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. Value Investing will never go out of style. What happened is that BYD is very well positioned for the transfer of Chinese automobile production from gasoline-driven cars to electricity-driven cars. Copyright 2023 Surperformance. I do think that a properly run bank is a great contributor to civilization and that the central banks of the world like controlling their own banking system and their own money supplies. Charlie Munger: Well, these things do happen in a market economy. But, no, I dont think Treasury securities are a big problem. Question: Given all of your donations to physics, what is your favorite way of applying physics to societys problems and also to investing? Just time after time he would do something like that. Of course, we accomplished quite a bit working together. That is true and makes sense. And, he was very good company and a splendid gentleman. He had excellent judgment. It just created the most unholy mess. On the other hand, we have a fair amount of time to do it. Charlie Munger Speaks at the Daily Journals Annual Shareholders Meeting Interview of Charlie Munger by CNBCs Becky Quick, who selected and read a pair of questions from me. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? Can U.S. Treasury bonds be such a case today? Charlie Munger: Yes, I think that is rising as we sit here. We do, as Charlie indicates, have a lot of travel. WebAnnual reports, proxies and shareholder letters. Would you share a few stories about him and your fondest memory? The case, filed in February, challenges a plan to convert APEs, AMCs preferred shares, into common stock. Charlie Munger: I think everybody is willing to hold stocks at higher price-earnings multiples when interest rates are as low as they are now. shareholder letters FOURTH QUARTER 2021 FINANCIAL RESULTS AND SHAREHOLDER LETTER We generated $97 million of free cash flow in the quarter and $477 million for the year, inclusive of a $191 million increase in inventory of which approximately $60 million is due to increased transit times and the balance targeted to alleviate our unshipped If you were offered a fresh start today, what would you do differently in life and in investing? You have said that the single best way is to deserve a good spouse because a good spouse is by definition not nuts. Is there anything that you wish you had added to your checklist sooner? DAILY JOURNAL CORPORATION Charlie Munger: I dont think I have a lot of wonderful advice about starting a business but what youve learned in the pandemic is that we can do with a lot less travel and a lot more Zooming. Can you speak to the causes, the trend, and make some predictions? So I dont worry that the country is being ruined by a few people over getting ahead a little faster than the rest of us. Questions: Why are some people incapable of learning new ideas and behaviors? And I dont think that we or the Daily Journal is getting ahead because weve got some wonderful macroeconomic insight. If the seas were to rise 60 feet, which could happen in another 100 years or so, wed have to build enormous barriers to sea entry. But I dont think everybody can be a great investor or a great chess player. The wealth management industry has a crisis on its hands. And what are the implications, since Treasury assets underpin the value of every other asset? Has the quality gone down? WebMunger's terse letter to Daily Journal shareholders. 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? A 2003 examination of what makes Berkshire Hathaway's subordinate CEOs successful. We would all say that. Stocks: Real-time U.S. stock quotes reflect trades reported through Nasdaq only; comprehensive quotes and volume reflect trading in all markets and are delayed at least 15 minutes. A lot of things are going to change. For shareholders and others who are interested, a book that compiles the full unedited versions of each of Warren Buffetts letters to shareholders between 1965 and 2014 is available for sale at this link. They really need the world to stay the way it is. Charlie Munger: Well, I hope we dont have fewer truck stocks because Berkshire Hathaway is deeply involved in truck stops. 4 0 obj s=QFO?TT ze(0$ $$JI6[t_j%Suf.`2QW It was totally required. But, I dont think Ive got a lot to contribute. They just copied Adam Smith and left out the free speech and it worked fine for them. Charlie Munger: Its partly culture but a lot of it is just born in and its a quirk. We will now proceed to the question period. That happystat has more to do with their happiness and their outcomes in life. Charlie Munger: Thats too hard in general a question for me. So, the shareholders have been lucky to have somebody like Gerry here who could learn what he didnt know and fix it. I think theyd run rings around me. I cant help you. KWOT].AfOJQ=3U'(Jn6c3fBvvv[#"vsjQog:}CcS?t*Zh|gB;k1xER6fxE5fI6UVFs7v=ViHmg"qTELgJD(2*Q. Charlie Munger: Well, Lee Kuan Yew had the best record as a nation builder. I expect that and I welcome it. We have our crotchets and I just dont know enough about it to want to go into that activity. Charlie Munger: Well, I dont participate at all. Question: In this years annual letter, you mentioned the share price increase was driven by speculative frenzy and forced index buying. Question: It is estimated that the Gates Foundation has saved well over 100 million lives. It plans to build about 50,000 EVs in North America in the first half of And I think that were crazy to allow it. I think you should try and make your money in this world by selling other people things that are good for them. Charlie Munger: I dont know anything about Haven. And its really stupid to have a culture that encourages as much gambling in stocks by people who have the mindset of race track betters. Its one of the most ignorant professions in the world. He lived in a particular town. 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? A lot of the old moats are going away, and, of course, people are creating new moats all the time. The votes in favor of that are 995,356 against 120. Question: How do you control your investments in a world where reasonable companies with a good image like General Electric sink rapidly into the bottomland of the stock market. 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. Thats the reason he rose so fast in life. He was just so damn smart. Charlie Munger: Ben Franklin was one of the wisest men who ever lived. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? He cared terribly about not making bad loans or incurring dumb expenses. But I dont think thats going to end up with a mistake. Question: What books are you currently reading and what can you reccomend? Gerry has done magnificently well. And, I was not surprised when it blew up. In other words, its your money. And I applaud the result. New species are created and old species are dying. Of course, if he had a chance to do it over again, he would avoid those mistakes. And, of course, its all worked. Letter GM raises its 2023 earnings outlook | Automotive News Fundamental company data and analyst estimates provided by FactSet. You are going to be flabbergasted. Thats entirely due to the practical talent of Lee Kuan Yew. He was a very smart man. DJCO | Daily Journal Corp. Financial Statements - WSJ Charlie Munger: I have seen an episode or two of the Queens Gambit. And its rather interesting. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. If you try and reduce the poverty too much, its counterproductive. When you pay for order flow, youre probably charging your customers more and pretending to be free. 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. Everybodys got a different situation. Always intelligent. 2021 Letter to Shareholders | Accenture Apartments have come through better. Charlie Munger: Well no, I dont think we have a bubble in Treasury securities. Its been amazing that one little company starting up not that many decades ago could become as big as Costco did as fast as Costco did. That word focuses Bezos and focuses the people that look to him for guidance. Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. Florida would have a really serious problem. Question: What have you done to live such a long life? Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? and our Question: Youve spent much of your life contributing your wisdom to schools and hospitals. Question: Should there be a tax on buying stock now that Robinhood trades are free? 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. What do you look for in a leader? He was very courageous and generous in helping everybody around him all his life. Youve said recently that Sequoia is the greatest investment firm ever. Gerry, can you ever remember Rick down? Charlie Munger: 2022 Daily Journal Annual Meeting Transcript, Charlie Munger: 2020 Daily Journal Annual Meeting Transcript. I dont think it was a mistake to buy the Daily Journal when we did, paying the price we did. Scan this QR code to download the app now. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. Berkshires Performance vs. the S&P 500 The daily journal stock sells way above the price I would pay if I was buying new stock. Capitalism is almost as brutal as that. I have a very simple idea on the subject. I prefer the United States. The Daily Journal shareholders will have to take whatever outcome comes from caring more about our customers than is at all common. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. I dont think its like the newspaper business. Question: Is the oil and gas industry the new newspapers? I call it deworsificationwhich I copied from somebody. Charlie Munger: I dont know how permanent its going to be but it certainly caused a change. I do think the present CEO is an extraordinarily able man and the directors made a very wise choice when they put him in charge. But its hard for anybody. And, I think Jack Ma was very arrogant to be telling the Chinese government how dumb they were, how stupid their policies were, and so forth. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Buffetts donations to the foundation have obviously helped to save many millions. And some types of real estate in recent years has been particularly difficult. So he married her. 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. And if you stop to think about it, that is also true at the Daily Journal. But they dont teach that in the psychology department because the academic system rewards little experiments that develop more insight into psychological tendencies instead of synthesizing whats already been discovered with the rest of knowledge. 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. Questions: Now that we are cash flow positiveassuming the software business is investing organically as much as it canwhat is the philosophical thinking with respect to capital allocation at the Daily Journal. Charlie Munger: Ladies and gentlemen, wherever you are, via Yahoo finances website. No, I dont have any secrets. Theres a lot of competition and were a very small company compared to our main competitor. I think when difficulty comes, I expect to have my share. Youd say that everybody does that in their education but I dont think everybody does. I do think that Im way less afraid of inequality than most people who are bleeding about it. As a matter of fact, it will be here for a long, long time if we stop using many hydrocarbons in transportation. I didnt get to where I am by going after mediocre opportunities. Highlights From JPMorgan CEO Jamie Dimon's Annual Letter Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. Everybody has shortcuts to screen out certain hazards. He gasped and said, but hes never had anything to do with newspapers or anything else. I think its just to some extent you either have it or you dont. And another shareholder asked: Dear Mr. Munger, please share your thoughts on the recent /r/WallStreetBets GameStop short squeeze. You can argue that I got close to Sequoia when with Li Lu we bought into BYD. Ive been pretty quiet. People really trust Costco will be delivering enormous value. International stock quotes are delayed as per exchange requirements. Look around all this real estate. Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Total If I had stayed in Omaha, where I was raised, and gotten into the banking business, I would have been a hell of a good banker. Buffett recommended it. In other words, when we shout our knowledge out, were really pounding it out. Charlie Munger: I think Ive learned to avoid zoning work. I think that would be insanity. Of course, that will still work. 2021 But we cant. Charlie Munger: Well, I dont think I know exactly what the future of banking is and I dont think I know how the payment system will evolve. Question: Do you think value investing is still relevant in a GDP-decreasing world? I dont think I can teach you how to retroactively get a new accident yourself. Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. WebThe Annual Meeting of Shareholders of Daily Journal Corporation (the Company) will be held virtually on February 16, 2022 at 10:00 a.m. Pacific Time. Daily Journal Corp : Submission of Matters to a Vote of Security Holders (form 8-K) AQ. Could you share the secret to living a long, healthy, and happy life?