But show me a psychology department that knows how to do that. Rose Blumpkin had quite an effect on the Berkshire culture. Charlie Munger: Well thats an easy one. Charlie Munger: I think I had the right temperament. Of course, that made him very leery of dumb loans. Any tips on how to generate insight in these types of situations? So human greed and the aggression of the brokerage community create these bubbles from time to time. If you suffered losses exceeding $100,000 investing in SVB stock or options (i) between January 22, 2021, and March 10, 2023, inclusive (the "Class Period"); and/or (ii) Charlie Munger: I dont think so. Furthermore, hed gone through the Great Depression. And what did the Chinese communists do with respect to death taxes? Written by Andy Jassy, CEO at Amazon. Everybody is. I think any intelligent person can get to be pretty good as an investor and avoid certain obvious traps. Heres a full transcript of the entire meeting. Gerry, dont you think were doing pretty well? You can hardly think of a decision that matters more to human felicity than who you marry. A rich civilization can afford to do it if we absolutely have to. How would you advise these institutions to manage their endowments over the coming decades? They wouldnt be a lot happier if they were richer or a lot less happy if theyd been poor. Question: What is the biggest competitive threat to U.S. banks like Bank of America and US Bankboth equity holdings of the Daily Journal Corporationover the long term? Question: What are Mr. Mungers thoughts on the recent GameStop short squeeze by social media and the resulting implications on short selling in the future? Watch Charlie Munger speak at the Daily Journal annual meeting WebThe Annual Meeting of Shareholders of Daily Journal Corporation (the Company) will be held virtually on February 16, 2022 at 10:00 a.m. Pacific Time. 2021 Letter to Shareholders - About Amazon Every value investor tries to get more value than he pays for. Were going to bust our ass to try and do a good job. And, pretty soon, he turned that into this gloriously prosperous place. Lane Hickenbottom/Reuters Warren Buffett's longtime business partner called out a Think of whats died in my lifetime. I regard this as insanity. \h_^cBa\"BfuLj@`}Ze jZ*l!-;LUe=v3+adjh4Sz8h*`iQ5>dZ;c8sgu[9|7$t}HkN5xv.,GqwYp0Y,53Urn i*5"x~z0GYkgPU0gbivl:"[Z@"S5mdY = 14M.6X!8&[R-p;a)}P5Y^wE7>L>39ju oH*crZRYTf 0@N',.>BP%M72HY=eY\ |Lt[kC&15YsATr*z=%4;mSH4%ZJ[WI]da f1u#{z)`|Es5dH^,X"I3V4&F@N]6# 7V}cDCY$P(Xa:FVPfl\V!ZA~jtSBtrleZuV"Nr7cA_ u!LC36Mh]82(M+ RR)mnk d=#:v4P^^xEbt:x85!K-yQK Nu=?vL]'.vq|1b* pS67-K^sqj Charlie Munger: Well, I consider that very unlikely. Theres no question about the fact that Wells Fargo has disappointed long-term investors like Berkshire because the old managementwhich is now removedwere not consciously malevolent or thieving but they had terrible judgment in having a culture of cross-selling where the incentives on the poorly paid employees were too great to sell stuff that customers didnt really need. And the next time around the poor will get richer faster than the rich. Charlie Munger: Well, I cant top Lee Kuan Yews example. 4 0 obj What can you learn from the Barry Duttons bookstore building deal in Brentwood and how would you apply that new knowledge or experience in the future? 2023 Junto Investments, all rights reserved. Charlie Munger: Well, its not easy to handle accumulated money in the current environment when these stocks are so high and partials of real estate of certain kinds are also very inflated. Privacy Policy. And I think the directors of GE deserve a lot of credit for making Larry Culp the CEO. Thanks u/Arceus122. The meeting was held on February 24, 2021. I dont define that as value investing. And we probably have more of those shortcuts than others. Question: What do you hope the future of the Daily Journal Corporation looks like in a decade? All rights reserved. What happens is that every human being tends to believe way more than he should in what hes worked hard to find out or where hes announced publicly that he already believes. No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. 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 his conclusion is that mankind should just step up to it and do it. But, I find that the old ways of doing things still work. And some types of real estate in recent years has been particularly difficult. And they dont do that very wellIm talking about the business schools. I was good at having low expectations and that helped me. What would be a mistake at the Daily Journal which we can all learn from? 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. Im satisfied with the way things have worked out and Im not gnashing my teeth when other people are doing better. Shareholder Charlie Munger: Well, he was one of my closest friends for many decades. So, you have to be a little closer to the employees needs, desires, babysitting, and all those activities that were kind of taken for granted in the past. Question: The highly configurable JTI product may help e-suites integrate deeply into new jurisdictions as agencies and citizens become familiar with the courthouse software. Gerrys lived a long time too and I think we both have been lucky. And it has saved Los Angeles a fortune because gas is so much cheaper than gasoline. One of my smartest friends in venture capital is constantly getting huge clumps of stocks at nosebleed prices. Creating 360 value. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Charlie Munger: Early 70s. Question: My question concerns China. What do you think of all of the SPACs and the promoters pushing them? When you look at whats happened in California [in terms of] the price of real estate and rentals, weve reduced the number of offices we have both for Journal Technology and for the Daily Journal. If you go to a little country like Estonia, the whole damn country is on the internet and its a very good idea. And, of course, its regrettable. Sources: FactSet, Dow Jones, Bonds: Bond quotes are updated in real-time. If youre willing to count small nations in the group, he had probably the best record that ever existed in the history of the world. And thats not a sure thing either. The total number of shares, represented by proxies at this meeting, are 995,682, which are more than enough to constitute a quorum making the meeting duly held. That is true and makes sense. He doesnt mind at all not getting credit for his charitable donations. Question: How important is the analysis of company culture in the investment process? I hope the newspaper survives too. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. April 15, 2021 Dear Partner: The Greenlight Capital funds (the Partnerships) returned -0.1%1 in the first quarter of 2021 compared to 6.2% for the S&P 500 index. Charlie Munger: I dont have any wonderful new thoughts. And if you stop to think about it, that is also true at the Daily Journal. 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 $60 million is due to increased transit times and the balance targeted to alleviate our unshipped That was a big error in judgment. Could you share the secret to living a long, healthy, and happy life? Everybodys got a different situation. Accounting is also in the cloud. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. We are in fact being a more difficult type of software business than Microsoft. I expect that and I welcome it. As for some of our technology, like eFiling for example, the courts are closed. But I wont be following him. Any copying, republication or redistribution of Lipper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Lipper. You saw the ebb and flow of industry and the creative destruction of the economic changes and so on. And that institution has two assets in its endowment account. Question: Why, almost two years ago, did you believe that Costco was the only U.S. stock worth buying? Im just learning as I go along. Give me a new question. Charlie Munger: I dont think I use much physics in solving my investment problems but it occasionally helps me. And, of course, its all worked. Welcome! I think management should tell it like it is at all times and not be a big promoter of its own stock. Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. He was not a dictator. :qpt1cMt8\2&avSY9-;S6 |jw&.\ "P/cdx>5[_:Vt _;hgf1!||tx8Oz}Y=eHcu65gl-T >Tkbb,OxW]Y?W8p`? LimT;IZ}La`9tFG;hB*4bI*Kt,U7e~kEVzVTmT$k*(4>uBXrW0L-MYz g\uz:~F ],ZgKUVyaq5muCWc*uNSS1e/~;$wqNw;jJkyVG*"ns*~e15{f +%>\o-^^U]UpJW',/ I think that that will probably continue. Facebook; Instagram; LinkedIn; Twitter; Youtube; Shop Amazon.com Charlie Munger: Well, I do have a tip. Inside Daily Journal Corp's 10-K Annual Report: Financial - Expense Highlight. Source: Kantar Media. Charlie Munger spreads wisdom at the annual meeting for the Daily Journal. I dont think that hydrocarbons are going. Charlie Munger: Yes, I think that is rising as we sit here. So, its a very interesting competitive field. Share Charlie Munger, a shareholder and board member for The Daily Journal, is set to speak at the newspapers virtual annual meeting Wednesday. Apartments have come through better. Heres that transcript, starting at 37:37, from the full interview here: https://ca.finance.yahoo.com/ video/charlie-munger-speaks- daily-journals-185409394.html Im not going to change. 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. We all live with that problem. Charlie Munger: Well, we dont really know where its all going. Youd say that everybody does that in their education but I dont think everybody does. He was a very smart man. Thats an interesting example of self-learning. Of course, its hard to negotiate in such a field. Is it digital wallets like PayPal, Square, or Apple Pay? The wealth management industry has a crisis on its hands. So, I dont mind a little inequality and what I notice is that the rich families generally lose their power and wealthand pretty fast. I think the result would have been worse if either party had been in control all by itself for the whole period. We miss Rick terribly. He was very courageous and generous in helping everybody around him all his life. I think most people are born with a happystat. What I think is interesting about chess is, to some extent, you cant learn it unless you have a certain natural gift. The case, filed in February, challenges a plan to convert APEs, AMCs preferred shares, into common stock. Question: What have you done to live such a long life? DATAROMA Superinvestors Portfolio Holdings I think that the methods that Ive used including the checklists are the correct methods and Im grateful that I found them as early as I did and that the methods have worked as well as they have. Will we have fewer gas stations or truck stops in the future? By the way, thats not the normal outcome in America. DAILY JOURNAL CORPORATION : Company profile, business summary, shareholders, managers, financial ratings, industry, sector and market information | But, of course, I think there will be more automation in transportation of all kinds in the future. And so, we cant promise were going to succeed. Shareholder Letter I do think that Im way less afraid of inequality than most people who are bleeding about it. Question: You are one of the oldest and greatest thinkers of our time. But, of course, if we got a chance to do it again, we would do it better. When I saw that psychology was necessary and I didnt have it, I didnt just learn the little tendencies well enough to get As in psychology. Charlie Munger: I think any rich nation ought to have a social safety net that expands a little with its wealth. We take the situation as it is and try to solve it. Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? So its a very theoretical discussion. For example, Coca-Cola in the past. So, I think you can count on the fact that what were doing is going to be a big growing field. Could you please elaborate on the subject and could you consider giving a talk on this particular subject? You can hardly think of anything more important in life than being reliable for the people who trust you. Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Total [The questioner] would like to know what Charlies method of learning is. But, no, I dont think Treasury securities are a big problem. Daily Journal Corporation - Shareholder/Analyst Call WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. xZF}W3y%Y{mZ#fHSMR-Er``F(VuSE()|"MT/+AIE"WUVm &IN/ qD2OM~-e.kvwySQ;&m.rOqK[z=7r|>*a[9ATrv92==I>6n2- ` #? What can we do to increase knowledge, understanding, and appreciation of the Chinese civilization? The number of people who ever got a chance to do it again is zero. You have to be concerned about employees lives. And why did you feel that Amazon had more to fear from Costco than Costco had to fear from Amazon? Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. Nothing is particularly obvious for everybody to do the same thing. Question: Mr. Munger recently raised the alarm about the level of money printing taking place. h`DU6,]Z a]T&LPuwIXX>4cGy82 So, Im kind of pleased that Im still functioning at all. Charlie Munger: I think Warren and I are better at buying mature industries than we are at backing startups like Sequoia. How can you not? Is there anything that you wish you had added to your checklist sooner? We expect many of our employees to always be at client court offices because we work with them very closely to make sure they get what they need. Well, I dont think the quality of publishing public notice advertising has gone down. Now 16 years have passed. If a civilization can progress only when it invents the method of invention, you can only progress when you learn the method of learning. We focused and de-risked the company through strategic portfolio actions, significantly accelerated our debt reduction, Bookings in June 2022 totaled $217 million, up 8% (approximately 12% adjusted for the recent strengthening of the dollar against certain currencies) over Ive been pretty quiet. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? Commission-free trading is not free. Charlie Munger: Thats too hard in general a question for me. 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. Gerald Salzman: Charlie refers to the courts, many times. Opportunities to invest in underpriced stocks (banks in 2009, in particular, I believe) Nothing is very Its just that the investment banking profession will sell shit as long as shit can be sold. When people gave me a good idea and I could see it was a good idea, I quickly mastered it and started using it for the rest of my life. There are factories in China that are just absolutely full of robots and are working beautifully. And some bankers yield to the temptations. What happened is that BYD is very well positioned for the transfer of Chinese automobile production from gasoline-driven cars to electricity-driven cars. Cryptocurrencies: Cryptocurrency quotes are updated in real-time. And he was just so good. Some people think that value investing is you chase companies that have a lot of cash and theyre in a lousy business or something. I dont think Ive got any great insight about hydrogen. Question: Do you believe global warming is an existential threat to humankind? He cared terribly about not making bad loans or incurring dumb expenses. It was an accident. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 18 0 R 19 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> I think all of this activity is regrettable. 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? Where does it appear most egregious? The meeting will come to order. Part of the reason for that was cultural. It showsed how wise we were to put him there in the first place. And I just think it was academically inconvenient for them. Data may be intentionally delayed pursuant to supplier requirements. Of course, his son, who is a bright man, is now Prime Minister of Singapore. Any tips for someone who wants to work on and improve their ability to hold two opposing views at the same time? Lesson 1: Choose your words wisely. Charlie Munger: I dont think you can make that a moral responsibility. DAILY JOURNAL CORPORATION : Shareholders Board And he made a very favorable impression. Below is the Report's Letter to Shareholders from GE Chairman and CEO Larry Culp: Dear Fellow Shareholder, 2021 was a year of historic change for GE. Ive been engaged in recent years in trying to create a better type of student dormitory. Its like evolution in biology. The letter is 1,617 words. No, I dont think I have anything to contribute. Because we have the proxies those directors are now reelected. He said, figure out what works and do it. Charlie Munger: Ladies and gentlemen, wherever you are, via Yahoo finances website. I think theyre a bad investment when interest rates are this low. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. Capitalism is almost as brutal as that. Because if you do that, Im a moral leper. Berkshires Performance vs. the S&P 500 Munger's terse letter to Daily Journal shareholders. Gerald Salzman: None. I was very lucky. Julia La Roche - Amazon Web Services Question: Youve said several times that the best way to learn about business is to study the multi-decade financial results of great companies. And so I dont think its necessarily crazy that good companies sell at way higher multiples than they used to. All we can promise is that were gonna try and so far as I can tell, were doing pretty well. 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. Copyright 2023 Surperformance. I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. Charlie Munger: I think Im alive because of a lucky genetic accident. International stock quotes are delayed as per exchange requirements. I came to law school having learned the method of learning and nothing has served me better in my long life than continuous learning. We are very excited to look forward to enabling the courts to function as we know that they want to and will in the future. Charlie Munger: 2022 Daily Journal Annual Meeting Transcript Theyd take you through the building of the canals and the building of the railroads and so on and so on. Question: What books are you currently reading and what can you reccomend? Chinas economic record among the big nations is the best that ever existed in the history of the world. What little newspaper company has come through the crisis of this destroying of all the newspapers better than the little Daily Journal? Its entirely possible that our system is right for us and their system is right for them. No, I dont have any secrets. Question: Has your opinion on cryptocurrencies remained the same? How are they similar or different? I have a bust of Lee Kuan Yew in my house. He was old as I am. April 14, 2022. Charlie Munger Flags 'Speculative Frenzy' in Stocks, Lack of Bargains Latest statistics and disclosures from Daily Journal Corp's latest quarterly 13F-HR filing: Top 5 stock holdings are BAC , WFC , BABA , USB , and represent Thats a really good rule. Generally speaking, people assume that were a normal software company like Microsoft or something. Charlie Munger downplays risk of Taiwan invasion, says And I think that were crazy to allow it. Thank you for all you do to educate us. I think when difficulty comes, I expect to have my share. The Daily Journal shareholders will have to take whatever outcome comes from caring more about our customers than is at all common. He was a one party system but he could always be removed by the electorate. Ill paraphrase here. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. and our FactSet (a) does not make any express or implied warranties of any kind regarding the data, including, without limitation, any warranty of merchantability or fitness for a particular purpose or use; and (b) shall not be liable for any errors, incompleteness, interruption or delay, action taken in reliance on any data, or for any damages resulting therefrom. Questions: Why are some people incapable of learning new ideas and behaviors? They really need the world to stay the way it is. I just see more and more of the rich people leaving. Charlie Munger: Well, I dont participate at all. And my advice would be if you have a fixable disadvantage, remove it. Its too volatile to serve well as a medium of exchange. 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