Home Scholarly articles Charlie Munger’s Daily Journal posted a portfolio gain of $ 106 million in one year – and easily tripled his money on paper

Charlie Munger’s Daily Journal posted a portfolio gain of $ 106 million in one year – and easily tripled his money on paper


Charlie Munger.
  • Charlie Munger’s Daily Journal reported an investment gain of $ 106 million for the year ending September 30.
  • The newspaper publisher’s holdings jumped 94% to $ 348 million.
  • Munger’s gains were tempered by a sharp drop in Alibaba shares, which he bought in early 2021.

Charlie Munger’s Daily Journal posted a gain of $ 106 million on its investments for the year through September 30, even though its bet on Alibaba plunged in value.

Munger, who turns 98 on January 1, is best known as Warren Buffett’s business partner and the vice president of Berkshire Hathaway. He has also been Chairman of The Daily Journal since 1977 and manages the newspaper publisher and software provider’s investment portfolio.

The billionaire investor’s bets paid off in the 12 months leading up to September 30, the Daily Journal’s Annual Report revealed this month. The publisher’s portfolio, which has a cost base of $ 103 million, soared 94% to $ 348 million. The outperformance increased its total unrealized gains by 77% to $ 244 million.

Munger benefited from sharp increases in stock prices at Bank of America, Wells Fargo and US Bancorp, three of the Daily Journal’s biggest holdings at the end of September. It has only made one addition to the highly concentrated portfolio since at least 2013, which was spending $ 40 million on Alibaba’s American Depositary Shares (ADS) in early 2021.

It doubled in the quarter ended September 30, injecting an additional $ 25 million into the Chinese e-commerce group. However, Alibaba shares have fallen more than 50% this year in response to China’s crackdown on tech companies, reducing the value of Munger’s expanded stake to around $ 34 million today.

The Daily Journal also reduced its total number of positions from nine to seven in the last quarter, pocketing $ 45 million in pre-tax proceeds. The company noted that one of its largest holdings is a foreign manufacturer’s stock, and pointed out that one of its bets is denominated in Hong Kong dollars, supporting the idea that it has a stake. in BYD – Chinese electricity backed by Berkshire. car manufacturer that Munger has long admired.

Publisher revenues declined 1% to $ 49 million in the fiscal year ended Sept. 30, as higher advertising sales were offset by lower circulation revenues, consulting fees and license and maintenance fees. Still, the drop in costs means the company reported operating profit of $ 2.2 million, compared to an operating loss of $ 1.3 million for the fiscal year ended September 2020.