Charlie Munger Stock Portfolio: 10 Biggest Positions

Published November 1, 2021 at 8:29 am EDT Updated September 7, 2026 at 1:05 pm EDT

In this article, we discuss the 10 biggest positions in the Charlie Munger stock portfolio.

Charlie Munger is a name in the finance world that is often associated with Warren Buffett, one of the most successful investors of all-time. However, the success of Buffett over the years, according to his own admission, has been in large part due to the advice and help of Munger. A six-decade long ongoing friendship turned into a business relationship in 1978. Munger owns Daily Journal Corporation, a publishing and technology company by core interest that has an impressive stock portfolio as well.

Munger thrives on a value investing strategy that places an emphasis on quality over quantity. The portfolio of Daily Journal Corporation consists of just five stocks. It is close to $225 million in value and comprises largely of finance companies. In recent months, Munger has invited controversy in the media with long tirades about the development of Bitcoin, the most popular cryptocurrency. At a meeting earlier this year, he termed Bitcoin “contrary to the interests of civilization” and also termed new developments in the crypto world “disgusting”.

Some of the biggest positions to consider based on the stock portfolio of Charlie Munger over the years include Berkshire Hathaway Inc. (NYSE:BRK-B), Costco Wholesale Corporation (NASDAQ:COST), and American Express Company (NYSE:AXP), among others discussed in detail below. Munger still sits on the board of Costco even though Buffett has exited. Investors eager to explore his portfolio in detail should check out some of the top holdings in Daily Journal Corporation, which are all discussed below.

Charlie Munger

Our Methodology

Here is our list of the 10 biggest positions in the Charlie Munger stock portfolio. Five of these are from the investment portfolio of Daily Journal Corporation. The rest were picked from the investment history of Munger and his associates, as well as the comments made by the investor over the past few years.

The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Charlie Munger Stock Portfolio: Biggest Positions

10. POSCO (NYSE:PKX)

Number of Hedge Fund Holders: 12

POSCO (NYSE:PKX) is a Korean firm that makes and sells steel products. At the end of the second quarter of 2021, Daily Journal Corporation owned more than 9,000 shares in the company worth $748,000, representing 0.35% of the portfolio. POSCO recently made an offer to purchase Senex Energy, an Australian oil producer, and a deal is in the works. In July, POSCO had announced that it expected a 1,300% surge in operating profits during the second quarter.

In early July, POSCO had announced that it had signed an MoU with Rio Tinto to explore and develop new technologies that will help lower the carbon emissions in the steel value chain across the globe.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in POSCO with 992,644 shares worth more than $76 million.

Just like Berkshire Hathaway Inc., Costco Wholesale Corporation, and American Express Company, POSCO is one of the stocks on the radar of elite investors.

9. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 41

Daily Journal Corporation, at the end of June this year, owned 140,000 shares of U.S. Bancorp (NYSE:USB) worth close to $8 million, representing 3.74% of the portfolio. The holding is one of the smallest in the portfolio. US Bancorp operates as a financial services holding firm and was founded in 1863. It employs over 70,000 people. The stock is exactly the kind of stable offering that value investors love to hold. The business fundamentals of the firm are strong. It recently beat market expectations on earnings per share and revenue.

On October 15, investment advisory RBC Capital reiterated an Outperform rating on U.S. Bancorp stock and raised the price target to $66 from $62, noting that the core business of the firm was driving industry-leading profitability.

At the end of the second quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $8.30 billion in U.S. Bancorp, down from 43 the preceding quarter worth $8.33 billion.

In addition to Berkshire Hathaway Inc., Costco Wholesale Corporation, and American Express Company, U.S. Bancorp is one of the stocks that hedge funds are buying.

In its Q4 2020 investor letter, Mairs & Power, an asset management firm, highlighted a few stocks and U.S. Bancorp (NYSE:USB) was one of them. Here is what the fund said:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”

8. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 87

Bank of America Corporation (NYSE:BAC) is the largest holding of Daily Journal Corporation. At the end of June, the investment firm owned 2.3 million shares in the bank worth over $94 million, representing nearly 44.5% of the portfolio. Munger invested in the bank at the height of the 2009 financial crisis when the S&P 500 had bottomed and investors were fleeing the stock market. Munger made use of the time and purchased a stake in the bank at an absolute bargain price. The gamble has paid off handsomely for the investor.

Wells Fargo analyst Mike Mayo recently raised the price target on Bank of America Corporation stock to $60 from $55 and maintained an Overweight rating, noting the tech-driven gains around the business in recent months.

At the end of the first quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $46 billion in Bank of America Corporation, down from 97 in the previous quarter worth $45 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”

7. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 94

Wells Fargo & Company is another large holding of Daily Journal Corporation. Even though Buffett has been slashing his stake in the company over the past few months, Munger hasn’t followed suit. Filings from the end of June indicate that his investment firm owned over 1.5 million shares in the bank worth $72 million, representing 33% of the overall portfolio. The holding remained unchanged from the one in the previous quarter.

Wells Fargo & Company has been rebuilding the mobile application for customers and has introduced a new virtual assistant feature in the revamped version. More than 27 million users of the bank will have access to the app.

At the end of the second quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Wells Fargo & Company, down from 96 in the previous quarter worth $7.4 billion.

Berkshire Hathaway Inc., Costco Wholesale Corporation, and American Express Company are some of the top stocks to buy now, just like Wells Fargo & Company.

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:

“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”

6. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 146

Even as a government crackdown results in a pullback in share prices of dual listed Chinese stocks like Alibaba Group Holding Limited (NYSE:BABA), Munger, who made headlines for saying that Chinese firms were stronger than American ones in terms of global clout, has doubled down on his bet on Alibaba. Regulatory filings from the end of June this year reveal that Daily Journal Corporation owned over 165,000 shares in the company worth $37.4 million, representing 17.59% of the portfolio.

Alibaba Group Holding Limited founder Jack Ma, who had not been seen in public since October 2020, appeared for the first time while meeting business associates in Hong Kong last month, laying to rest rumors about his arrest.

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited with 14 million shares worth more than $3.2 billion.

Berkshire Hathaway Inc., Costco Wholesale Corporation, and American Express Company are some of the elite stocks to buy now, alongside Alibaba Group Holding Limited.

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 52

The investment made by Buffett and Munger in American Express Company has been one of the biggest success stories of their careers. The duo started buying the stock in 1963 after a business scandal pulled back the share price. Over the years, the company has transformed into one of the most successful payments firms. However, the rise of fintech and crypto is now threatening the legacy position of the firm, but Munger, while acknowledging the dangers faced by the firm, remains bullish on it.

BMO Capital analyst James Fotheringham recently raised the price target on American Express Company stock to $151 from $147 and kept a Market Perform rating on the shares, appreciating the earnings beat of the firm in the third quarter.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company with 15.3 million shares worth more than $2.5 billion.

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:

“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 54

It is no secret that Munger is not an admirer of internet stocks like Amazon. Instead, the legendary investor believes that Costco Wholesale Corporation, another retailer and one of the premier competitors of Amazon, presents much better value for money. He has expressed this sentiment publicly numerous times. In the annual meeting of his Daily Journal Corporation earlier this year, Munger said that people “trusted” Costco to deliver enormous values, noting that this seemed to be one thing that Amazon did not have.

Costco Wholesale Corporation has a solid business foundation with an impressive dividend history. On October 13, the firm declared a quarterly dividend of $0.79 per share, in line with previous. The forward yield was 0.71%.

At the end of the second quarter of 2021, 54 hedge funds in the database of Insider Monkey held stakes worth $4.3 billion in Costco Wholesale Corporation, down from 56 in the preceding quarter worth $4 billion.

In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:

“We saw these dynamics at play in the Fund. Some of the worst-performing stocks this quarter were among our best performers in Q1 2020. Another example was the market’s reaction to Costco Wholesale (1.5% weight in the Fund) during the quarter. From December 31, 2020 to March 8th, Costco shares declined 17% and dropped below their pre-pandemic high. The common rationale offered by sell-side analysts was that Costco would face difficult one-year “comps” (i.e. same-store sales, which compare sales from stores open for at least a year). Because so many consumers rushed to Costco ahead of shelter-in-place and subsequent quarantines, it will be harder for Costco to meaningfully beat those results when compared year-over-year. That may indeed be true, but we struggle to understand how Costco could be “less valuable” than it was a year earlier when it concurrently increased its membership base by over 7%, or 3.9 million members. With membership renewal rates around 90%, the vast majority of the new customers Costco brought in last year will be around for years to come.

Analysts also complained about Costco raising its already industry-leading minimum wage to $16/hour, with an average “effective” pay of $23-$24/hour when you include overtime and bonuses. Costco paying its employees “too much” has been a common gripe of Wall Street analysts for at least two decades. While the extra pay does indeed impact short-term profit margins, it also serves to make Costco more durable, as its flywheel (i.e. a virtuous value cycle) starts with happy employees. A 20-year chart of Costco stock price is evidence that this strategy works and we’re confident that it will continue to work.”

3. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 116

Charlie Munger is a long-time associate of Warren Buffett, the chief of Berkshire Hathaway Inc.. Munger is also the Vice Chairman of the firm. Both investors have pioneered a value investing strategy at the company that has transformed it into one of the most successful conglomerates in the world. The firm is among the top 15 most popular stocks among hedge funds and has a solid business foundation.

After long tenures at Berkshire Hathaway Inc., Munger and Buffett, both in their nineties now, have slowly given way to new leadership at the firm. Susan Buffett and Christopher Davis were recently named to the board of the company.

At the end of the second quarter of 2021, 116 hedge funds in the database of Insider Monkey held stakes worth $22 billion in Berkshire Hathaway Inc., up from 111 in the preceding quarter worth $19 billion.

In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:

“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”

2. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 59

Zoom Video Communications, Inc. (NASDAQ:ZM) features on our list of the biggest positions in the Charlie Munger portfolio because the veteran investor, in an interview with news platform CNBC in June, said he had “fallen in love” with Zoom and believed that Zoom calls, a key feature offered by the firm on the Zoom platform, were “here to stay”. Usually, this level of confidence in the product of a company, displayed publicly, is rare for a man like Munger.

On October 22, investment advisory JPMorgan upgraded Zoom Video Communications, Inc. stock to Overweight from Neutral with a price target of $385. Sterling Auty, an analyst at the firm, issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Tiger Global Management LLC is a leading shareholder in Zoom Video Communications, Inc. with 4.2 million shares worth more than $1.6 billion.

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them. Here is what the fund said:

“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”

1. Micron Technology (NASDAQ:MU)

Number of Hedge Fund Holders: 87

Micron Technology (NASDAQ:MU) is the top holding of Himalaya Capital, an investment firm founded by Li Lu in 1997. Charlie Munger and Warren Buffett were persuaded to invest in Chinese companies through Lu, who introduced the duo to BYD, a Chinese electric vehicle maker. Like Munger, Himalaya Capital has a small portfolio, consisting of only five holdings that include Apple, Facebook, and Alphabet, in addition to Micron and Bank of America.

JPMorgan analyst Harlan Sur has an Overweight rating on Micron Technology stock with a price target of $100. The analyst, in an investor note, claimed that the overall demand environment for the firm remained “healthy” despite PC shipment weaknesses.

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology, down from 100 in the preceding quarter worth $7.6 billion.

In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:

“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.

With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.

As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.

While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.

The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”

You can also take a peek at 10 Stocks that Helped Warren Buffett Make $4.6 Billion in Dividends and 10 Best Dividend Stocks with Over 5% Yield According to Hedge Funds.

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