Hi, I have a very heavy bag of BABA stocks.
Specifically I have 100xBABA with cost basis €234 and 10xBABA with cost basis $153.5.
I live in Europe.
I’m thinking of DCAing buying around 90 more stocks.
First question: Should I not? In my opinion and according to any analyst that I have read BABA continues to be fundamentally completely undervalued. China is always a risk but I want to believe eventually they will be allowed to operate normally. However there is even the uncertainty with Taiwan now so maybe it’s really another wrong moment and could end up with heavier bags.
Second: If I do it, should I increase my position in € or $? My currency is €, but if I increased my $ exposure I would completely remove currency risk from the portfolio (right?). Currently EUR has dropped relative to USD.
There is a downside to having $. If I understand correctly in my country I don’t pay capital gains if I invest through Frankfurt exchange but I’m not 100% sure if I invest instead through NYSE.
Third question: If I do it, would you recommend throwing it at once? Adding like 10 stocks every week? 10 every month?
To help you skip one calculation, if I bought 90 shares right now, I would drop my cost basis to ~167€/$.
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