2 Big Reasons to Consider Buying Dangdang


Investing in small Chinese technology companies has been akin to crossing a field covered with hidden landmines. It got so risky that in 2012, Fool contributor Brian Stoffel pledged to buy absolutely no small-cap Chinese companies for his real-life holdings.

But 2013 is a new year, and a small company he has been watching for some time now has piqued his interest: Chinese e-tailer Dangdang . Though the stock, often referred to as the "Amazon of China," is not without its risks, Brian believes it has two big trends moving in its favor.

In fact, Dangdang is one of the five stocks he's considering buying in June for his Roth IRA. He's been calling out one company per month for almost two years now, and the portfolio has returned 25%, beating the S&P 500 by over 4 percentage points.

In the video, Brian explains his reasoning for considering the stock for his real-life holdings.

Learn about the titans of tech
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article 2 Big Reasons to Consider Buying Dangdang originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of Amazon.com. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published