Charlie Munger Plunges Deeper Into Alibaba

Munger’s Daily Journal was added to only one parent company in the third quarter.
Famous investor Charlie Munger (Trading, Portfolio), Chairman of the Daily Journal Corp.

.. (DJCO, Finance) released its portfolio for the third quarter to a California publisher earlier this week.

Vice President of Berkshire Hathaway

(BRK.A, Finance) (BRK.B, Finance), Manger is known for helping with his dry wit and inflamed heart. Warren Buffett (Deals, Portfolios) Making investment decisions. He has developed a lattice structure of mental models that help in solving serious business problems.

The Mungers Journal has 5 digits but only 1 in 3 months is added on September 30th.

The guru strengthened his position in Alibaba Group Holding Limited (BABA, Financial) by 82.71% in the quarter and bought 136,740 shares. The transaction had an 8.99% impact on the equity portfolio. The stock is trading at $182.30 per share on a quarterly average.

He currently owns a total of 302,060 shares, which is 19.86% of the stock portfolio.

The e-commerce giant, whose shares have fallen in recent months as the Chinese government deals with technology stocks, has a market cap of $388.4 billion. On Tuesday, the price-to-earnings ratio was 17.48, the price-to-book ratio was 2.56 and the price-to-book ratio was 3.37 and is trading at around $143.14.

He points out that the current stock price is significantly undervalued based on historical metrics, historical yields and projected future earnings.

GuruFocus rates Alibaba’s financial condition 7 out of 10. The company is in good shape with good cash leverage, comfortable interest coverage and a solid Altman Z rating of 3.83. The return on invested capital also exceeds the weighted average cost of capital, indicating that excellent value added is added as the company grows.

The company’s profitability increased slightly by 8 out of 10 points. Despite declining operating margins, Alibaba has good returns on stock, assets and capital that outperform most of its competitors, and an average Piotroski rating of 5. This is a typical stable company. Although sales and revenue continue to increase, three out of five stars are in the spotlight because of their predictability. According to GuruFocus, companies with this rating have an average annual turnover of 8.2% over a decade.

Baillie Gifford (Trades, Portfolio) is Alibaba’s largest shareholder with 0.95%. Other top guru investors are: PRIMECAP Management (Transactions, Portfolios), Kenneth Fisher (Trade, Portfolios), Dodge & Cox, Frank Sands (Transactions, Portfolios), Pioneer Investments, Chase Coleman (Transactions, Portfolios), Chris Davis, Wallets) , Al Gore (transactions, wallets), Ronbaron (transactions, wallets), Sarah Ketter (transactions, wallets, First Eagle Investment (transactions, wallets)), Tweedy Browne (transactions, wallets), Tom Russo (transactions, wallets ), Ray Dalio (transactions, wallets), David Erotic (transactions, wallets) and Jeremy Grantham (transactions, wallets).