To The Moon

Munger greatly reduced his holdings of BABA, the investment master can not bear BABA?

It is worth noting that Munger also owns BYD in Chinese assets. If Munger changed his view on China's economic development, why did he choose to cut BABA instead of reducing his stake?

Putting aside the two major factors of the CSRC and the epidemic on both sides, Munger has been optimistic about the Chinese economy for a long time, and the CSRC has also "backed" Chinese stocks. Why did they run away before the dawn of Chinese stocks?

I think the two major reasons before Munger's reduction are: not optimistic about the harmonious development of US stocks in US stocks in the future and a change in BABA.

So after Munger's holdings are reduced, will he not buy it back?

Although Munger has reduced his holdings now, he has left half of his positions unfinished, so he has the possibility of coming back.

I think the negotiations between China and the United States will become an important consideration for Munger to increase his stake in BABA.

Another reason is whether Munger has changed the general Internet industry.

At the beginning of the epidemic in 2020, Buffett and Munger bought airline stocks together, and then Buffett chose to leave the market and sell aviation stocks totaling US $1 billion as the price of the epidemic fell.

Airline shares rose after the sale of $1 billion in airline shares, a move that was discussed at the time that Buffett made a mistake in selling airline shares.

But the stock god responded: "an industry with actual sales of less than $100 billion has lost a lot of money, they have lost their potential profitability and cross-border travel has not recovered. I think the aviation business has done better because of our sell-off. I hope they are all right, but I still don't want to buy the airline business."

Although Buffett and Munger seem to have sold aviation stocks in the short term, they do not regret leaving and are not optimistic about the aviation business in the long run.

What Buffett regrets is that Q4 sold a total of 51.76 million shares of Apple Inc in 2020.

After two years, Apple Inc became Buffett's most profitable stock.

Munger significantly reduced holdings of BABA this operation, is also BABA's business model has changed? As a result, you don't like BABA?

In the short term, the Internet is still in an awkward situation, and neither of them is optimistic that Chinese stocks will have a good life before the parents of both sides talk about it.

In the long run, why Munger wants to reduce his stake in BABA is worth thinking about. Even if he is warned of delisting, BABA can still return to Hong Kong shares.

Generally speaking, the reason behind the reduction is more the negotiation between BABA and the Sino-US Securities Regulatory Commission. The short-term effects of the epidemic and antitrust have been there all the time. Munger's increase all the way shows that he does not care about short-term factors.

This reduction has panicked many Chinese investors, but Munger may not have done the right thing, and Munger has reserved half of the bottom position, so it is not impossible to enter the market in a big way one day.

And the boss's operation is only for reference, copying homework is not necessarily right, Munger's "can not bear", may be to see more.

Charlie Munger greatly reduced his holdings of BABA, even Munger is not optimistic about BABA?

To tell you the truth, many people will be surprised to see that Charlie Munger has begun to reduce his holdings in BABA. After all, Charlie Munger, as Buffett's most important partner, has a great influence in the whole capital market. Charlie Munger invests in which company, the market value of which company is more easily recognized by the market, and Charlie Munger large-scale reduction of that company is likely to face huge market pressure. So what exactly should we think of some of Charlie Munger's actions?

First of all, we can think that for the whole market, it is not surprising for Charlie Munger to reduce his stake in BABA. After all, BABA's current stock price is really not ideal. If Charlie Munger wants to look at it from the perspective of simple financial investment or making money, BABA's loss is undoubtedly very serious, and it is normal for Charlie Munger to stop loss at this time. After all, no investor can let himself continue to lose money, effective stop loss is undoubtedly very right, of course, Charlie Munger's current position reduction is a bit too bad. We see that the loss of Charlie Munger in this reduction may be more than 40%. Many people will think that Charlie Munger should not wait for BABA's share price to rise further before reducing his holdings. But the current practice makes people deeply worry that Charlie Munger does not dare to believe BABA's future development of the stock market.

Secondly, if we carefully analyze some of Charlie Munger's current actions, we will find that his reduction may be related to the current situation of Chinese science and technology stocks, such as BABA, in the US capital market. at present, the pressure on Chinese technology stocks is very great, and the environment of the US capital market is becoming less and less optimistic. Therefore, under such circumstances, Charlie Munger may have a certain degree of worry, and he will choose to reduce his holdings from the point of view of the safety of the market itself. After all, such a large amount of money is placed in a stock in a relatively difficult situation. It is very likely that there will be risks. It can be said that Charlie Munger will reduce his holdings at this time, although meat cutting is also a means to make himself less risky.

Third, from the perspective of China's science and technology stocks as a whole, although these technology stocks listed in the United States are currently facing greater risks, the development prospects of China's science and technology industry as a whole are still promising. We still have every reason to believe that the possibility and future of China's science and technology stocks are still worth looking forward to. Therefore, if we look at it from this perspective, we still have to give Chinese technology stocks some time. The performance of US stocks may not be optimistic, but Hong Kong stocks still deserve the attention of the market. Therefore, we still need to look at the long-term value of technology stocks from the perspective of more long-term values. In fact, it is worth looking forward to.

@TigerStars

$Alibaba(BABA)$$Alibaba Group Holding Limited(BABAF)$$SPDR S&P 500 ETF Trust(SPY)$