The bad news is its not clear whos gonna win all the business or how much money is going to be made. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. Charlie Munger: I dont know how permanent its going to be but it certainly caused a change. And weve had marvelous people here to help us do it through very difficult times and one of them is Gerry Salzman. Other. Who gets rich faster by class is going to vary over time and I dont think anybody should be too concerned by it. In his closely read annual letter to shareholders, Jamie Dimon says he expects no more than 10% of JPMorgan employees to permanently work from Nobody was trying to make the rich richer. I think were into a lot less travel and a lot more Zooming. And that institution has two assets in its endowment account. Due to the COVID-19 They have created a strong culture of fanaticism about cost, quality, efficiency, and honor. He was very amiable the way he talked about it. How can you not? Gerald Salzman: Charlie refers to the courts, many times. Because even as a boy, I knew a lot about who was sound who wasnt sound in Ohama. But, I hardly think the editorial quality could go way up when employees were going down. And when the evidence came in that the system wasnt working very well because some of the employees were cheating some of the customers, they came down hard on the customers instead of changing the system. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. Culture is very important. Charlie Munger: Well, I certainly hope that they succeed mightily in their software endeavor to automate all these courts for the modern world. But I dont think everybody can be a great investor or a great chess player. He had excellent judgment. He was a very smart man and he had a lot of good ideas. Theres a lot of temptation to do dumb things which will make the earnings next quarter go up but are bad for the long term. That was not a startup, but it was so small and thinly traded that we were buying into a venture capital type investment but in the public market. I hope the newspaper survives too. When the pandemic is over, I dont think were going back to just the way things were. 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. A lot of the good rules of life are like that. That is true and makes sense. Charlie Munger spreads wisdom at the annual meeting for the Daily Journal. Thank you for all you do to educate us. We dont have any other secrets, do we Jerry? I was very lucky. All the good things. It seems to involve a lot of your standard causes of human misjudgment. Question: BYD is in the Daily Journal stock portfolio with a very big paper gain. 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. I regard this as insanity. 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? What do you think the long-term consequences will be? GE released its 2021 Annual Report today. We have offices in all the major cities in California and also in Logan, Utah. I think they would have come out worse because their position was so dire and the poverty was so extreme, they needed very extreme methods to get out of the fix they were in. 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? WebAnnual reports, proxies and shareholder letters. We always want to get the facts right. Absolute insanity. I cant help you. Youve said recently that Sequoia is the greatest investment firm ever. He was that smart. 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. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. So, Im kind of pleased that Im still functioning at all. Theyd take you through the building of the canals and the building of the railroads and so on and so on. It was a background that helped everybody. Copyright FactSet Research Systems Inc. All rights reserved. Put me down as skeptical. He was a very smart man. Charlie Munger: I dont know anything about Haven. Do it right the first time. As a matter of fact, what happens is to make a nation rich, you need a free market system. In other words, when we shout our knowledge out, were really pounding it out. I think all of this activity is regrettable. Buffetts donations to the foundation have obviously helped to save many millions. I said to Rick, were going to make Gerry the head of the Daily Journal. So we have one basic system configured in a number of different ways, including workers comp for a large state in the United States. Im Charlie Munger, Chairman, and to my right is Jerry Salzman, CEO. We miss Rick terribly. Has the quality gone down? 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 He said, figure out what works and do it. WebCash Flow. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. And I dont know whether hes right or not. Question: Charlie, you are known as an advocate for learning from ones mistakes. The kind of executives who have a Buffett-like mindset and never get in trouble are a minority group, not a majority group. Charlie Munger: Well, its most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. Charlie Munger: I have seen an episode or two of the Queens Gambit. Charlie Munger: I would go further. 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. Mr. Buffett gives a quick update on his investing lieutenants, Todd Combs and Ted Weschler, noting that they each now manage more than $10 billion of Berkshire's money. I recognized early that Gerry could run anything he wanted to run. Part of the reason for that was cultural. Everybody is. I love connecting with other curious nerds so if you have a comment to my article or want to introduce yourself, shoot me an email. There are these periods in capitalism. Everybodys got a different situation. Has the quality of the publication suffered as the employment levels have decreased? I didnt get to where I am by going after mediocre opportunities. In 2010, that was down to 165 full-time employees and 15 part-time employees. Question: Do you think value investing is still relevant in a GDP-decreasing world? Question: Has your opinion on cryptocurrencies remained the same? But theres no rule that life has to be easy on the mental side. Question: What advice would you give to someone who is trying to stay within their circle of competence but finding that the pace of technical technological innovation is rapidly reducing that circle? :qpt1cMt8\2&avSY9-;S6 |jw&.\ "P/cdx>5[_:Vt _;hgf1!||tx8Oz}Y=eHcu65gl-T >Tkbb,OxW]Y?W8p`? LimT;IZ}La`9tFG;hB*4bI*Kt,U7e~kEVzVTmT$k*(4>uBXrW0L-MYz g\uz:~F ],ZgKUVyaq5muCWc*uNSS1e/~;$wqNw;jJkyVG*"ns*~e15{f +%>\o-^^U]UpJW',/ Im not saying I wanted to live in China. And in biology, what happens is the individuals all die, and eventually, so do all the species. So, its a serious problem. Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. Its just that some people look for values in strong companies and some look for values in weak companies. Thats the reason he rose so fast in life. Chinas economic record among the big nations is the best that ever existed in the history of the world. 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. Facebook; Instagram; LinkedIn; Twitter; Youtube; Shop Amazon.com The word 'customer' occurs 25 times. Question: What do you hope the future of the Daily Journal Corporation looks like in a decade? Just time after time he would do something like that. So, you can understand why Warren got disenchanted with Wells Fargo. And I think thats what shareholders do. Were all pretty forgiving of ourselves too which is probably a good thing. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? 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. We bought all these buildings cheaply. He really knew everything you had to do to avoid credit losses in a small town in Illinois. Last year it quintupled. And thats not a sure thing either. Charlie Munger downplays risk of Taiwan invasion, says Thats an interesting example of self-learning. That word focuses Bezos and focuses the people that look to him for guidance. So, I dont think Bitcoin is going to end up as the medium of exchange for the world. stream <> And I just think it was academically inconvenient for them. Im way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage. Bitcoin reminds me of what Oscar Wilde said about fox hunting. On the other hand, as you say, I didnt get rich by buying stocks at high price-earnings multiples in the midst of crazy speculative booms. Many of our systems are in the cloud. Question: What is the wisdom behind holding bank stocks compared to other stocks. I recommend that other people follow my practice. Question: In recent years, Berkshire Hathaway has provided much greater insight into the companys succession thoughts and has made available at the annual meeting the companys leading managers that will steer Berkshires future. April 14, 2022. But its hard for anybody. And, we have to function as an informal committee in that we have to bring our employees and our clients together to work out what they already know and how we can help them do a better joba more efficient job. WebDaily Journal Corp. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. I think theyd run rings around me. 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. 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 So its very difficult. And thats the right way to do it. Charlie Munger: Well, of course, the places downsized. So, of course, I admire him. Charlie Munger: Well, heres what I meant. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. Rick was part of the group which consisted of Warren Buffett, Rick Guerin, and Charlie Munger that bought control of Blue Chip Stamps when it was widely distributed in an anti-trust settlement. Welcome! And we cant go to many offices because theyre closed. 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. Im afraid thats the way we all have to leave our swords. Charlie Munger: I think any rich nation ought to have a social safety net that expands a little with its wealth. 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. I think the Chinese have behaved very shrewdly in managing their economy and theyve gotten better results than we have in managing our economy. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. 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. I dont think it was a mistake to buy the Daily Journal when we did, paying the price we did. Charlie Munger: Well, generally speaking, I dont try and compete with Sequoia. Fundamental company data and analyst estimates provided by FactSet. Do you agree that there is a close parallel to the late 90s and that this, therefore, must end badly?. Charlie Munger: Well, I never owned a share of General Electric because I didnt like the culture. Its difficult to break into the legal advertising system which supports so many newspapers, not only in California but elsewhere. x\o6 >j.bY|UI\$nj'-Bdfv~QG#y9>}wU~;|=,a>?&UVDWUr{{&?:B%\DIzRYI'gYY]1$9|4JYf%rUe4.L_.J8h`?8([^RWQ/H?e}^6.bw{s Charlie Munger: Well, I cant top Lee Kuan Yews example. Of course, that made him very leery of dumb loans. And, we are really interested in doing a good job in Australia, in California, and all the other places where people have trusted us. The number of people who ever got a chance to do it again is zero. Join 4,000+ investment professionals and curious generalists by getting my latest articles, research, and insights directly to your inbox. Would you share a few stories about him and your fondest memory? Question: Last year, almost every ecommerce, internet, and internet adjacent stock was up 100 plus percent. That was a big error in judgment. The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. One thing I can promise is that I wont contribute much to it because I dont understand it. BYD stock did nothing for the first five years we held it. The directors are Gerry Salzman, Peter Kaufman, Mary Conlin, Gary Wilcoxwhos retiring nowand myself. WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. And the next time around the poor will get richer faster than the rich. 02/16. Question: [The questioner] quotes a commencement address you gave in 2007 at USC Law School. And you mentioned technologythats very, very important. At times in my life, I have put myself to a standard that I think has helped me: I think Im not really equipped to comment on this subject until I can state the arguments against my conclusion better than the people on the other side. Thats the nature of capitalism. He lived in a particular town. But he could play chess blindfolded at just below the Grandmaster level. So its a very theoretical discussion. If you go to a little country like Estonia, the whole damn country is on the internet and its a very good idea. But the accountants are duly elected. Tom Murphy used to say that his system of management was to delegate just short of total abdication. Gerald Salzman: None. In other words, to some extent, its a self-correcting system. Question: Eugene Abegg seems like he was one of the best bankers of the last century, achieving both extremely low loan loss rates and earning around 2% on assets over a long time period. Im not going to change. Without the method of learning, youre like a one-legged man in an ass-kicking contest. But Im flabbergasted at how well theyre doing. 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. Question: It is estimated that the Gates Foundation has saved well over 100 million lives. Is there any new material? They are joining the modern world very rapidly and theyre getting very skillful at operating. Charlie Munger: Ben Franklin was one of the wisest men who ever lived. Charlie Munger: Were really old both of us. I think people have the theory that any intelligent hardworking person can get to be a great investor. I dont think I can teach you how to retroactively get a new accident yourself. Considering their system, that is not what he should have been doing. In December 2019, we had a peak of 10 million daily meeting participants, but by April 2020, we were averaging 300 million daily meeting participants 30x growth in about three months. And, we hope to do well in it. People really trust Costco will be delivering enormous value. Copyright 2023 Surperformance. What are the psychological implications of this type of market behavior? One of my smartest friends in venture capital is constantly getting huge clumps of stocks at nosebleed prices. We do know one thing and that is that the courts of the whole world are going to be taken into the modern age. Can you speak to the causes, the trend, and make some predictions? Do you think the Daily Journal would have hundreds of millions of marketable securities now if Gerry didnt know how to learn something new? Opportunities to invest in underpriced stocks (banks in 2009, in particular, I believe) Nothing is very And what did the Chinese communists do with respect to death taxes? Its just not gonna work. Has there been anything that has surprised you, and what would be your best advice to someone starting a business now? That makes the whole thing very awkward. Question: I enjoyed your Caltech interview and wanted you to elaborate and provide more insights on your point of great investors and great chess players. Question: Do you believe global warming is an existential threat to humankind? 1 0 obj Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which He had a long and wonderful run. You can imagine its in a wonderful position and that excited the people in China which has its share of crazy speculators. Occasionally, some damned fool will suggest something that violates the laws of physics and I always turn off my mind the minute I realize the poor bastard doesnt know any physics. The daily journal stock sells way above the price I would pay if I was buying new stock. I think civilization would do better without it. Its such a simple idea. Florida would have a really serious problem. Share Charlie Munger, a shareholder and board member for The Daily Journal, is set to speak at the newspapers virtual annual meeting Wednesday. 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 Those are pretty good rules and theyre pretty simple. I own some apartment houses, so I like that investment, provided youve got a perfect management which is hard to get. In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. And, he was very good company and a splendid gentleman. Today, the majority of contractual revenue that can be identified is from implementations and licenses. They do way more good than harm. I dont think its like the newspaper business. To meet the surge in We discuss the company Berkshire Hathaway and the economic context in which it operates. That recognized reality and worked way better than what other people were doing. endobj The former majority owners of Bank of Blue Valley and Morill & Janes Bank, Bob Regnier and Kurt Saylor respectively, both signed the shareholder letter. Its one of the most ignorant professions in the world. That thing circulates. Question: Your advice given on choosing a good spouse in Poor Charlies Almanac is terse. They lose their money fast enough. I think you can count on the fact that if we really like the company and we like the managementand that is the way we feel about BYDwere likely to be a little too loyal.
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