Charlie Munger Says Alibaba Was His Worst Trade: 'I Think It Got Over-Hyped'

In a recent interview, Charlie Munger, the late vice chairman of Berkshire Hathaway BRK, shared his insights on the investment in Alibaba Group Holding Ltd BABA. Munger’s comments come as a significant highlight, considering his renowned investment philosophy and the performance of Alibaba’s stock in recent times.

What Happened: In an interview with CNBC, Munger expressed his views on Alibaba, a company that has been a part of his investment portfolio.

Munger was asked by CNBC’s Becky Quick what was his worst trade. He said, “Well, my worst trade was buying a block for the Munger family in Alibaba, which is a pretty good company.”

“I think it got over-hyped. And Jack Ma was – made mistakes in dealing with the Chinese government.”

“I had some bad – everybody has some bad ones. You have an off day. The greatest tennis player goes out there some days to the center court and has a bad day. It happens,” said Munger.

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Why It Matters: Munger’s investment strategies have long been a topic of interest in the financial world. His approach, often aligned with that of Warren Buffett, focuses on buying and holding quality companies.

Alibaba, with its significant presence in the e-commerce sector and its recent recovery, represents such an opportunity in Munger’s view. This aligns with his long-held belief in buying wonderful businesses at fair prices, a strategy that has been instrumental in the success of Berkshire Hathaway, as detailed in a Benzinga article.

Munger’s recent comments on Alibaba also highlight his ability to remain steadfast in his investment convictions, even amidst market volatility and company-specific challenges. His passing marks the end of an era, but his investment principles continue to influence many in the world of finance, as noted in a tribute by Benzinga.

Price Action: On Thursday, Alibaba ADRs In New York closed 0.3% higher at $74.88 in the regular session and fell 0.5% in after-hours trading.

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