People who seek stock tips lose money even if the stock tip is right. Why?

If I tell you to buy it, how will you know when to sell? You need to learn about investing far more than you need to know about an individual stock like Alibaba. If you understood investing, you would know that the stocks of companies like Alibaba rely on a huge amount of future profit growth to justify their very high valuations. A precious few of such companies are big winners. Most lose big.

Also, should Alibaba ever get into trouble, and the stock price falls, what could investors as a group ever do to try to right the situation? Almost nothing, because the company is not controlled by shareholders.

Buying individual stocks is a business. Are you ready to do your homework, and learn to think like a businessman about investing? Are you ready to study at least one hour per day for a year before buying stock? If not, you are not ready to buy any individual stocks, and you should get a financial advisor to help you buy assets that can suit your situation, of which I do not know the details.

$commenter.renderDisplayableName() | 11.23.20 @ 22:27