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Munger newspaper publisher and investment firm Daily newspaper (DJCO) revealed in a regulatory brief earlier this week that it has strengthened its position in Ali Baba (BABA) by nearly 83% in the third quarter.
The Daily Journal now owns more than 302,000 shares of the Chinese e-commerce and cloud giant, nearly doubling its position to 165,000 in the second quarter. Alibaba’s stake in the company is now worth around $ 45 million.
Alibaba shares jumped nearly 9% on Thursday and have gained more than 12% since Tuesday, the day the Daily Journal revealed its increased stake in the company.
Munger’s big bet on Alibaba is particularly noteworthy as he praised the Chinese government just a few months ago for cracking down on company co-founder Jack Ma.
“The Communists did the right thing,” Munger said of Ma’s treatment, who criticized officials in Beijing last year for stifling innovation. Munger made the comments on a CNBC special this summer, adding that he wished America’s financial regulators were more like those in China.
Munger said that while he wouldn’t want “the whole Chinese system” in the United States, he “would certainly like to have the financial part of it in my own country.”
Notably, Alibaba is the only headline in which the Daily Journal strengthened its position during the third quarter. Munger’s company remained stable with stakes in four other companies: financial giants Bank of America (BAC), US Bancorp (Usb) and Wells fargo (WFC) as well as a South Korean steelmaker Posco (PKX).
Alibaba isn’t the only Chinese stock to pick up in recent days.
Rival digital retailers JD.com (JD) and Pinduo (PDD) as well as technology companies Baidu (START) and Tencent (TCEHY) also rose, thanks to news that US President Joe Biden and Chinese President XI Jinping have agreed in principle to hold a virtual meeting later this year.
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