And so, the stock went way up. Theres a lot of competition and were a very small company compared to our main competitor. Thanks u/Arceus122. Question: Last year, almost every ecommerce, internet, and internet adjacent stock was up 100 plus percent. And I think thats what shareholders do. Rose Blumpkin had quite an effect on the Berkshire culture. And like last year, you will in this note find a full transcript of the entire meeting. Charlie Munger: Well, I certainly hope that they succeed mightily in their software endeavor to automate all these courts for the modern world. And we cant go to many offices because theyre closed. I dont think Ive got any great insight about hydrogen. Charlie Munger: I think any rich nation ought to have a social safety net that expands a little with its wealth. And do you and Warren have any tricks or shortcuts to size people up quickly and accurately? Has the quality of the publication suffered as the employment levels have decreased? Value Investing will never go out of style. Written by Andy Jassy, CEO at Amazon. Question: Do you think its best to invest in the common stocks of businesses early or while they are more nascent and the industry is smaller, or wait until they are the clear winner of a more mature industry? Charlie Munger: Well, I have the same difficulty that Samuel Johnson once had when he got a similar question. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. The daily journal stock sells way above the price I would pay if I was buying new stock. Question: What have you done to live such a long life? WebThe U.S. economy is strong. Ellen Ireland will be inspector of elections. We do know one thing and that is that the courts of the whole world are going to be taken into the modern age. We love it anyway. [The questioner] would like to know what Charlies method of learning is. The one thing I will say is that a lot of the moats that looked impassable, people found a way to displace. % I dont know which is worse. I do think that Im way less afraid of inequality than most people who are bleeding about it. And if you believe Jeff Bezos is one of the best businessmen you have ever known, would you consider investing early in any of the new projects he will inevitably focus his attention on now that he will not have to be as concerned about the day to day responsibilities of Amazon? They really need the world to stay the way it is. And when the old CEO of the Daily Journal died, Gerry was managing the business affairs of the Munger Tolles law firm. I feel the same way about those choices. Because even as a boy, I knew a lot about who was sound who wasnt sound in Ohama. If we could make the world richer by just raising the minimum wage to $100,000 a second or something, of course we would do it but. I admire him that much. And I think that were crazy to allow it. Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? How can you not? How did Eugene achieve incredibly low loan losses over the long term while so many other bankers have failed miserably? And thats the way we handled Gerry. That word focuses Bezos and focuses the people that look to him for guidance. I cant help you. Scan this QR code to download the app now. <>>> However, is there a price too high that the companys future profits simply cannot justify? And I think the world would be better off without them. I own some apartment houses, so I like that investment, provided youve got a perfect management which is hard to get. Put me down as skeptical. endobj Capitalism is almost as brutal as that. Of course, thats a useful thing. Question: How important is the analysis of company culture in the investment process? Charlie Munger: I dont have any wonderful new thoughts. Tom Murphy used to say that his system of management was to delegate just short of total abdication. Theyre in a place thats gotten more valuable. Sources: FactSet, Dow Jones, Bonds: Bond quotes are updated in real-time. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. The letter is 1,617 words. I expect that and I welcome it. What happened is that BYD is very well positioned for the transfer of Chinese automobile production from gasoline-driven cars to electricity-driven cars. That happened because Gerry and I bought these little newspapers all over the state just as a precaution to make sure we could serve public notice advertising wherever it arose in the state. If its not good enough for Berkshire, shouldnt we have the same standards? Its very difficult to hire reporters in the San Francisco area with all the demands coming from the internet companies wanting to have an editorial product. And even if you have a natural gift, you cant be good at it unless you start playing at a very young age and get huge experience. Youd say that everybody does that in their education but I dont think everybody does. Our editorial system and our advertising system are all in the cloud. Washington State is actually considering a wealth tax at the state level. Im way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage. BYD stock did nothing for the first five years we held it. What were the lessons learned? I think its just to some extent you either have it or you dont. Creating 360 value. Nobody else has ever taken a big country out of poverty so fast and so on. I dont think that hydrocarbons are going. Take Gerry. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. There arent that many people like Lee Kuan Yew that have ever lived. Charlie Munger: Its quite importantpart of the success of a company like Costco. So we have one basic system configured in a number of different ways, including workers comp for a large state in the United States. Any tips on how to generate insight in these types of situations? But, I hardly think the editorial quality could go way up when employees were going down. Theres an old German proverb Ive always liked. Question: Youve spent much of your life contributing your wisdom to schools and hospitals. Lesson 1: Choose your words wisely. Charlie Munger: Im sure some are, but, by and large, thats not what Warren is known for. How do you decide to hold on to a stock or sell some? I think the result would have been worse if either party had been in control all by itself for the whole period. I tend to avoid the ones which Im not good at and Im not good at a lot of different problems. Rick was always humorous. But the Chinese have proved that you dont need free speech to have a wonderful economy. <> I think you should try and make your money in this world by selling other people things that are good for them. Will we have fewer gas stations or truck stops in the future? One of the interesting things about the Daily Journal is that we made all that money in the foreclosure boom. We take the situation as it is and try to solve it. Charlie Munger: I dont think you can make that a moral responsibility. Of course, that will still work. I find that by working at that, I can actually make some improvements even though Im old. If you have unrealistic expectations, youre going to be miserable all your life. At this rate, hell likely (hopefully) reach the longevity of Irving Kahn. Give me a new question. Question: The Federal Reserve appears to be supporting asset prices. And if you stop to think about it, that is also true at the Daily Journal. 2 0 obj Its one of the most ignorant professions in the world. Youve said recently that Sequoia is the greatest investment firm ever. Theyve got a better reputation for providing value than practically anybody, including Amazon. I dont think Gerry is surprised that the people doing the workMaryjo and Dannyare doing well. Charlie Munger: Ben Franklin was one of the wisest men who ever lived. But, a very wise man said on an earlier occasion: The trouble with banking is that we have more banks than we have bankers. Also, when you get reverses, if you just suck it in cope, that helps if you dont just fretfully stew yourself into a lot of misery. Charlie Munger: Well, it helps to be able to leave the IQ test early with the highest score. That happystat has more to do with their happiness and their outcomes in life. Absolute insanity. You used examples of Lee Kuan Yews good judgment in choosing someone with brains over certain physical attributes in your past interview. While there were only 410 shareholders of record of Daily Journal's common stock as of Dec. 15, according to its annual report, Munger attracts a sizable And, what about passive investing? If you were offered a fresh start today, what would you do differently in life and in investing? Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright Refinitiv. Copyright 2023 Surperformance. Heres a full transcript of the entire meeting. Have you considered amending this quote or lowering your standards? He cared terribly about not making bad loans or incurring dumb expenses. Of course, we accomplished quite a bit working together. Thats very, very important. WebCharlie Munger at the 2021 Daily Journal annual meeting spoke once again at great length. Today, the majority of contractual revenue that can be identified is from implementations and licenses. Charlie Munger: Well, of course, its very hard to fix the global warming problem when the poorer countries need to burn coal to stay alive and so on. Question: You are one of the oldest and greatest thinkers of our time. Its like evolution in biology. They just copied Adam Smith and left out the free speech and it worked fine for them. I came to law school having learned the method of learning and nothing has served me better in my long life than continuous learning. Of course, its hard to negotiate in such a field. WebCharlie Munger: 2022 Daily Journal Annual Meeting Transcript Written by Oliver Sung I usually sit down and transcribe the Daily Journal AGM with the musings and wisdom of I think any intelligent person can get to be pretty good as an investor and avoid certain obvious traps. Question: In your past speeches, you have mentioned the term functional equivalent of embezzlement to describe situations where bubbles can form because both parties involved in a bubble believe the asset to be worth more than it truly is. The directors are Gerry Salzman, Peter Kaufman, Mary Conlin, Gary Wilcoxwhos retiring nowand myself. What do you think we can do to help those who are currently falling behind as a result of this pandemic? How would you advise these institutions to manage their endowments over the coming decades? If you dont spend the money, you and your heirs get to spend it eventually. And it was probably wise that we acted exactly as we did. A lot of the good rules of life are like that. However, could you be more specific? I know Berkshire is a long-term owner and rarely sells securities of high-quality companies it owns in its portfolio simply because its overvalued. I expect less out of bankers than he does. Its really kind of an artificial substitute for gold, and since I never buy any gold, I never buy any Bitcoin. All except for the legal advertising system which we had to build because nobody else has the volume that we have. It just created the most unholy mess. Question: You often advocate for learning from other peoples big calamities and stupidities. But everybody cant be better than everybody else. 4. Charlie Munger: Real estate has always been a difficult field. Has there been anything that has surprised you, and what would be your best advice to someone starting a business now? By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. I dont know the answer. I dont think well change on that. Hed been a receiver for a bank. Always on point. Warren Buffett is set to release his annual shareholder letter Saturday morning along with the conglomerates quarterly earnings. But the accountants are duly elected. Sure, we all love the kind of civilization we have. Question: Which do you think is crazier? Question: Do you believe the market is going through a long-term value slump similar to 1999, or do you believe technology has caused a permanent change in how companies should be valued? All those factors come into play and if you go back a little further, we eliminated California Lawyer magazine and we had one time a newspaper in Seattle and one in Denver. Question: What books are you currently reading and what can you reccomend? I think civilization would do better without it. In 1860, GDP per capita in China was 600. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? Question: Can you share some parting thoughts with the viewers who are watching all around the world? Question: It seems like everyoneincluding actors, athletes, singers, and politiciansis getting into the business of promoting their own SPAC. Generally speaking, people assume that were a normal software company like Microsoft or something. How are they similar or different? Bookings in June 2022 totaled $217 million, up 8% (approximately 12% adjusted for the recent strengthening of the dollar against certain currencies) over I recommend that other people follow my example. Gerald Salzman: Well, we dont think about mistakes. And some bankers yield to the temptations. Gerald Salzman: Always upbeat, yes. Ive seen the whole bus system shift from gasoline or diesel to gas and so it obviously isnt impossible, but youd have to create a whole new system of supply for it. Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. What could investors do to cope better with periodical frenzy? It was totally required. All the good things. How do you recognize a potential downfall in a company you hold/invest in? Were going to bust our ass to try and do a good job. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? And my advice would be if you have a fixable disadvantage, remove it. Thats one you can easily arrange. Charlie Munger: Well thats an easy one. Question: BYD is in the Daily Journal stock portfolio with a very big paper gain. Question: In this years annual letter, you mentioned the share price increase was driven by speculative frenzy and forced index buying. On the other hand, the buses in Los Angeles work on natural gas. Charlie Munger: Well, thats a very good question. So human greed and the aggression of the brokerage community create these bubbles from time to time. That was a big error in judgment. tzJ/wa*''=`R9+eJ}hv&iA+sn\/t`5q2(5l.h% dD2)ls.sz M4Z6X_h+ak,+,D^'a%&2K~SO@z'9f)xC? 6ZERFyGh.Q{BoM$k2YNNV'Vq3yd;6. Theres hardly anything he touched he didnt improve. Its a funny way to make money. Imagine a bunch of Chinese communists turning a whole lot of Chinese and the billionaires in a big hurry. This is cheap compared to Tesla currently valued at over 1100 times P/E and 24 times sales. What are the main sources of ancillary revenue expected once the products have gone live and how meaningful will the products like eFile-it, ePay-it, cloud hosting services, and others become? Question: Previously, you have said; It takes character to sit with all that cash and do nothing. You know what her mottoes were? I would hate to compete with Sequoia in their field. That doesnt happen. Sources: FactSet, Dow Jones, Stock Movers: Gainers, decliners and most actives market activity tables are a combination of NYSE, Nasdaq, NYSE American and NYSE Arca listings. That approach will never go out of style. Ive been engaged in recent years in trying to create a better type of student dormitory. << /Filter /FlateDecode /Length 2607 >> It says that man is too soon old and too late smart. You know, its just, its incredible whats happened in terms of the destruction. And it has saved Los Angeles a fortune because gas is so much cheaper than gasoline. When the pandemic is over, I dont think were going back to just the way things were. Florida would have a really serious problem. Charlie Munger: Well, its most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. The Daily Journal shareholders will have to take whatever outcome comes from caring more about our customers than is at all common. I think theyre probably right, by the way. What I think is interesting about chess is, to some extent, you cant learn it unless you have a certain natural gift. The first order of business is to reelect the four directors and the votes are as follows: Charles Munger, 679,481, Gerald Salzman, 660,287, Peter Kaufman, 593,336, Mary Conlon, 651,493. Im afraid thats the way we all have to leave our swords. Munger Question: In 1999, the year the Daily Journal bought Sustain Technologies, the traditional business employed 355 full-time employees and 61 part-time employees. It was a background that helped everybody. As a matter of fact, what happens is to make a nation rich, you need a free market system. Classified advertising is down significantly. I think all good investing is value investing. Question: Last February, you spoke about the wretched excess in the financial system. And, we hope to do well in it. Beyond restaurants, consumers showed a growing interest in many of the newer categories on our Marketplace in 2021. I prefer the United States. Thats the nature of capitalism. And thats very interesting. Question: You famously run investments through your mental checklist. Youve even said business schools that dont adopt this method are doing their students a disservice. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. 5. Charlie Munger: Well, it certainly does and thats the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would betting on horses. Of course, it really helped to know everybody in town. You have said that the single best way is to deserve a good spouse because a good spouse is by definition not nuts. And he was a great kidder. And since we are on the subject of selling potentially overvalued security, could you provide your systems for selling securities? Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. Question: Do you believe the valuations for electric car manufacturers are in bubble territory? Charlie Munger: I cant think of a We paid high prices for some little companies in the course of trying to enter the court software business. So far the evidence would be that maybe the monetary modern monetary theory is right. Of course, his son, who is a bright man, is now Prime Minister of Singapore. A lot of people assume that since England led the Industrial Revolution and had free speech early that free speech is required to have a booming economy as prescribed by Adam Smith. Daily Journal Corp : Submission of Matters to a Vote of Security Holders (form 8-K) AQ. There are factories in China that are just absolutely full of robots and are working beautifully. I call it deworsificationwhich I copied from somebody. Of course, its going to be difficult. Also, fortunately before the pandemic, we got out of the conference-type events and we were not subjected to the problems of no conferences nobody to attend. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. I dont think Im likely to have any new thoughts that are going to work miracles either. He was a one party system but he could always be removed by the electorate. We made the rich richer, not as a deliberate choice, but because it was an accidental byproduct of trying to save the whole civilization. He was very courageous and generous in helping everybody around him all his life. We miss Rick terribly. Dear shareholders: Over the past 25 years at Amazon, Ive had the By the way, thats not the normal outcome in America. Share Charlie Munger, a shareholder and board member for The Daily Journal, is set to speak at the newspapers virtual annual meeting Wednesday. He loved to kid people. If a civilization can progress only when it invents the method of invention, you can only progress when you learn the method of learning. Question: It seems likely that the current Fed policy of keeping interest rates near zero will only exacerbate the income disparity in this country by benefiting those who own the financial assets. and our Question: I was wondering if you could share some thoughts on Haven, particularly why it was ultimately closed. Bitcoin reminds me of what Oscar Wilde said about fox hunting. I think theyd run rings around me. GE released its 2021 Annual Report today. No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. I think that inequality is absolutely an inevitable consequence of having the policies that make a nation grow richer and richer and elevate the poor. Charlie Munger: Well, of course, if they bring in a brand new technology you dont understand at all, youre at something of a disadvantage. Charlie Munger: Well, heres what I meant. And his conclusion is that mankind should just step up to it and do it. BYD sells at nearly 200 P/E. And I think both of us have done the same thing; we just suck it in and cope. How do you think about the hydrogen opportunity for transportation and how does it compare to the electric opportunity, specifically thinking about trucks versus cars. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. One of my smartest friends in venture capital is constantly getting huge clumps of stocks at nosebleed prices. Have you met Lee Kuan Yew in person? Thats the good news. Charlie Munger: Well, I think all stocks can fluctuate. He was not a dictator. Question: We have a couple of questions about J.P. Rick Guerin. We bought all these buildings cheaply. And, of course, when things get extreme you have things like that short squeeze. On the other hand, it could be handled. Now 16 years have passed. Just think of the things that were once prosperous that are now in failure or gone. I think management should tell it like it is at all times and not be a big promoter of its own stock. If you try and reduce the poverty too much, its counterproductive. Just time after time, he would choose the right system. Larry Summers has recently been quoted as being worried that were having too much stimulus. Everybodys got a different situation. Question: What is the wisdom behind holding bank stocks compared to other stocks. Charlie Munger: Well, Lee Kuan Yew had the best record as a nation builder. At this rate, Youve reached the limit of my circle of competence. Other. It doesnt happen anymore. At the age of 97, Charlie Munger wasnot surprisinglysharp as a tack. Delayed Nasdaq And in biology, what happens is the individuals all die, and eventually, so do all the species. What do you think of all of the SPACs and the promoters pushing them? Charlie Munger: Well, I do have a tip. The word 'customer' occurs 25 times. Could you please elaborate on the subject and could you consider giving a talk on this particular subject? In 2010, that was down to 165 full-time employees and 15 part-time employees. Charlie Munger: Yes, I think it must end badly but I dont know when. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. He took over a malarial swamp with no army, no nothing. Theron Mohamed Jan 22, 2021, 11:41 AM Charlie Munger. Could you share the secret to living a long, healthy, and happy life? A lot of the people who are doing this remote worka lot are going to work three days a week in the office and two days a week at home. He was fun to be with because he was always jumping out of airplanes and parachutes and running marathons and so on, doing all kinds of things I would never consider doing. Charlie Munger: I dont know anything about Haven. And, of course, I think its vastly stupid for any state to be user-friendly to the rich people. Question: Do you believe any psychological personality tests, such as the Myers-Briggs Type Indicator, to be of any good in choosing a compatible partner, given that choosing a spouse is probably the most important decision one can make in life. WebThe rapid collapse of BYD's H-share price caused by (1) the news that Citibank was holding Berkshire's shares, and (2) that Berkshire, owner of 20.5% of the H-shares is now selling He had excellent judgment. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. Its difficult to break into the legal advertising system which supports so many newspapers, not only in California but elsewhere. In display advertising, for example, we now utilize a very friendly company that worked with us for 25 years and now they are helping us sell advertising. Who gets rich faster by class is going to vary over time and I dont think anybody should be too concerned by it. We got a dividend of two and a half million shortly thereafter. What can we do to increase knowledge, understanding, and appreciation of the Chinese civilization? Do you agree with the premise and if so how would you address inequality? WebDaily Journal Corp. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. Key Points. I think I would have lived a long time if I had lived a different life. Gerald Salzman: There are a number of factors that come into play here. Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. It was absolutely incredible. Thats entirely due to the practical talent of Lee Kuan Yew. I do think that we dont know what these artificially low interest rates are going to do or how the economy is going to work in the future as governments print all this extra money.
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