Munger bought his initial stake at around $246 per share.
Munger was probably convinced this was a passing phase and things will get back to normal after Jack Ma is “taught” a lesson in adhering to the government line. He doubled down and kept adding as the stock kept falling. He added substantial quantities in the July-September quarter around $182 and again in the October-December quarter around $145. Each time he nearly doubled his position from before. He probably realised his mistake and sold half his position in the January-March quarter of 2022 ..
Munger said he remains optimistic about China’s economy, but conceded that Daily Journal’s investment in Alibaba was “one of the worst mistakes I ever made.”
“I never stopped to think [Alibaba] was still a retailer. It’s going to be a competitive business,” he said.
Munger was questioned as well about why he (and Buffett) prefer to own shares of Chinese electric vehicle maker BYD as opposed to Elon Musk’s Tesla (TSLA).
“BYD is so much ahead of Tesla in China it’s almost ridiculous,” Munger said. But he conceded that it’s an expensive stock. Berkshire has been trimming its stake in BYD over the past year.
Munger, who has been a significant critic of bitcoin and other cryptocurrencies, continued his attack on digital assets Wednesday, continuously referring to crypto as a four-letter curse word used to describe excrement.
“I think people who oppose my position are idiots,” he said, adding that investors should avoid people who promote cryptocurrencies, once again saying that cryptocurenecies are “worthless,” “crazy,” “ridiculous” and “unspeakable.”
Munger also recently wrote an opinion piece for the Wall Street Journal suggesting that the US ban cryptocurrencies.
Investors may hear more from Munger in just a few months. He is expected to appear with Buffett in Omaha on May 6 at Berkshire’s annual meeting.
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