eToro Popular Investor Baichuan Li, known as Geofflee2006 on the eToro platform,has three “don’ts” for investors. Don’t invest emotionally. Don’t base your investment decisions on other people’s opinions. Don’t treat investing like gambling. Baichuan is a long-term value-oriented investor and prefers to focus on tech stocks, which is his strong area of knowledge. Below is our conversation with him about his background and investing strategy.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Tell us a little about yourself!
I am originally from Shanghai, China, but have lived in the UK for most of my life. I studied mathematics at Cambridge University, because of my interest in physical sciences and graduated with a Master’s degree. Since then, I have started my own business in technology, while simultaneously serving as a Popular Investor on eToro. I’m a big fan of classical music. In my free time, I go to concerts, listen to music at home and also compose. I also enjoy cooking and playing strategy-based video games.
What’s your background in finance?
I have been interested in trading and investing since quite a young age. My first foray into trading was when I traded in online games as a teenager and was able to fund a few family holidays. Since I joined university, my interest grew as I took numerous courses in statistics and financial modelling. I joined eToro after graduating in order to build my own investment portfolio, and have been managing it ever since!
What is your strategy and have you changed it recently to adapt to the volatile markets? Where do you do your research?
I have always considered myself a long-term value-oriented investor. Since the onset of the coronavirus in early 2020, we have seen patches of volatility, including one of the most volatile periods in history. I have slowly transitioned from a GARP (growth at a reasonable price) investor into pure value for additional safety, while navigating a rising, but volatile market. I also keep my portfolio reasonably, but not overly diversified, and focus on a dozen thoroughly researched high-conviction companies with competitive products, strong balance sheets and competent management.
In my research, I look at different metrics of a company, usually from information available at its investor portal. I also do my own financial calculations and gather other publicly available data (e.g., consumer feedback to a newly released product) to paint a picture of how I think its stock will perform.
How has eToro impacted the way you trade?
eToro adds a social aspect of trading, which I find very beneficial. There are many talented investors/traders on eToro who share their own opinions on instruments in which I’m interested, some of which are backed up by detailed analysis. It has been very useful to see what others think of the same instruments. This complements my own research and helps me build a well-rounded picture of the economy as a whole as well as of particular stocks that I might want to invest in.
As a popular investor, I have also been helped by eToro with my accreditation with CISI. I was able to achieve the highest passing score in CISI’s level 4 Certificate in Advanced International Wealth Management exam last year.
Which assets or industries do you have your eye on now? Why?
There is currently a lot of geopolitical tension which has consequently affected my European stock holdings disproportionately. I am keeping a close eye on all developments, although my original recovery thesis is unchanged. At the start of this year, I reshuffled my portfolio and assumed a more defensive posture. I believe this will allow us to survive the current period of volatility and that we are well-positioned for the long term.
What was your favourite/least favourite trade over the past year? Why?
I have not made many trades in the past year as I’m a long-term investor, however, I do like where Intel is positioned right now. I believe INTC stock is poised for a recovery over the next few years as Intel turns the tables on its competitors. There are already early signs of this happening and, therefore, I made a significant increase in my investment in Intel in the past year. While the investment has yet to bear fruit, I remain patient and watchful.
What’s your long-term trading goal?
My goal in investing has always been to grow my portfolio over years and decades in order to provide an increasing passive income through steady returns.
Any message to copiers or potential copiers?
For existing long-term copiers — thank you for sticking with me and believing in my portfolio management. For potential copiers, and everyone on eToro — don’t trade emotionally, don’t act on others’ opinions if they’re not yours, and don’t treat trading/investing as gambling.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.