Portfolio Update: New Addition (BABA; November 12, 2014)

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Now that Rental Property Side Hustle #1 and #2 have closed and been leased out, I’ve afforded myself a little bit more breathing room. It wasn’t easy, but I finally paid off all my debts this month (courtesy of my signing bonus posting)! 🙂

Well, not quite all my debts, as I still have mortgages for all FIVE of my rental properties and TWO additional mortgages for the side hustle deals. But after paying back my partners, it sure does feel like the weight of the world has been lifted off my shoulders.

I don’t have much free cash… yet, but I used today as an opportunity to load up on more Alibaba (BABA) stock. Just like the first round, buying shares in BABA this time around is again purely for speculation on future appreciation. This particular move is not necessarily a strategy for funding early FI, but more of a complement to my rental income stream.

Investors will debate cash flow/dividends vs. appreciation all day long until the cows come home. Rather than just outright picking a side, I’ve discovered, my preference is to have BOTH (what can I say, I love diversification). I see the value in cash flow/dividends for the immediate term, and I most definitely also see the power behind appreciation for the long haul.

So, today I added to my BABA position by picking up 18 shares at $116.30/share. No bargain here… But I’m trying to keep investing as simple as possible:

  • Identify stock of interest.
  • Purchase as many shares as possible as free cash permits.
  • Sit back and enjoy the ride.

I now own 118 shares of BABA.

I don’t need to monitor this position every day… or even every month. I’m an income investor at heart, but I will take flyers on growth stocks every now and then. We’ll see how this one plays out…

I must say, it feels good to finally have some free cash again! 🙂

Fight On!

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5 years ago

Just out of curiosity, do you set a strategy of hold/sale limit? For example, do you plan ever to sell Alibaba at what price?

I thought the conventional wisdom is investing in individual stocks are dangerous moves. After all, this is not much different from other forms of gamble. On the other hand, all those who continuing buying stocks like BABA and Tesla have been happily seeing their holdings going up, up, up, and more up.

5 years ago

I guess you betting BABA will follow GOOG that went public around $90 and the rest is a well known story…

5 years ago

Nice move on the Alibaba purchase. I have been itching to make a purchase myself. Maybe I will pull the trigger on another pullback. Looking forward to hearing more on your investing per suits now you have free cash flow again.

5 years ago

You did great at picking Baba stock earlier. I kick myself every single day for not picking up shares at $85. I finally purchased 150 shares and am in the green. Holding it long term also.

A Frugal Family's Journey

Congrats on the newfound cash flow! Wow, over $13,600 held in one company tells me you have great confidence in the future of BABA. I don’t know much about the company but wish you nothing but continued success. AFFJ

5 years ago

The main thing is to have cash freed up to make these sort of calls. Like you said, people will debate any particular investing strategy. The thing they have in common: the capital to invest in the first place. Glad to hear you’ve knocked out some debts and can make these sort of moves.