Billionaire Charlie Munger’s Daily Journal Boosts Alibaba Baba Stake By 83%

Billionaire Charlie Munger’s Daily Journal Boosts Alibaba Baba Stake By 83%

U.S. billionaire investor Charlie Munger doubled down on his Alibaba position in the third quarter, according to an SEC filing. 

Munger’s chairman position of the Daily Journal Corporation isn’t well known as his other jobs, such as vice-chairman of Berkshire Hathaway. Still, the legal newspaper has a sizeable investment portfolio where he boosted its Alibaba stake by 83% in the third quarter.

The Daily Journal’s highly concentrated portfolio consists mainly of U.S. bank stocks and a South Korean steel-making company called POSCO. The second foreign company owned in the portfolio is Alibaba, which increased by 136,740 shares in the quarter to more than 300,000, worth nearly $45 million. 

Munger, a longtime China bull, initiated a position in Alibaba between $227-$270 in the first quarter. Shares in the Chinese e-commerce company have been nearly halved this past year due to Beijing’s regulatory crackdown of big-tech and other industries. The current price per share average of the position is $191. 

A broad view of Chinese tech stocks via the NASDAQ Golden Dragon China Index shows the devastating blow by Beijing’s regulatory crackdown. Munger trying to buy the dip? 

 

Taking a look at the ratio of Chinese tech stocks versus American tech stocks, Asian tech stocks have been out of favor with investors due to regulatory uncertainties. Could that soon change? 

Munger has primarily invested in American companies, and it comes as a surprise that he has 18% of Daily Journal’s portfolio in the Chinese e-commerce stock. 

The billionaire’s move to double down on Alibaba follows the investing advice of his partner, Warren Buffett, who famously said: “Be fearful when others are greedy, and greedy when others are fearful.”

Tyler Durden
Thu, 10/07/2021 – 12:40

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