Charlie Munger's Final Call on Alibaba Stock.

TL;DR

Charlie Munger's recent 13F filing shows that he has not made any changes to his position in Alibaba, indicating that he intends to hold the stock for the long term.

Transcript

charlie munger despite being 98 years old is without doubt one of the smartest minds that lives today from a young man who simply dreamed of financial independence he's now worked alongside warren buffett to not only become a multi-billionaire but also one of the best value investors the world has ever seen and that's why when it was revealed he wa... Read More

Key Insights

• 🧘 Charlie Munger's recent 13F filing shows that he is maintaining his position in Alibaba, indicating his long-term belief in the company's prospects.
• 🙈 Munger's lack of activity in the Q2 filing aligns with his philosophy of patience and doing nothing, suggesting that he sees no need to make any changes.
• 🌸 It is likely that Munger's actions in Q1 were motivated by tax loss harvesting rather than admitting to a mistake in his investment.
• 🔬 Investors should consider the risks associated with investing in Alibaba, including potential regulatory changes and the Holding Foreign Companies Accountable Act.
• 🫵 Munger's stance on investing in China and Alibaba is consistent with his previous statements, indicating a positive view of the company's potential and value.

Questions & Answers

Q: Did Charlie Munger completely sell off his Alibaba position in Q1 2022?

No, Munger only sold half of his Alibaba position in Q1 2022, suggesting that he was likely tax loss harvesting rather than admitting to a mistake.

Q: How does Munger's investing philosophy of patience and doing nothing align with his lack of activity in the Q2 2022 filing?

Munger is known for his long-term approach to investing, and his lack of activity in the Q2 filing suggests that he believes in the long-term potential of Alibaba and sees no need to make any changes.

Q: What risks are associated with investing in Alibaba?

There are several risks to consider, including potential regulatory changes in China that could impact the company, as well as the Holding Foreign Companies Accountable Act, which could require Chinese companies to allow audits by the US public company accounting oversight board.

Q: How does Munger's stance on investing in China and Alibaba align with his recent actions?

Munger has previously expressed confidence in investing in China and has stated that he believes Alibaba is a strong company. His recent filings and statements indicate that he still holds a positive view of the company for the long term.

Summary & Key Takeaways

• Charlie Munger, famous investor and business partner of Warren Buffett, has been buying Alibaba shares since Q1 2021, doubling down on his position in Q3 and Q4 of the same year.

• In Q1 2022, Munger surprised the investing world by cutting half of his Alibaba position, leading to speculation about his motives.

• Munger's Q2 2022 13F filing reveals that he has made no changes to his Alibaba position, suggesting that he believes the company is a wonderful business and intends to hold it for the long term.