Rate Of Return
Total Assets06.22 Xiaomi stock price 23, heavy downpour
Today, Xiaomi is at 23, which is even more extreme than the extreme scenario imagined last year: not only has the stock price fallen to this point, but the trend has been almost entirely downward, with no rebound at all.
Compared to last year, the various comment sections for Xiaomi nowadays are a different world. Many people have lost their conviction, even the 'Pan Ge' (a nickname) and others can't hold on anymore.
But I'm still holding on to fight to the end. Since I didn't sell during the rise, I won't sell during the fall either. I'll just consider my assets frozen for this period.
Two Reasons for Holding the Position
1. The market is extremely abnormal; there must be something fishy when things are this unusual.
Right now, it's just the AI production-side related stocks rising on their own momentum, while many other sector stocks are falling. I completely don't understand why they can rise to this market cap. I can't make money from this type, and it can't trap me either.
I believe that often the big truths are simple. For the AI business to form a closed loop, besides the production side, it also needs a consumption side with products and users willing to pay to sustain its market value. Although Xiaomi has no advantage on the production side, it benefits from the massive ecosystem of 'People, Cars, Home' devices. The AI consumption side clearly has potential, and the massive device base provides high-quality training data and scenario demands, creating a swarm effect and potentially a flywheel effect. It's just that the market hype is on the production side, and the consumption side isn't being priced in. But in the future, for business, if there's production, there must be consumption.
2. Believe in those people and those dreams.
I'm optimistic about this group of people and the direction they are striving for. Today, President Hu brought more good news about Xiaomi's autonomous driving at the Nürburgring. This year, it's not just about cars; Mimo is also making rapid breakthroughs. This year might be a year of relatively fast technological and product breakthroughs for Xiaomi, and also a year to break free from inertia and fight hard after the traditional business faced pressure. Currently, they are continuously breaking through. Even if they are to lose later, they should lose on the racetrack, product quality, and market acceptance. We should face it honorably, not fall on the numbers game of finance.
Recent Operations
If the shorts want to play the numbers game, I'll play the numbers game with them, turning their scheme against them. Since I can't expect a rise, I'll hope they smash it a bit lower, and then add to my position at 20, 15.
$XIAOMI-W(01810.HK)
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