Charlie Munger Called Alibaba 'One of the Worst Mistakes I Ever Made'—Now It's Up 74% Since His Death, and That 'Goddamn Retailer' Is Surging
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Charlie Munger wasn't just Warren Buffett's right-hand man—Buffett once called him the "architect of Berkshire Hathaway." He was a machine of rational thinking, known for cutting through Wall Street hype with a few words sharper than most analysts' full reports. But even the sharpest minds miss the mark now and then.
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In 2021, Munger made a bold bet on Alibaba (NYSE:BABA). He didn't whisper it either—he went all in through the Daily Journal Corporation, where he served as chairman, snapping up 165,000 shares of the Chinese tech giant. As the price dropped, he doubled down, building the position to over 600,000 shares—worth about $72 million and nearly 30% of the portfolio.
Then came the U-turn.
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The same man who had praised Alibaba's strategic positioning in China's internet ecosystem called the move "one of the worst mistakes I ever made." At the Daily Journal's 2023 annual meeting, Munger admitted:
"I got charmed by the idea of their position in the Chinese internet; I didn't stop to realize they're still a goddamn retailer. It's going to be a competitive business, the internet — it's not going to be a cakewalk for everybody."
He also added, "I keep rubbing my own nose in my own mistakes like I'm doing now because I think it's good for myself."
Alibaba's stock had been battered by regulatory crackdowns, founder Jack Ma's disappearing act, and a broader market chill toward Chinese companies. Munger criticized Ma directly, calling him "very arrogant" for publicly taking shots at Chinese regulators.
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At that point, it seemed like a rare Munger misfire. The stock had nearly halved, and Daily Journal started trimming its stake. By Q1 2024, the holding was down to 195,000 shares—worth just $16.5 million at the time.
But then something happened.
Since Munger's death in November 2023, Alibaba stock has rebounded—hard. It's up 74% according to Business Insider, driven by surprisingly strong earnings and a push into artificial intelligence. In February, Alibaba blew past analyst expectations, reporting $38.5 billion in revenue and EPS of $2.93. AI products racked up triple-digit growth for six quarters in a row.