Munger Doubles Down on BABA

Doubles down again on BABA w/ another 300k share purchase in Q4.…


Oops. Here is recent DJCO recently filed 13F:

DJCO now owns 600,000 shares/ADRs/VIE’s:…

Please do not post more news links about Alibaba, not as any post is individually bad at all (and it is good to cite news directly from China rather than our filtered info; good work to the extent that was done), but because the number of OT and news-attention posts are becoming disproportionate.

Does this news really effect the IV10 calculation (as distinct from price-movement hopes and wishes)? If so, why, and what is the revision? If not, consider to not post it.

Discussions are supposed to be about the Manlobbi Method:

  1. Identifying Steadfast firms. That includes non-Alibaba. Don’t worry if you are alone with this, but make sure you personally know it is Steadfast.
  2. Calculating the IV10/price ratio (if step 1 good in your own eyes) and updating the ratio over time as the quote changes. (Changes to IV10 are typically benign compared to changes in price, so the ratio does change and that gives us chances to move capital around really advantageously occasionally.)
  3. Concentrated allocations - to only the higher IV10/price ratios, and switching between different firms having large differences in the IV10/price.

If you don’t understand these terms, please read early posts; there are not too many.

As a corollary:
4. Avoiding news-noise, gossip, excessive price attention, and anything else you would not care about if you owned 100% of the firm.

On topic posts are not only about such investment candidates but can also be about the Manlobbi Method itself.

  • Manlobbi