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

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.

In 2021, Munger made a bold bet on Alibaba 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.

Don't Miss:

• Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.55 per share now.
• These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

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.

Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.

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.

So was it really one of the worst mistakes of his investing career?

See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.

Maybe not. The rebound doesn't erase the pain of mistiming or the political risks Munger flagged. But the story of Alibaba now reads less like a disaster and more like a case of brutal short-term volatility that clouded long-term potential.

The Daily Journal still holds its smaller stake. Whether that holding grows again remains to be seen—but it's clear that what looked like a major blunder may have just needed more time.

Munger often said, "All I want to know is where I'm going to die, so I'll never go there." Turns out, even he couldn't always predict which bets would live and which would come roaring back from the grave.

Read Next:

• Many are surprised by Mark Cuban's advice for lotto winners: Cash or annuity?
• Jeff Bezos-Backed Arrived Homes Hits A Big Sale On Charlotte Property – Investors Earning A 34.7% Return