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hi team value JJ here welcome back well super investor Charlie manga has sold a big chunk of Alibaba stock poly of course because sadly he died earlier on this year at the age of 99 just before his H 100th birthday so somebody sold it for him let's get into it Daily Journal courp which he managed the money for has is really early and reporting that always early so we can see the trades that they've made in this last quarter so let's have a look now this is the view on ticket terminal which tracks investing gurus I've talked about it many times before and take a look so many different portfolios and this is Charlie mongers through the Daily Journal Corp and we can see here that theyve they sold quite a lot but Alibaba is the biggest sale here they've sold 35% of Alibaba so it's down to 7.62% of the portfolio now the shares they hold are 95,000 still and now it's down to just $14.1 Million worth of shares so is not that huge now and we can see that they've sold other ones too they sold 11.23% of Wells Fargo they've sold 133% of Bank of America stock and 14.64% of US Bank Corp as well now here we can see the complete activity of Charlie monga's buying and selling of Alibaba going back quite a few quarters we can see that in q1 2021 was the first time he bought and then then in Q3 2021 he added 82% so nearly doubling down there and in Q4 2021 doubling down again so buying 300,000 shares at that point but then in q1 1222 he sold 50% and the share price had gone down by that point and it was thought and he actually said this I think that it was for tax loss harvesting purposes and there it stood for quite some time since q1 2020 2 not much happened he just held there and then of course he died and we see after that they've taken 35% off that shareholding it remains to be seen whether they're going to sell all of it as I said he did say it was a mistake and we'll look at exactly what he said in public about that we don't know what he said in private of course but we do know what he said in public he said it in the Daily Journal annual meeting so we'll take a look at that let's see what he said about alibaba's stock is holding and investing in China in general Jack M was a dominant capitalist in Alibaba and one day he got up and made a public speech where he basically said the Communist party is full of Maly they don't know their ass able they know damn good and I'm smart and of course the Communist Party didn't particularly like his speech and pretty soon he just sort of disappeared from view for months on end and now he's out of byd it was pretty stupid it's like poking a bear in the nose with a sharp stick it's not smart and and jackma got way out of line by popping off the way he did to the Chinese government well there typically blunt Charlie manga talking about Jack M and of course since then Jack Mah has weighed in on Alibaba he wrote a memo which I covered in a video I'll put a link to that in the description if you want to take a look at that where he he commented on Alibaba that needs to really pull up at socks it can get back in the game and it he congratulated the competition which at the time was PDD for doing so well he said that Alibaba needs to you know get back in the game and do well and it can compete and so wouldn't it be interesting if Jack Mark came back if he's allowed to come back he's got to been reprimanded by the Chinese government has been out of it for a long time but he maybe he could come back we'll see what happens there but this is what Charlie M said at the time about that and of course it hurt Alibaba and but I regard Alibaba as one of the worst mistakes I ever made in in thinking about Alibaba I got Charmed with the idea of their position on the Chinese internet I didn't stop to realize there's still a goddamn retailer if you're getting value out of this Ali babber and Charlie manga if you're watching on YouTube or anywhere else there is a like button that helps the algorithm to spread it to more people and that's why what we want thanks because he's not against retailers one of his biggest stocks that he was really for is Costco and that is a retailer lowcost retailer so he it's not that he hates retailers but as he said there he thought thought it was a mistake the question for me is that if he had lived longer would he have sold Alibaba like they're doing now would he have waited we can see that they're doing BuyBacks I'll make a another video about that about the BuyBacks increased BuyBacks that they're doing what he waited a long time he was known for waiting a long time just sitting on stock so he did say it was a mistake but did he really mean it to the point where he'd be selling it it remains to be seen did he leave instructions to sell it we'll never know unless they actually come out and say it in the annual general meeting maybe somebody to ask that question and they will reveal it which would be interesting but we'll have to see it's going to be a competitive business the Internet it's not going to be a cakewalk for everybody previously you stated that despite certain shortcomings China was gener moving in the right direction however with the recent actions taken by the Chinese government such as capriciously punishing technology and educational companies declining to import effective covid vaccines escalating threats towards Taiwan do you still maintain that China is a viable investment option for foreign capital or is China experiencing a similar regression as Russia has seen under Putin's leadership that culminates in the invasion of Taiwan well that's a very good question of course but but I would argue the chances in a big confrontation from China have gone down not up because of what happened in the Ukraine I I think that the Chinese leader is a very smart practical person and it doesn't Russia went into the Ukraine because it look like a cakewalk I don't think Taiwan looks like such a cakewalk anymore I think it's off the table and Sh for a long long time well it's interesting what he said about Taiwan there in relation to Ukraine he thinks the risk isn't big and of course Warren Buffett doesn't think that because he bought shares for Burkshire hathway and Charlie Munga would have been involved in that decision or maybe not maybe Warren Buffett you know has takes the lead on that where they went into Taiwan semiconductor which he did say at the annual general meeting with Charlie manga beside him that it was one of the best companies in the world just in a bad location so he bought in billions of dollars worth it was quite a decent position for Berkshire hadway and then he sold out of it citing those concerns preferring Japan buying those big trading companies in Japan and staying away from China but Charlie manga had a different attitude towards that as we're seeing here I think that helps the prospects of investors who invest in China and the other thing that helps in terms of the China prospects are that you can buy the best you can buy better stronger companies at a cheaper valuation in China than you can the United States so you're getting the extra risk can be worth running given the extra value you get so from his point of view better value in China good companies and much better value than the US and the US market is much more elevated if you look at the equivalent US tech stocks those Mega cap companies well they're hugely Mega cap compared to Bara and you know the metrics is is so different if that bab's just been so beaten down and you know in the comments on these videos about Alibaba I get people saying that that you know alibaba's a fraud talking about the numbers uh lies and all this kind of thing and that never invest in China because of the CCP so Charlie M's got quite a different opinion here and I'm sure we'll get those comments again on this video and then there's people like Charlie manga and Ray Delio who say it's very investable that's why we're in China isn't like we prefer being in some foreign country of course I'd rather wa in Los Angeles right next to my house you know it would be more convenient but I can't find that many Investments you know right next to my house I I have more optimism about the leader of the Chinese party than most people do he's done a lot right too and and you know he let a big anti-corruption Drive he's done a lot of things right where is there a place where the government is perfect in the world of sun and sorrow the democracies aren't that brilliantly run either so it's natural to have some decisions made by government that don't work well it's natural to have decisions in each individual life that don't work very well we making the point there that nobody's perfect no government's perfect of course people especially Americans are really harsh on the Chinese government and what they do and they have these crackdowns on companies it has to be said that they do have a social purpose behind it they have this 5-year plan what they're doing but unlike Democratic countries they can really Implement things really fast and sometimes really harshly if we look at the lockdowns and when they went into those educational companies that were mentioned there they just shut them they can shut down whole sectors if they want to they don't see it being in the social good they can just shut them down and we're not used to that in Democratic capitalist countries of that those kinds of things happening things tend to move very slowly but he's he does as he said have more of an optimistic outlook on the Chinese government and the Chinese leader it in terms of the way they run it and the companies there so we'll have to see what happens in the future if the Chinese companies the tech companies and many other companies pull out of the slump that they're in of course the real estate market has gone down and they've got economic problems and Charlie M didn't live to see the turnaround there so that's why I wonder whether he would have sold these shares the way that they have or he would have just held on to it for the long term to see what happens if there was more upside especially if they buy back but we'll never know we'll never know what he thought andless they n he left instructions and they tell us explicitly what those instructions were which will'll be interesting to see now if you've been a subscriber for a while or you're new here you might like to check out the art of value patreon Community there's a growing amount of exclusive content over there and weekly updates I'm doing now just more candid comments about the weekend investing maybe see you over there now if you're watching this episode on YouTube as usual I'm going to put a link here to the video that the YouTube algorithm thinks that you would like to watch next are doing that and I'll see you in the next one
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