Charlie Munger: Ladies and gentlemen, wherever you are, via Yahoo finances website. 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? But, of course, you should start out by studying the history of capitalism, how it worked, and why before you start studying business. 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. Gerry, can you ever remember Rick down? 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. But, I dont think Ive got a lot to contribute. Thats the good news. A lot of the old moats are going away, and, of course, people are creating new moats all the time. Theron Mohamed Jan 22, 2021, 11:41 AM Charlie Munger. Question: If you had a chance to make an addition or revision to Poor Charlies Almanac, what would that be? Charlie Munger: 2022 Daily Journal Annual Meeting Transcript, Charlie Munger: 2020 Daily Journal Annual Meeting Transcript. Question: My question concerns China. At the age of 97, Charlie Munger wasnot surprisinglysharp as a tack. Charlie Munger: Well, you know, I had a failed marriage, so I dont think Im in the perfect position to advise the young about marriage. 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. 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 Question: What is the biggest lie currently being perpetuated by the investment complex? So, you can understand why Warren got disenchanted with Wells Fargo. We discuss the company Berkshire Hathaway and the economic context in which it operates. Charlie Munger: I dont have any wonderful new thoughts. And, we are really interested in doing a good job in Australia, in California, and all the other places where people have trusted us. Question: Previously, you have said; It takes character to sit with all that cash and do nothing. %%`EQ=@jMjkjJn. g5?
5T By the way, the Harvard Business School, when it started out way early, they started out with a history of the business. The votes in favor of that are 995,356 against 120. He gasped and said, but hes never had anything to do with newspapers or anything else. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which Has the quality gone down? What happened is that BYD is very well positioned for the transfer of Chinese automobile production from gasoline-driven cars to electricity-driven cars. 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. Question: Is the oil and gas industry the new newspapers? Could you give more examples both good and bad ones from your personal observations or through vicarious readings? stream
Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? Last year it quintupled. My guess is we have suffered some editorial quality. I am more willing to hold stocks at high multiples than I would be if interest rates were a lot lower. And if youre selling them gambling services where you make profits off of the top, like many of these new brokers who specialize in luring the amateurs in, I think its a dirty way to make money. I dont follow that practice but I dont criticize it either. Thats a really good rule. The number of people who ever got a chance to do it again is zero. WebMunger's terse letter to Daily Journal shareholders. He was death on corruption which was a very good idea. One of my smartest friends in venture capital is constantly getting huge clumps of stocks at nosebleed prices. Thats the nature of capitalism. 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. Do it right the first time. Lane Hickenbottom/Reuters Warren Buffett's longtime business partner called out a I have a very simple idea on the subject. But its hard for anybody. International stock quotes are delayed as per exchange requirements. Question: We have a couple of questions about J.P. Rick Guerin. You know what her mottoes were? Charlie Munger: Well no, I dont think we have a bubble in Treasury securities. But show me a psychology department that knows how to do that. 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: I dont think so. Questions: Many major businesses and high net worth individuals have been leaving California. You get crazy booms. If you dont have master the rest of the knowledge you cant synthesize it with psychology. For example, Coca-Cola in the past. Charlie Munger: Its quite importantpart of the success of a company like Costco. And, pretty soon, he turned that into this gloriously prosperous place. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. 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. What I see in China now just staggers me. I tend to avoid the ones which Im not good at and Im not good at a lot of different problems. But I dont think everybody can be a great investor or a great chess player. 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? 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. Its such a simple idea. The second proposal is to ratify the appointment of our certified public accountant: Baker Tilly US, LLP. In other words, its your money. His method for doing it was so simple. 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? Also, subscribe to the newsletter to receive new research, articles, and other interesting stuff directly to your inbox. You know, its just, its incredible whats happened in terms of the destruction. And, of course, what Im saying is that if I were teaching business I would start the way Harvard Business School did a long time ago. WebAnnual reports, proxies and shareholder letters. I think the bankers of today could learn a lot from Eugene, but little is known of him. I dont think we have made a lot of horrible mistakes. Tom Murphy used to say that his system of management was to delegate just short of total abdication. Youd say that everybody does that in their education but I dont think everybody does. Charlie Munger: Well, its natural for people to think their own civilization and their own nation are better than everybody else. Web2021. How do you reconcile the idea of paying 50 or 60 times revenue for a growing but unprofitable business with the more traditional value investing concept of a margin of safety? Charlie Munger: Well, its most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. %PDF-1.3 Copyright 2023 Surperformance. Washington State is actually considering a wealth tax at the state level. So, I think you can count on the fact that what were doing is going to be a big growing field. Those are pretty good rules and theyre pretty simple. If you stop to think about it, business success long term is a lot like biology. For a quarter in which we made only a handful of portfolio changes and essentially broke even, lot 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. So, I dont mind a little inequality and what I notice is that the rich families generally lose their power and wealthand pretty fast. If you were offered a fresh start today, what would you do differently in life and in investing? Nothing is particularly obvious for everybody to do the same thing. What, for example, is to stop the Chinese government from simply deciding one day to nationalize BYD? Im way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage. Charlie Munger: Well, we dont really know where its all going. Were beholden to the guidelines of the county of Los Angeles and other counties. On the other hand, the buses in Los Angeles work on natural gas. Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. Because even as a boy, I knew a lot about who was sound who wasnt sound in Ohama. Charlie Munger: Well, I so rarely hold a company like BYD that goes to a nosebleed price that I dont think Ive got a system yet. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. The Warren Buffett CEO by Robert P. Miles. Charlie Munger: Well, I dont know how well the economys doing to work in the future. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. 2 0 obj
Thats the reason he rose so fast in life. But everybody cant be better than everybody else. Ellen Ireland will be inspector of elections. But he was 90 years of age. Of course, that will still work. So, its a serious problem. Give me a new question. Key Points. Charlie Munger: Well, the one charitable institution where I have had some influence for a very long time has a whole bunch of hotshot financiers in every branch of wealth management there is on the board. Its just that the investment banking profession will sell shit as long as shit can be sold. And do you and Warren have any tricks or shortcuts to size people up quickly and accurately? Of course, that made him very leery of dumb loans. Considering their system, that is not what he should have been doing. The meeting will come to order. At this rate, Dear shareholders: Over the past 25 years at Amazon, Ive had the Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. But Im flabbergasted at how well theyre doing. So we were like an undertaker who suddenly got prosperous in a plague year. So, of course, I admire him. Are they more stable? 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. 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. Question: [The questioner] quotes a commencement address you gave in 2007 at USC Law School. 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. I recommend that other people follow my example. Ive been engaged in recent years in trying to create a better type of student dormitory. WebShareholder Letter Q2 2022 AUGUST 9, 2022. And we cant go to many offices because theyre closed. We do, as Charlie indicates, have a lot of travel. Charlie Munger: I think Ive learned to avoid zoning work. Buffett recommended it. Question: It seems like everyoneincluding actors, athletes, singers, and politiciansis getting into the business of promoting their own SPAC. It seems to involve a lot of your standard causes of human misjudgment. You saw the ebb and flow of industry and the creative destruction of the economic changes and so on. Hell be able to do it. We take the situation as it is and try to solve it. Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. We bought all these buildings cheaply. And I was like Rip Van Winkle; when I tried to come back to it, I found that the world had changed. I didnt get to where I am by going after mediocre opportunities. 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. [As for] marketable securities, we prefer owning common stocks to holding cash under current conditions and its kind of an accident that we have so much in marketable securities. Do you think this is a worthwhile policy objective given the effect it has on creating financial excesses and income inequality? 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. I dont think it was a mistake to buy the Daily Journal when we did, paying the price we did. Charlie Munger: Well, I dont participate at all. 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. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. 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) And I dont know whether hes right or not. And I think both of us have done the same thing; we just suck it in and cope. One of the interesting things about the Daily Journal is that we made all that money in the foreclosure boom. To meet the surge in Im Charlie Munger, Chairman, and to my right is Jerry Salzman, CEO. 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. And by the way, I think its hard to teach. Question: What would management [of Daily Journal] do with a sudden windfall of profits? I think people have the theory that any intelligent hardworking person can get to be a great investor. MarketScreener: Created by Investors for Investors! Charlie Munger: I think I had the right temperament. And another shareholder asked: Dear Mr. Munger, please share your thoughts on the recent /r/WallStreetBets GameStop short squeeze. February 11, 2022. I think that that will probably continue. He had a long and wonderful run. Charlie Munger: I have seen an episode or two of the Queens Gambit. Look around all this real estate. So, no I dont think its the responsibility of management to assure where the stock sells. He absolutely took over a malarial swamp and turned it into modern Singaporein his own lifetime. And the next time around the poor will get richer faster than the rich. Put me down as skeptical. Could you share the secret to living a long, healthy, and happy life? I regard this as insanity. Charlie Munger: Yes, I think it must end badly but I dont know when. Theyre no longer using peasant girls to beat the brains out of our little shoe companies in America. I said it wont matter. And I think, by and large, we made the most practical decisions that were available to us. Charlie Munger: Its very hard to have a shrinking business. The former majority owners of Bank of Blue Valley and Morill & Janes Bank, Bob Regnier and Kurt Saylor respectively, both signed the shareholder letter. 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 Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? The kind of executives who have a Buffett-like mindset and never get in trouble are a minority group, not a majority group.
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