![]() ![]() 2021, BABA announced its $15.5 billion commitment to the Chinese Common Prosperity fundĢ. The major developments since 2021 Q3 are shown below, and they are:ġ. So let’s review BABA’s trouble since Munger’s last double down in Q3 2021. The business fundamentals have to be sound and trouble has to be temporary. The operative word is “temporary trouble”. We want to buy them when they're on the operating table." Indeed, such deals were the turning points in their investing career. Munger and his long-term business partner Warren Buffett famously said, "The best thing that happens to us is when a great company gets into temporary trouble. The thesis is what has happened between 2021 Q3 and Q4 best illustrates his wisdom of buying good business on the operating table.ĭataroma What did Munger see and why he doubled down - again? This article is an attempt to reengineer his thought process. So what did Munger see in BABA? More specifically, what has happened in 2021 Q4 that made him double down again? And Munger is the one who has the most concentrated bet (and probably also the most famous one). The rest either maintained their exposure or substantially increased their exposure. As you can see, only 2 of them reduced their position. The chart below shows the 10 super investors who have placed the most concentrated bets on BABA during 2021 Q4. It is a sizable position even for someone like Munger who likes to place concentrated bets.Īs a matter of fact, Munger is not the only one who has been buying BABA. The BABA position is now about 28% of the Daily Journal's stock portfolio. All told, Munger now holds a total of 602k shares of BABA, with a market value of $80M. The signal is even louder if you consider that he already almost doubled his stake in Alibaba in 2021 Q3, increasing his positions in BABA by 82% as you can see from the chart below. This news revealed that Munger increased his positions in BABA by 99.3% - doubling his bet on the company. 4 by the Daily Journal Corp., with Charlie Munger as its portfolio manager, still dropped a bombshell. Alibaba Group ( NYSE: BABA) has been attracting attention recently.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |