Charlie Munger, 99, recalls his worst investment mistake

Charlie Munger spoke about one of his biggest investment mistakes

Charlie Munger, the 99-year-old vice chairman of Berkshire Hathaway, opened up about his biggest investment blunder on February 15.

At the Daily Journal annual shareholder meeting on February 15, Charlie Munger said investing in Chinese e-commerce and technology company Alibaba was a mistake. Munger was chairman of the Los Angeles-based newspaper publisher Daily Journal till last year and still serves on its board of directors.

According to CNN, the Daily Journal is a conglomerate that owns some individual stocks – including stakes in Wells Fargo, Bank of America and Alibaba.

“I regard Alibaba as one of the biggest mistakes I ever made,” Munger said at the shareholder meeting. “In thinking about Alibaba, I got charmed by their position in the Chinese internet and didn’t stop to realize, 'they’re still a gawd-damned retailer.'”

Alibaba shares nosedived in late 2020 after its co-founder and former executive chairman Jack Ma gave a speech criticising Chinese banks and regulators. Ma accused the state-run banks of having a 'pawnshop mentality' and called for new players that can extend credit to the collateral poor.

Alibaba began to face a series of regulatory hurdles after Ma’s speech, while the Chinese businessman largely disappeared from public view.

Munger referred to Ma’s speech in the February 15 meeting. “Pretty stupid,” he said. “It's like poking a bear in the nose with a sharp stick. It's not smart. And Jack Ma got way out of line by popping off the way he did to the Chinese government. And of course it hurt Alibaba.”