Munger Cries Uncle On Alibaba – He Likes BYD – I View FXI As A Call Option (FXI)

Munger Surrenders to Alibaba – Demonstrates Fondness for BYD – I Deem FXI a Bet

Billionaire Charlie Munger, the Vice Chairman of Berkshire Hathaway, has reversed his stance on Alibaba, the world’s largest online and mobile commerce company. Munger has previously been vocal in his aversion to the firm, but recently declared his admiration for the company, citing the firm’s “enormous success”. He has also recently displayed a fondness for Chinese automobile and battery manufacturer BYD, a company of which Berkshire Hathaway owns a 10% stake. Furthermore, he has discerned FXI – an exchange traded fund tracking the performance of the largest Chinese companies in the Hong Kong stock market – as a viable option for investors.

Munger’s shift in opinion concerning Alibaba comes after years of public criticism. In 2014, Munger described the company as “a kind of bubble” and said that it “wouldn’t last”. However, in a CNBC interview on Monday, he stated his admiration for the firm, and attributed its success to an “astounding management”. He went on to discuss the importance of understanding the company’s management before investing, and praised its management capabilities.

Munger has also recently demonstrated a fondness for BYD, a Chinese automaker and battery manufacturer of which Berkshire Hathaway owns a 10% stake. During his recent interview, Munger discussed the company’s prospects, and said that it has “great opportunities” and that it is “a very good business”. He also discussed the firm’s battery technology, and said that it is “very advanced” and potentially extremely profitable.

Lastly, Munger has identified FXI – an exchange traded fund tracking the performance of the largest Chinese companies in the Hong Kong stock market – as a viable option for investors. He described FXI as a “call option” with the potential to yield significant returns. He added that the fund could be an effective way to gain exposure to the Chinese market, and said that it has “a lot of upside potential”.

In sum, Charlie Munger has reversed his stance on Alibaba, expressing admiration for the firm and praising its management capabilities. He has also shown fondness for BYD, discussing its prospects and technology, and has deemed FXI a viable option for investors.