Charlie Munger.
Nati Harnik is an AP Images photographer.
The billionaire investor doubled his stake in the Chinese e-commerce giant as the stock price of the company fell.
The vice-chairman of the board of directors of the company, Munger, turned 98 on New Year's Day. He's been the chairman of Daily Journal since 1977 and manages the newspaper publisher and software supplier's investment portfolio.
In the first quarter of 2021, the veteran stock picker bought 165,000 American Depositary Shares of Alibaba. In the third quarter of the year, he boosted his position by over one million shares, regulatory disclosures show. In six months, Munger grew his holding by 260%, when the stock price of the company almost halved.
Increased regulatory scrutiny and tougher rules have hit Chinese technology stocks hard. China's market regulator fined the company this week for failing to report deals, after it was fined a record $2.8 billion for abusing its market dominance.
The Daily Journal's US stock portfolio was worth about 28% of its total value on December 31. Munger spent between $42 million and $53 million doubling his position last quarter, based on the stock's trading range. The portfolio was worth $259 million and only contained five stocks at the end of December.
Daily Journal's total unrealized gains increased by 77% despite its tough run with Alibaba, as it recorded a 94% gain on its investments in the year to September 30.
The Smead Value Fund beat 99% of its peers. The managers share where they're putting their money and they're betting big on 3 of them.
Business Insider has an original article.
