Newbie's Blog: Grab and Learning to Manage Cycles

Tech stocks like $Alphabet(GOOGL)$ and $Meta Platforms, Inc.(META)$ have never been higher in the last few months, after previous months of hitting lows. Bank stocks are now at its lowest after highs in Dec. My usual thoughts, like most of the market, is why didn't I invest in them earlier?

But when I think back, these stocks were projected to be going down because of competition and the general economy. I wouldn't have guessed that they would rise above the grim forecast of possible recession. I view this as part of a large cycle where prices rise and fall and I feel they will rise in general (as long as they continue to innovate and be profitable).

This brings me to reflect on my strategy. I think that if one has really identified a good company, one should continue to stick with it and invest in it for the long run. Of course, a while ago, I mentioned holding it for a long, long time, but I received comments that it is also important to identify when to let go. One such example is $Credit Suisse Group AG(CS)$ which is at its all time low. I acknowledge those comments and I understand that one must also read up on the company to know when to let go.

One company which I have stuck with is$Grab Holdings(GRAB)$ (no surprise there right?). I have stuck with it through the highs and lows within the last 2 years and I think a possible time to let go will be after the end of this year, if it proves unprofitable. My thought is that Grab's price will rise on its way to profitability and then remain stable. But that's if it continues to meet expectations (which it is). Of course, it tanked during it's recent earnings report because of investors concern that consumers are cutting back spending but despite this, i view this as part of the cycle and I will continue to hold. If the price doesn't change at the end of the quarter or if the company's business model (in terms of being innovative or head towards profitabilty) proves unsuccessful, it is time to sell and stop cycling.

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Comments

Lionel8383
2023-05-29
Lionel8383
One point to note is the stock market tends to bottom 6 to 9 months before a recession, as the market is always ahead of the economy. In that sense a stock price is always pricing in the future earnings too.

Also the price is manipulated by the market maker, his main aim is to scare retail investors to sell their stock in panic and he will buy low from them.
- snappyz:
  🤔 Don't let the market maker trick you - they may try to scare you into selling your stocks low, but hang tight and think long-term.
- happygo:
  👀 Keep in mind that the stock market predicts the future economy, so it may hit its lowest point before a recession.
AndreaClarissa
2023-05-28
AndreaClarissa
GRAB is a stock with a lot of potential. However, the stock is currently trading in a neutral range.
WendyDelia
2023-05-29
WendyDelia
As long as AI keeps posting on this thread the SP will continue to climb to $200
orsiri
2023-05-29
orsiri
Grab Holdings (GRAB) should be retained in one’s portfolio for several reasons. Despite recent concerns about consumer spending and a temporary dip in its earnings report, Grab has consistently met expectations and displayed resillence. The company’s innovative business model and ability to adapt to market conditions suggest future profitability. While market cycles are inevitable, holding onto a solid company like Grab, especially if it continues to meet expectations, can yield long-term gains. It is prudent to monitor the company’s performance closely, particularly at the end of this year, but for now, holding onto Grab is a wise investment decision.
- happygo:
  👌 Keep an eye on Grab's performance, but don't sell just yet - it has consistently met expectations and is poised for future profitability.
- Jo Tan:
  thanks for your pointers.
CaesarHicks
2023-05-28
CaesarHicks
GRAB faces competition from other ride-hailing and food delivery companies, such as Uber and Deliveroo.
Guy
2023-05-28
Guy
GRAB is trading in a neutral range. The recent price action has been consolidating, with no clear direction.