Pop Mart fell sharply by 5% today, bringing its share price to HK$135. Keep in mind that Duan Yongping’s cost basis for Pop Mart is HK$150 per share. I really wanted to buy the dip like Old Duan, but I managed to keep my hands off.
The reason is simple: the lower it falls, the more afraid I am to buy. Mr. Duan knows Pop Mart very well, and plans to hold his investment for more than ten years. He sees it as a better opportunity than holding cash or investing in other things, which he feels less confident about. We small retail investors are in a different situation: we need to shuffle money around to cover other expenses, so we can’t afford to tie it up for the long term. Looking at Pop Mart’s performance, it may not recover anytime soon, and I’m afraid that if I buy the dip, I’ll get stuck halfway down.
Besides, you need a good company, a good price, and good timing. As for the price, at HK$135, its market cap is below HK$200 billion, and its P/E ratio is around 15—value investors may find that pretty reasonable. It might rise to 500 in the future, but that doesn’t mean it won’t fall between now and then, whether in a few months or a year. As for timing, the share price has fallen below its previous low, which is unfavorable from a trend perspective. There are also rumors that its third-quarter results won’t show rapid growth.
So, even though this share price is tempting, I still need to wait for the right time to buy. $SOL
The reason is simple: the lower it falls, the more afraid I am to buy. Mr. Duan knows Pop Mart very well, and plans to hold his investment for more than ten years. He sees it as a better opportunity than holding cash or investing in other things, which he feels less confident about. We small retail investors are in a different situation: we need to shuffle money around to cover other expenses, so we can’t afford to tie it up for the long term. Looking at Pop Mart’s performance, it may not recover anytime soon, and I’m afraid that if I buy the dip, I’ll get stuck halfway down.
Besides, you need a good company, a good price, and good timing. As for the price, at HK$135, its market cap is below HK$200 billion, and its P/E ratio is around 15—value investors may find that pretty reasonable. It might rise to 500 in the future, but that doesn’t mean it won’t fall between now and then, whether in a few months or a year. As for timing, the share price has fallen below its previous low, which is unfavorable from a trend perspective. There are also rumors that its third-quarter results won’t show rapid growth.
So, even though this share price is tempting, I still need to wait for the right time to buy. $SOL