(#charliemunger, #stocks, #investing)
Charlie Munger is selling Alibaba shares. Munger, through the portfolio of the Daily Journal, has sold roughly half of the Alibaba (BABA) shares that were in the portfolio. These shares in Alibaba were purchased just a year ago and are already being sold. This video talks about this move in the Daily Journal’s stock portfolio as well as why Charlie Munger may be selling. The selling of Alibaba shares comes as a surprise to many follows of Munger as him and his business partner, Warren Buffett, are known for their buy and hold, long-term investing approach.
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There is a rumour on twitter (I am not sure if it's true ) that he bought tencent 0700.hk after selling Alibaba, tencent position now doubling that of alibaba, so he's holding 3 Chinese stocks over 40% of his portfolio: byd, baba and tencent, if you do not mention his protegé Lilu china investments. So he's pretty all-in on China.
Ghee I wonder if this applies to TWITTER?
Well if he sold he sold at a loss.
It’s obvious. The whole story goes further back. He never really doubled down in the first place. De last doubling down was part of the plan to sell his 2 initial stakes. So it’s actually a great show of confidence in Baba. Yes, he wanted to harvest his losses but he didn’t want to give up his 300k shares. That’s why he bought 300k more (the media picked this up as doubling down). But he only did this to be able to sell his initial stake of 300k shares and to remain with 300k shares. So Baba was never meant to be 25 percent of his portfolio, only temporary.
It could also be for tax-loss harvesting and he will buy back after 30 days or buy shares on HK exchange which doesn't show on 13F. My opinion this is the reason.
Liked and Subscribed.
I owned Chinese stocks for many years and just sold them all a month ago. I'll tell you my reasons, and I suspect Charlie Munger's reasons are the same: the Holding Foreign Companies Accountable Act (HFCAA). This act says explicitly that any company who has a member of the Communist Party of China on the board of directors will be delisted from any U.S. stock exchange. Jack Ma is a known member of the Communist Party of China (along with 100 million other Chinese citizens). Therefore, Alibaba will be delisted. And there is nothing Alibaba, the Chinese Government, or Charlie Munger can do about it. So he sold, and quite frankly, everyone should sell. The U.S. is out to destroy these investments and destroy Chinese companies. All you can do at this point is protect yourself.
I just got into Bitoon trading and I made my first, wish I knew about this earlier
Hé has lots of fantasy on China
$32,000 returns in just 16days, my financial life is totally changed
Charlie got played heavy by Xi 😆✌️⚡️👎🏾🇨🇳
I’m glad Charlie lost on this Investment in the CCP👎🏾 Don’t invest in countries that invest in harvesting their citizens organs and continue to perform genocide ⚡️👎🏾
Alibaba’s reliance on supply chain could be a reason.
Mungers wasn’t to smart on his Baba loss
Investing in stocks is like gambling. Even the best can lose money.
When someone is selling that means he already sold
He will re-invest it and make money again.
What I’m afraid is that he sold half of the position due to Russia invasion and the risks hence with Taiwan… Remember the daily journal question about Alibaba and China was one week before the invasion. What do you think guys?
You forgot to include tax loss harvesting
He sold all his share soon.
it might be the new CEO selling
Hey, I really enjoy watching your videos but I think I should make a suggestion to you that I think might help. The way that you modulate your voice throughout your video becomes a little bit droll because you modulate your voice the exact same way at the end of every sentence and it all just starts to feel like a lullaby. You might consider working with your inflection and the modulation of your sentences so it doesn’t just sound like a bunch of linked together sentences that were all recorded separately and then stapled together.
No offense, I think your videos are very informative but it sometimes it can be hard to stay focused with the way that you put your audio together.
Cheers
👍ℹ️
I just came across your channel and it is great to see a woman well versed in the financial space. It is good that women are growing their confidence in this area as well.
You claim that you have done a lot of fundamental research and even recommend some companies on this. Where is your analysis on the company’s financial position and outlook?
Good Chinese stocks is garbage 🤮🤮
munger is a vulture
RIP to all who bought at first drop after Ma got taken out
Why did he sell and should I off load half my position.
He was fully responsible for buying and selling. Anything else is bullshit. They make bad investments also. Don't forget the airlines .
I bought a little bit of BABA @ 104$ and thought it's cheap. Well we will see.
They could have transferred to Hong Kong shares which are unreportable. 🤔
How can u redeem the free stocks have opened an account but can't seem to get them on webull…anyone to help
Shiet! Im deep in the water. Should we all sell Baba ?
Munger should not be breathing.
He doesn't deserve it.
Lol, the man advocating china investment. WORST. ADVICE. EVER.
Can you explain about mr. buffet latest investment?
Against my better judgement I will actually comment on an investment video, for once, since I know why he sold.
1. The most important thing to understand is that the DJCO Fiscal year end 9/30. This means that the company's tax year runs from September to September.
2. Therefore, Charlie Munger sold about $37 billion of Alibaba to help offset about a $47 million gain from the sale of an undisclosed security, most likely BYD.
3. In q4 2021 (q1 of the tax year) Charlie doubled down on Alibaba in an amount virtually exactly equal to the shares he already held. In q4 of 2021 Charlie sold off what is likely BYD. Why did he buy more Alibaba? because he still thinks it is a great company and doing so now allows him to offset the capital gain of BYD. Better yet, I'm pretty sure he bought the new Alibaba shares with margin debt.
4. I'm pretty sure Charlie then had to wait 3 months to sell Alibaba to avoid a wash sale, hence the timing differences.
So now, not only does he get the gain from Alibaba without having to put in much capital but he also gets to use his original capital to offset the gain in BYD. Absolutely genius. (don't forget that Charlie was once a lawyer)
I wish I could take credit for figuring this out first but someone way smarter than me pieced it together first.
Good video! We just truly don’t know why did he sell! But thank you for the video
There are two best possible reasons:
1) He bought part of his stake on margin and wanted to deleverage. This is the biggest sign of him expecting even higher interest rates from the feds in the future.
2) He's tax-loss harvesting. He didn't sell his entire stake, which is a great sign. If he no longer has conviction in it, he won't hold a single share. Tax-loss harvesting deadline was early March so this reason also makes sense.
I am waiting a video on Ackerman and NFLX
If you dont know. My alibaba's order, has totally halted.
it has been since a week plus ago.
almost half of china is in lockdown…
Tbf he might just have transfered his stock to the Hong Kong company, in which case we can't tell in the holdings on bloomberg etc
Maybe he realized he made a mistake which proves that even at 98 you don't know everything.
👋 Present 👋
Good videos and explainations
Taxs reasons
I recall him buying at around $215-225 – Yikes