Billionaire Charlie Munger’s fund only owns 4 shares

American billionaire Charlie Munger’s Daily Journal investment portfolio has only four shares – Bank of America, Wells Fargo, Alibaba, and US Bancorp.

In 2022 it also owned Posco ADR, but he sold 100% of his stake in the steel product producer in Q4 2022.

Munger is among the world’s best-known investors thanks to his relationship with Warren Buffett and the popular Berkshire Hathaway annual meeting.

Munger, vice chairman of Berkshire Hathaway, started his career as a real estate attorney. He later left to concentrate on managing investments.

Munger met Buffett through mutual friends in Omaha, and he gradually took over the role of Buffett’s business partner and investment advisor from Benjamin Graham.

Their friendship and the business relationship grew, and he became Buffett’s right-hand man and vice chairman of Berkshire Hathaway.

Munger has many business interests outside of Berkshire Hathaway, which included serving as the chairman of the Daily Journal newspaper for 45 years.

As part of his involvement at the newspaper, he oversees the Daily Journal’s investment portfolio.

In contrast with investors like Ray Dalio, who have very diverse portfolios, Munger owns very few stocks. He famously said that diversification is for the “know-nothing investors”.

“The idea that very smart people with investment skills should have hugely diversified portfolios is madness,” Munger said. “It’s a very conventional madness, and it’s taught in all the business schools. But they’re wrong.”

Munger practices what he preaches. Bank of America and Wells Fargo comprise 78% of his Daily Journal portfolio.

The only non-banking and non-US share in the portfolio is Alibaba, and he described the decision to invest in the Chinese tech giant as one of his biggest mistakes.

At the Daily Journal annual shareholder meeting, Munger said that Alibaba’s position in the Chinese Internet market charmed him. “I didn’t stop to realize they’re still a damned retailer,” Munger told shareholders.

He also slated Alibaba founder Jack Ma’s criticism of Chinese banks and regulators in late 2020.

Ma accused the state-run banks of having a “pawnshop mentality”, and it was not long before Alibaba and Ant were targeted by Chinese authorities through regulatory obstacles.

Munger said Ma’s speech was “pretty stupid”, equating it to poking a bear in the nose with a sharp stick.

“Jack Ma got way out of line by popping off the way he did to the Chinese government. Of course, it hurt Alibaba,” Munger said.

Charlie Munger’s Daily Journal Portfolio

Share	Value	Portfolio Percentage
Bank of America	$65,780,000	40.86%
Wells Fargo	$59,501,000	36.96%
Alibaba	$30,654,000	19.04%
US Bancorp	$5,047,000	3.14%