Charlie Munger Just Doubled Down on Alibaba: Should Investors Follow Suit?
In a recent regulatory filing, The Daily Journal (NASDAQ: DJCO) disclosed that it had bought more shares of Chinese giant Alibaba (NYSE: BABA) with its corporate cash. The decision was probably the work of Charlie Munger, Warren Buffett's partner and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) vice chairman. Munger is also the chairman of The Daily Journal and holds 3.6% of the company's shares.
Although The Daily Journal started off as a legal newspaper and is now transitioning to become a software company to local court systems, it uses its cash holdings to invest in equities, which make up a significant portion of the company's market cap.
While The Daily Journal's concentrated portfolio consists mainly of large U.S. banks, in the first quarter, Munger, a longtime China bull, bought a stake in Alibaba. With that investment having gone south this summer, The Daily Journal's recent disclosure shows Munger nearly doubling down on his bet as Alibaba's share price plummeted.
Source Fool.com
