What are some case studies of Charlie Munger's practices in global diversification?

Case Studies of Charlie Munger's Global Diversification Practices

Hey there! I'm a veteran in the investment world and love studying the strategies of Munger and Buffett. Charlie Munger, as everyone knows, is the Vice Chairman of Berkshire Hathaway and has partnered with Buffett for decades. He’s not the type of investor who only focuses on the U.S. market. Though Berkshire is primarily U.S.-based, Munger strongly emphasizes a "global perspective" and diversified allocation. Simply put: Don’t put all your eggs in one basket. Look for opportunities worldwide to reduce risk and capture more growth.

Munger’s philosophy is value investing, but it’s not rigid. He often stresses multidisciplinary thinking—economics, psychology, and more—which helps him allocate assets beyond a single country. Below are a few real-world examples based on public records and his interviews. I’ll keep it simple and conversational, not too academic.

1. Investing in China’s BYD: A Global Leap from Autos to New Energy

What happened? Around 2008, Munger facilitated Berkshire Hathaway’s investment in BYD, a Chinese company that started with batteries, pivoted to electric vehicles, and is now a global new-energy leader.
Why diversification? Munger bet on founder Wang Chuanfu’s potential (calling him "a combination of Thomas Edison and Jack Welch"). This wasn’t a U.S. play—it tapped into Asia’s emerging markets. Berkshire’s $230 million stake is now worth billions. It reflects Munger’s global vision: When the U.S. saturated, he sought high-growth, undervalued companies in China.
My take: A brilliant move, especially with today’s EV boom. For everyday investors, it’s a reminder: Don’t just buy U.S. stocks. Explore emerging markets—but pick wisely.

2. Daily Journal’s Portfolio: Blending U.S. and Chinese Stocks

What happened? As Chairman of Daily Journal Corporation (a small newspaper firm), Munger invested its cash reserves in stocks—including U.S. banks (e.g., Wells Fargo) alongside China’s Alibaba and BYD.
Why diversification? Daily Journal’s allocation is classic: partly in stable U.S. businesses, partly in Chinese tech/consumer stocks. With excess cash, Munger avoided overconcentration in the U.S. For example, their Alibaba investment in the 2010s delivered solid returns despite volatility.
My take: Munger operates more flexibly here than at massive Berkshire. His mantra—"go where opportunities are"—teaches everyday investors to add international exposure via ETFs or funds.

3. Berkshire’s Global Brands: Coca-Cola and Apple’s Worldwide Reach

What happened? Though U.S.-based, Munger and Buffett’s investments in Coca-Cola, Apple, etc., are inherently global. Coke sells in 200+ countries; Apple’s supply chain and markets span the world (including massive Asian manufacturing).
Why diversification? This isn’t direct foreign stock buying but indirect global diversification. Munger noted that investing in such companies exposes you to emerging markets, as most revenue comes overseas. It mitigates single-country risk.
My take: Munger avoids frequent trading but achieves "lazy" diversification this way. For beginners, buying multinational giants is an easy start—no need for overseas accounts.

Munger’s Core Philosophy and Advice

Munger isn’t a globe-trotting investor. He relies on reading and analysis (he devours books on global history/economics) for allocation. He insists diversification isn’t about random bets—it’s spreading high-quality, low-risk opportunities. For instance, he avoids tech bubbles but backs long-term trends like new energy.

If you want to emulate him, don’t blindly copy. Adapt to your situation: Start small, use index funds for U.S./European/Asian stocks. Risks exist (e.g., U.S.-China trade tensions rocked Alibaba), but Munger’s cases prove patient holding of value stocks pays off long-term. Feel free to ask follow-ups—I practice this with my own portfolio too!