Question: Last year, almost every ecommerce, internet, and internet adjacent stock was up 100 plus percent. Has the quality of the publication suffered as the employment levels have decreased? How do you recognize a potential downfall in a company you hold/invest in? We all live with that problem. One of the interesting things about the Daily Journal is that we made all that money in the foreclosure boom. I hope the newspaper survives too. I dont think I can teach you how to retroactively get a new accident yourself. He was very amiable the way he talked about it. And you mentioned technologythats very, very important. Nobody was trying to make the rich richer. And it has saved Los Angeles a fortune because gas is so much cheaper than gasoline. Question: Can you share some parting thoughts with the viewers who are watching all around the world? And he made a very favorable impression. Welcome! I feel the same way about those choices. Question: You and Warren have been adept at quickly sizing people up, particularly business leaders and potential business partners. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. 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 When these people go, there is none replacing them. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. BYD stock did nothing for the first five years we held it. Question: Ben Franklin said: Were it offered to my choice, I should have no objection to a repetition of the same life from its beginning, only asking the advantages authors have in a second edition, to correct some faults of the first. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. He doesnt mind at all not getting credit for his charitable donations. Question: Mr. Munger is a champion of Chinese stocks. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. Its too volatile to serve well as a medium of exchange. Were beholden to the guidelines of the county of Los Angeles and other counties. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. 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. Just think of the things that were once prosperous that are now in failure or gone. Charlie Munger: Early 70s. Charlie Munger: I have seen an episode or two of the Queens Gambit. Charlie Munger: Yes, I think it must end badly but I dont know when. The death tax in China is zero. I have a bust of Lee Kuan Yew in my house. You have to be concerned about employees lives. We paid two and a half million for it. And we immediately ascended, we put Gerry in, and hes made every decision wonderfully ever since. Interpretations of those facts will vary. Im satisfied with the way things have worked out and Im not gnashing my teeth when other people are doing better. Gerrys lived a long time too and I think we both have been lucky. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. 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. Of course, people behave more sensibly when theyre spending their own money. WebIn 2021, for example, we paid$3.3 billion while the U.S. Treasury reported total corporate income-tax receipts of $402 billion.Additionally, Berkshire pays substantial state and foreign taxes. Its really kind of an artificial substitute for gold, and since I never buy any gold, I never buy any Bitcoin. Imagine a bunch of Chinese communists turning a whole lot of Chinese and the billionaires in a big hurry. Never before in the history of mankind have we seen such a rapid eradication of poverty, pulling approximately 800 million people out of destitution. I think all good investing is value investing. On the other hand, we have a fair amount of time to do it. And so, we cant promise were going to succeed. Thats one you can easily arrange. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. 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. 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. The mantra he said over and over again is very simple. You can argue that I got close to Sequoia when with Li Lu we bought into BYD. 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. Question: Why, almost two years ago, did you believe that Costco was the only U.S. stock worth buying? %PDF-1.5 Charlie Munger: Well, its most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. And if you have a free market system thats trying to get rich in the way recommended by Adam Smith, what happens is that its a very irritating system because the poverty that causes so much misery is also causing the growth that makes everybody get out of poverty. Question: Is the oil and gas industry the new newspapers? The stock has gained so much this year and last year. D07"Kn So he was just a perfect banker if you wanted never to have any trouble. God knows it was difficult but I dont think its a mistake. 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. They dont work that hard at figuring out what works and what doesnt. He was a very smart man. So, you can understand why Warren got disenchanted with Wells Fargo. 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. Charlie Munger: Well, its natural for people to think their own civilization and their own nation are better than everybody else. So we have one basic system configured in a number of different ways, including workers comp for a large state in the United States. As a matter of fact, what happens is to make a nation rich, you need a free market system. stream Lesson 1: Choose your words wisely. A lot of the old moats are going away, and, of course, people are creating new moats all the time. I find that by working at that, I can actually make some improvements even though Im old. So you now know what I do in charitable institutions. 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. But he previously worked for Rick Guerin and me in running a little mutual fund that we bought control of. I dont think that hydrocarbons are going. At this rate, hell likely (hopefully) reach the longevity of Irving Kahn. People really trust Costco will be delivering enormous value. DAILY JOURNAL CORPORATION 915 E. 1st Street Los Angeles, California 90012 PROXY STATEMENT FOR ANNUAL These are very difficult questions and most people assume that its simple. Question: Has your opinion on cryptocurrencies remained the same? You know, its just, its incredible whats happened in terms of the destruction. You used examples of Lee Kuan Yews good judgment in choosing someone with brains over certain physical attributes in your past interview. Charlie Munger: Robinhood trades are not free. Do you agree with the premise and if so how would you address inequality? I expect that and I welcome it. So I think what China has done was probably right for China and that we shouldnt be so pompous as to be telling the Chinese they ought to behave like us because we like ourselves and our system. Question: What is the biggest lie currently being perpetuated by the investment complex? But I do think politics is getting more full of hatred and irrationality than it used to be in America and I dont think thats good. 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. Always on point. They had to because the traditional business newspaper business is shrinking. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? He had excellent judgment. I expect less out of bankers than he does. And, of course, it works way better than our medical system. I dont think well change on that. Can U.S. Treasury bonds be such a case today? He loved to kid people. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Everything you see is profit. You dont need to worry about them. Change value during other periods is calculated as the difference between the last trade and the most recent settle. But he knew how to learn what he didnt know. A lot of things are going to change. % That makes the whole thing very awkward. Is it Bitcoin, decentralized finance, or something else? Were going to bust our ass to try and do a good job. 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, of course, its going to create trouble as it did. 2021 Letter to Shareholders. Generally speaking, people assume that were a normal software company like Microsoft or something. But the accountants are duly elected. BYD sells at nearly 200 P/E. I think the result would have been worse if either party had been in control all by itself for the whole period. And he was a great kidder. Theyve served us well over the years. Data may be intentionally delayed pursuant to supplier requirements. Its not generally noticed by the public but clearinghouses clear all these trades. Could you share the secret to living a long, healthy, and happy life? Its just that some people look for values in strong companies and some look for values in weak companies. Are they more stable? But he could play chess blindfolded at just below the Grandmaster level. And, he was very good company and a splendid gentleman. But, of course, its a very difficult field. Buffett recommended it. On balance, we hold in certain of these position when, normally, we wouldnt buy a new position. Think of all the monopoly newspapers that used to be, in effect, part of the government of the United States. I was good at having low expectations and that helped me. Creating 360 value. Give me a new question. How would they think about current opportunities with low rates and low inflation? Any tips for someone who wants to work on and improve their ability to hold two opposing views at the same time? Charlie Munger: Ladies and gentlemen, wherever you are, via Yahoo finances website. And, of course, I think its vastly stupid for any state to be user-friendly to the rich people. I kind of admire the way Bill takes on these very hard problems. So we were like an undertaker who suddenly got prosperous in a plague year. Theron Mohamed Jan 22, 2021, 11:41 AM Charlie Munger. So, I think you can count on the fact that what were doing is going to be a big growing field. %%`EQ=@jMjkjJn. g5? 5T 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. Today, it hovers around 9500. That word focuses Bezos and focuses the people that look to him for guidance. And if there is one thing the world could learn from Singapore, what would that be? Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. Charlie Munger: I dont have any wonderful new thoughts. Charlie Munger: Well, I certainly hope that they succeed mightily in their software endeavor to automate all these courts for the modern world. One is a big interest in Li Lus China fund, which is a limited partnership, and the other is a Vanguard index fund. Charlie Munger: Well, he was one of my closest friends for many decades. But show me a psychology department that knows how to do that. WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. We are in fact being a more difficult type of software business than Microsoft. Charlie Munger: Well, I dont think its required that we be exactly the same on everything. 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. 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? Copyright 2023 Surperformance. Gerald Salzman: Always upbeat, yes. In 2010, that was down to 165 full-time employees and 15 part-time employees. Question: Of the various types of moats and competitive advantages, which types do you think will be most important in the years ahead, and what combinations of competitive advantages can you imagine will create any new types of moats? He really knew everything you had to do to avoid credit losses in a small town in Illinois. 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 he was just so good. 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. At the age of 97, Charlie Munger wasnot surprisinglysharp as a tack. Charlie Munger: Gerry, whats the biggest mistake weve made? Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. We discuss the company Berkshire Hathaway and the economic context in which it operates. We always want to get the facts right. Do it right the first time. In his closely read annual letter to shareholders, Jamie Dimon says he expects no more than 10% of JPMorgan employees to permanently work from Question: What have you done to live such a long life? And, I think that could happen, but, of course, thats not a sure thing. We do, as Charlie indicates, have a lot of travel. Were not enlarging 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. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. A little wisdom in spouse selection is very desirable. Question: What is the wisdom behind holding bank stocks compared to other stocks. Generally, what people do is they have financial reserves so they have some options if trouble comes, and they adapt the way Gerry has to require downsizings or require upsizings. Charlie Munger downplays risk of Taiwan invasion, says Theres an old German proverb Ive always liked. Gerry has done magnificently well. Share Charlie Munger, a shareholder and board member for The Daily Journal, is set to speak at the newspapers virtual annual meeting Wednesday. In other words, when we shout our knowledge out, were really pounding it out. Thats very, very important. 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. It wasnt some malevolence of the rich that caused it. Question: My question concerns China. I think most people who are assuming tolerable success in life are about as happy as they were ordained to be. Question: [The questioner] quotes a commencement address you gave in 2007 at USC Law School. Source: Kantar Media. Question: What books are you currently reading and what can you reccomend? Is it digital wallets like PayPal, Square, or Apple Pay? 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, Im kind of pleased that Im still functioning at all. A 2003 examination of what makes Berkshire Hathaway's subordinate CEOs successful. We have different tax considerations. Every value investor tries to get more value than he pays for. Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. When you pay for order flow, youre probably charging your customers more and pretending to be free. In 1860, GDP per capita in China was 600. I recognized early that Gerry could run anything he wanted to run. We got a dividend of two and a half million shortly thereafter. Charlie Munger: Well, I do have a tip. 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? And thats the way Eugene was in his community. And we pay huge taxes to a combination of the federal government and the state of California when we sell something. I think some of these things are very difficult and I think, by and large, its a mistake to hire investment managementto hire armies of people to make conclusions. 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. But I do think having a whole system to sell hydrogen is difficult. Also, subscribe to the newsletter to receive new research, articles, and other interesting stuff directly to your inbox. I tend to avoid the ones which Im not good at and Im not good at a lot of different problems. We were together in that for a long, long time, and then Rick and I did the Daily Journal together on another occasion. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. DAILY JOURNAL CORPORATION : Company profile, business summary, shareholders, managers, financial ratings, industry, sector and market information | And, of course, its regrettable. Copyright FactSet Research Systems Inc. All rights reserved. So, I dont think Bitcoin is going to end up as the medium of exchange for the world. Question: Youve spent much of your life contributing your wisdom to schools and hospitals. Question: You are one of the oldest and greatest thinkers of our time. And thats not a sure thing either. Charlie Munger: I dont know how permanent its going to be but it certainly caused a change. 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. 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. It doesnt happen anymore.
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