Charlie Munger Nearly Doubles Stake in Chinese Internet Giant Alibaba

Jan 06, 2022, 19:25pm2022/01/08 00:43:44 Pandaily

Daily Journal Corp, the newspaper and software company owned by Charlie Munger, a close business partner of Warren Buffett, disclosed on Wednesday that it had increased its stake in Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> in the US stock market.

According to the 13F filing submitted by Daily Journal Corp to the US Securities and Exchange Commission in the fourth quarter of 2021, by the end of 2021, the company held 602,060 American depositary shares of Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Group Holding Ltd, almost double the 302,060 shares it had at the end of September.

According to data platform Whale Wisdom, the portfolio held by Daily Journal as of the end of the reporting period was worth $258 million. In the fourth quarter of 2021, the only operation of this company was to buy 300,000 shares of Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />, increasing the total to 602,000 shares.

In addition, the company also holds shares in Wells Fargo, Bank of America, Posco and US Bancorp, and these investments have not changed since the end of 2020.

Daily Journal Corp initially bought Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />‘s US stocks in the first quarter of 2021. At the end of March, it held 165,320 shares, which was worth about $37.5 million, based on the stock price at that time.

On November 18, 2021, Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> released its financial report for the second quarter of fiscal year 2022, as of the end of September 2021. According to the report, Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />‘s revenue in the second quarter was 200.69 billion yuan ($31.47 billion), up 29% year-on-year. The non-GAAP net profit decreased by 39% year-on-year to 28.524 billion yuan, and non-GAAP diluted earnings per the US depositary share decreased by 38% year-on-year to 11.20 yuan. Adjusted EBITDA (a non-GAAP financial indicator) decreased by 27% year-on-year to 34.84 billion yuan.

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Based on the uncertainty about the current economic environment, Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> also lowered its total revenue guidelines for fiscal year 2022. It is estimated that the total revenue in fiscal year 2022 will increase by between 20% and 23% year-on-year, while the previous forecast growth rate was close to 30%.

As of the close of US stocks on January 5, Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />‘s stock price rose by 1.36%, after increasing as much as 5% during intraday trading.