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Why I am excited about buying Alibaba shares?

September 20, 2014

All, and I mean all of them, all the companies that I as a small investor invest in are making big money, naturally, I am a psychologist who specializes in the behavior (body language, personality, motivation, intelligence, creativity) of unique CEO’s. I analyse the movement of shares in a company based on the behavior of the maverick CEO. In the last 3 years I spoke at UCLA, University of Valencia and the University of Rome on Behavioral Economics.  I wrote 2 books on the huge “variance” of importance of a CEO to his company, contrary to the opinion of most investors or investor psychologists.

Now that I may have established my credentials with you, let me tell you about Ma, not my mother but Jack Ma, the CEO of Alibaba, the Chinese company that launched its IPO in New York today instead of in Hong Kong. He was born in a small town in China and thought of New York and learning English as soon as he grew up a bit (reincarnation?). This guy became a business phenomenon, mastering the Chinese and English commerce cultures by the time he was 20!

I am a very conservative investor, I make all my decisions in life scientifically in order to reduce risk to a minimum. Let me tell you, when I saw how Jack Ma retaining control over Alibaba with only 9% of the outstanding shares, I asked myself, “Gee, how can a small guy from a small place in China maneuver the regulations in such a way that Japan’s 34% control and Yahoo’s 25% control of Alibaba are rendered almost obsolete? That is when I got excited about putting in the time in my office to analyse that Ma Fellow. Is he a genius? He certainly was smart enough to circumvent the US legal financial rules of Chinese investing in New York! Then I found out that Ma was also able to circumvent Chinese law against Foreigners owning Chinese stocks by forming an intermediate holding Company in the Caiman Islands. My God, this guy is resourceful, it shows how smart Ma is about international financial dealings. But what about the Chinese government observing all Ma’s shenanigans? Well, he handled them well. He sold (gave free?) Alibaba’s pre IPO shares at $30 to $40 a share to sons of Chinese leaders who would become instant billionaires on September 19, 2014 IPO day if they sold the shares for $100 per share! Ma sure knows how to handle an authoritarian regime by going through the sons!!

I found my unique CEO in Ma. This tenacious Genius has a dynamic personality that remind me of Steven Jobs and Mark Zuckerberg combined! He cares about people and helps the poor. Ma is 49, married with 2 kids, which in psychology is considered the best age for motivation to excel. He is definitely a genius, a Napoleon in international business circles. In 15 years since Alibaba started he connected his company in 240 countries! He lectured in international trade, built fantastic websites, started companies before Alibaba was envisioned and even found time – to save endangered species! And he loves American. Both he and his son studied at the University of Californian at Berkeley!

Forgive me if I have a few “run on sentences.” I wrote this posting, with the research, in just one hour. I wanted to rush it out to my readers ‘hot.” I bought 500 shares today in a sequential buying mode as described in my books. If the shares trend up I buy more and if they go down I wait for the turn. I can’t lose when I bet my money of Jack Ma, a super CEO. Please don’t buy shares just because I do, be smart, do your own research.

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