What are some practical examples of Charlie Munger's successes and failures in overseas markets?

Charlie Munger's Overseas Investment Case Studies

Hey everyone, I'm an investment enthusiast who loves studying the investment philosophies of Charlie Munger and Warren Buffett. That old-timer Munger (he’s almost 100 now) is a master of value investing. He and Buffett run Berkshire Hathaway together. While they mostly focus on the U.S. market, Munger has a sharp eye for overseas opportunities—especially companies with a "moat" (competitive advantages). Below, I’ll briefly discuss some of his overseas investments, both successes and failures. I’ll keep it simple to help you understand the key takeaways. Munger’s style boils down to buying great companies and holding them long-term, not chasing short-term hype.

Success Story: BYD (Chinese EV Maker)

Munger’s most famous overseas win is BYD. Back in 2008, BYD was just a small battery company. Its founder, Wang Chuanfu, was introduced to Munger through a friend. Munger saw its technological edge, ambition, and potential in EVs and renewable energy. He urged Buffett to invest $230 million for a 10% stake.

The result? BYD is now a global EV giant, with its market value multiplying many times over. Berkshire still holds the shares, having made a fortune. This investment proved Munger’s foresight: he looks beyond financials to assess leadership and long-term potential. Simply put, Munger bet correctly on China’s EV wave. In my view, it’s a classic value-investing case—buying a great company early and letting it grow.

Semi-Success: POSCO (Korean Steel Giant)

Through his investment firm, Daily Journal, Munger invested in POSCO, a major Korean steel producer. Munger loves resource-advantaged companies, and POSCO was globally competitive. He bought in the early 2010s when its stock was cheap.

How did it perform? Not a home run, but solid long-term. POSCO’s stock fluctuated, but its steady dividends earned Munger solid returns. More importantly, it reflects his "diversification" mindset: don’t put all your eggs in the U.S. basket. The risk was low because he bought at a cheap valuation—a high margin of safety.

Failure: Tesco (UK Supermarket Chain)

Munger and Buffett also stumbled overseas, like with UK’s Tesco. Around 2012, Berkshire bought over $2 billion worth of Tesco shares. Back then, Tesco was Britain’s largest supermarket—a seemingly stable consumer stock with strong branding and store networks.

But trouble hit: Tesco later faced an accounting scandal (financial fraud), and fierce competition from Amazon and discount retailers crushed its stock. Berkshire sold in 2014, losing $400+ million. Munger admitted they’d misjudged management issues and market shifts. The lesson? Even big companies can see their "moats" erode. Munger said this made him more cautious about overseas cultural and regulatory gaps.

Another Failure: Irish Banks (During the Financial Crisis)

During the 2008 crisis, Berkshire invested in Irish banks like Irish Nationwide. Munger thought they were undervalued and would rebound.

Result? Ireland’s property bubble burst, banks drowned in bad debt, and nearly collapsed. Berkshire lost heavily. Munger later reflected that they’d underestimated local economic risks. Bottom line: overseas investing requires macro-awareness, not just chasing "cheap" stocks.

My Takeaway

Munger didn’t invest heavily overseas (he prefers U.S. companies), but these cases are insightful. Success hinges on finding the right people and trends (like BYD); failures often stem from overlooked risks (e.g., Tesco’s management). Munger always says investing is about "waiting for the right pitch"—don’t rush into overseas markets without homework. For beginners, I recommend starting with his book Poor Charlie’s Almanack; it captures his core philosophy. Feel free to ask questions—I’m no expert, but I’ve learned a lot over the years.