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Charlie Munger applied Warren Buffett’s investor advice to “be greedy when others are fearful” by doubling down on Alibaba stock while others exited the online commerce giant.
Source: Markets Insider
Alibaba up +7.91%
Daily Journal, owned and managed by Munger, bolstered its Alibaba ownership by 83% to over 300,000 shares in Q3. The move marked its only addition to its US stock investment since the end of 2013.
Munger invested $40 million into Alibaba in the first quarter and likely invested another $25 million last quarter depending on the stock’s average closing price in the period.
Meanwhile, Alibaba’s US-listed shares have sharply fallen nearly 40% this year after the Chinese government’s crackdown on technology companies.
As of June 30 this year, Daily Journal had invested in only nine stocks, valued at $350 million. It held Bank of America, Wells Fargo, US Bancorp, and South Korean Steelmaker Posco.
Munger has largely invested in American companies such as Coca-Cola and Costco in his entire career, making his best on Alibaba is surprising.
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