Charlie Munger Uses Margin to Buy $BABA - Punch Card Investing [Ep. 45]

Charlie Munger used margin to buy $BABA. When does it make sense to use margin, if ever?

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[MrShiva]

Jason is a great value addition. Please make him the permanent member of this elite panel

[thriftyinvestor]

This was a great episode, love hearing more of Karan's perspective

[christopherpoirier]

I would really like to see the After Dinner Investor fill in again. He brings some energy and humor to the show..

[sebfox]

At 42:00, Tom is looking to buy the top of the North island...and then expand South until he owns the whole island!

[JackDuffley]

Today I learned that I look like a Christian.

[mawean]

From my understanding, the „margin“ DJCO used was based on dividend payments by the banks (e.g. BAC) in DJCO‘s portfolio. Thus, the probability of a margin call seems very limited (i.e. being independent from the actual performance of the underlying stocks). Any comments on this?

[thenon-gaapbillionaire]

I have a question about tencent.
The "fair value of non-subsidiary listed investments" is about $150B USD.
How much of these investments are consolidated as to contribute to Tencent's Revenue and Income numbers?
If the bulk of these 150B are unconsolidated, then we could treat it as a form of cash and subtract 150B from the market cap of the company. It would make Tencent's 'true' PE ratio closer to 13x rather than 20x.

[zachhesse]

Got that baba cost basis down to 129. I really need some headwinds honestly. My position is nowhere near the size I want. Plan to hold 3-5 years / longer if things go well. Hope your fb goes well. One of my partners just loaded up on it. I’m a bit worried about the metaverse but they have revenue for miles

[mknox]

When real interest rates are negative, or very low, I think there is a strong rational argument to use margin. I like to borrow about 10-20% of my portfolio on average. I do have access to additional liquidity through line of credit at fairly low rate that I could tap if things got ugly. I sleep fine with this set up and the additional return is material.

[carstenprause]

Do we know if Munger still holds any Byd stock within DJCO and if so how much

[allaview]

would munger's posco investment be a failure? (waited 10 years but still made losses and sold majority) How about BAC? (made two fold over 8ish years)

[cookiejar]

Here in the UK I have an option to take out a personal loan of up to £25, 000 at an interest of about 3%. For me that's kind of fixed, non-callable leverage opportunity. I haven't used it but if the market has a proper crash I'll definitely do that.