Munger provides comment to Barron's on BABA stock/ADR/VIE purchase:
"In response to a request for comment on the investment, Munger, who is also the vice chairman of Berkshire Hathaway (BRKb), provided a statement to Barron’s:
“Daily Journal Corporation has and needs securities held as cash equivalents. These cash equivalents would normally be U.S. Treasury Bills. But, with returns on Treasury Bills now so low, the Company instead, invests in common stock. And, unless its long term prospects seem good, a common stock is not considered to be a good cash equivalent.
“A minor part of Daily Journal Corporation’s cash equivalents now consists of a tiny amount of Alibaba common stock.”
Says something about Munger's thoughts regarding the "safety" of the BABA investment. Considers BABA to be a "cash equivalent"? WOW! Need to think more about this.