How do you recognize a potential downfall in a company you hold/invest in? Question: My question concerns China. These are very difficult questions and most people assume that its simple. Its doing a big public service. DAILY JOURNAL CORPORATION 915 E. 1st Street Los Angeles, California 90012 PROXY STATEMENT FOR ANNUAL Costco I do think has one thing that Amazon does not. That makes the whole thing very awkward. Imagine a bunch of Chinese communists turning a whole lot of Chinese and the billionaires in a big hurry. How can you not? I think that that will probably continue. I think were into a lot less travel and a lot more Zooming. On the other hand, we have a fair amount of time to do it. Question: Last February, you spoke about the wretched excess in the financial system. Well, I dont think the quality of publishing public notice advertising has gone down. If so, how do you think society should address it, especially because poor countries require much more cheap energy to reduce poverty? New species are created and old species are dying. And thats what we have going in the stock market in a frenzy thats fed by people who are getting commissions and other revenues out of this new bunch of gamblers. And, of course, I think its vastly stupid for any state to be user-friendly to the rich people. 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. 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. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. 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. I think people have the theory that any intelligent hardworking person can get to be a great investor. And, I was not surprised when it blew up. Tom Murphy used to say that his system of management was to delegate just short of total abdication. You can hardly think of anything more important in life than being reliable for the people who trust you. Thats our system. Its really kind of an artificial substitute for gold, and since I never buy any gold, I never buy any Bitcoin. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which Sure, we all love the kind of civilization we have. Can U.S. Treasury bonds be such a case today? The disruption from the decline in newspapers has had a significant impact. Im just trying to get a feel for what the long-term capital allocation is. And thats the way we handled Gerry. Question: Youve spent much of your life contributing your wisdom to schools and hospitals. Charlie Munger: I think Warren and I are better at buying mature industries than we are at backing startups like Sequoia. Our editorial system and our advertising system are all in the cloud. What, for example, would you recommend as course materials? They wouldnt be a lot happier if they were richer or a lot less happy if theyd been poor. This is a highly desirable thing. 5. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. A rich civilization can afford to do it if we absolutely have to. Practically everybody does that. If you dont have master the rest of the knowledge you cant synthesize it with psychology. 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. Dear shareholders: Over the past 25 years at Amazon, Ive had the 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. Scan this QR code to download the app now. Charlie Munger: Gerry, whats the biggest mistake weve made? We always want to get the facts right. I think its just to some extent you either have it or you dont. And I think the directors of GE deserve a lot of credit for making Larry Culp the CEO. Both Berkshire and Li Lu own BYD Company which you spoke highly of in the past. And so I dont think its necessarily crazy that good companies sell at way higher multiples than they used to. Gerald Salzman: Well, we dont think about mistakes. What happened is that BYD is very well positioned for the transfer of Chinese automobile production from gasoline-driven cars to electricity-driven cars. When you pay for order flow, youre probably charging your customers more and pretending to be free. And if its unfixable, learn to live without it. Accounting is also in the cloud. 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. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? See our Terms, Privacy Policy, and Disclaimer. I dont think we have any great gift at making macroeconomic predictions. I dont think its like the newspaper business. You dont need to worry about them. Charlie Munger: I think Im alive because of a lucky genetic accident. Do you agree that there is a close parallel to the late 90s and that this, therefore, must end badly?. 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? And what are the implications, since Treasury assets underpin the value of every other asset? I think the bankers of today could learn a lot from Eugene, but little is known of him. Is it Bitcoin, decentralized finance, or something else? WebDaily Journal Corp. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. Would you mind elaborating on how a professor or individual should go about building a curriculum around this approach? In 1978, the year Deng Xiaoping took over, it was 300. Question: Your advice given on choosing a good spouse in Poor Charlies Almanac is terse. Do you agree with the premise and if so how would you address inequality? You are going to be flabbergasted. Charlie Munger: Well, these things do happen in a market economy. How do you decide to hold on to a stock or sell some? Charlie Munger: Well, I never owned a share of General Electric because I didnt like the culture. \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 % No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. So its very difficult. But, a very wise man said on an earlier occasion: The trouble with banking is that we have more banks than we have bankers. Creating 360 value. Without the method of learning, youre like a one-legged man in an ass-kicking contest. Due to the COVID-19 I find that by working at that, I can actually make some improvements even though Im old. When I was young, I rezoned some properties very successfully. Youll remember that when the first big bubble came, which was the South Sea bubble in England back in the 1700s, it created such havoc eventually when it blew up that England didnt allow hardly any public trading and securities of any companies for decades thereafter. He doesnt mind at all not getting credit for his charitable donations. Never before in the history of mankind have we seen such a rapid eradication of poverty, pulling approximately 800 million people out of destitution. Because we have the proxies those directors are now reelected. Question: BYD is in the Daily Journal stock portfolio with a very big paper gain. 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: What is the wisdom behind holding bank stocks compared to other stocks. <> Of course, it really helped to know everybody in town. So we were like an undertaker who suddenly got prosperous in a plague year. Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. Charlie Munger: I dont think you can make that a moral responsibility. It says that man is too soon old and too late smart. In fiscal 2021, we reached revenues of $50.5 billiona significant milestone that represents 11% growth in local currency and the addition of $6.2 The Daily Journal shareholders will have to take whatever outcome comes from caring more about our customers than is at all common. What is interesting is that in wealth management, a lot of people think that if they have a hundred stocks theyre investing more professionally than they are if they have four or five. 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. In 2010, that was down to 165 full-time employees and 15 part-time employees. And we immediately ascended, we put Gerry in, and hes made every decision wonderfully ever since. Charlie Munger: Well, I think all stocks can fluctuate. I think that shareholders should be more sensible and not crowd into stocks and buy them just because theyre going up and they like to gamble. That is true and makes sense. Munger I expect that and I welcome it. Gerald Salzman: Always upbeat, yes. He was a one party system but he could always be removed by the electorate. And I think that were crazy to allow it. 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. If you have unrealistic expectations, youre going to be miserable all your life. 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. The daily journal stock sells way above the price I would pay if I was buying new stock. And, he was very good company and a splendid gentleman. In fact, what a lot of shareholders actually do is crowd in buying stocks on frenzyfrequently on creditbecause they see that theyre going up. I recognized early that Gerry could run anything he wanted to run. He knew everybody and everything. 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. We were trying to save the whole economy under terrible conditions. And, as Gerry has just said to me just after breakfast, you wouldnt want to invest in a parking lot by a courthouse for the future because an awful lot of the court proceedings are going to go to the internet. The stock has gained so much this year and last year. All the good things. Charlie Munger: Well, I dont know how well the economys doing to work in the future. Im not trying to move mountains. 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. Bookings in June 2022 totaled $217 million, up 8% (approximately 12% adjusted for the recent strengthening of the dollar against certain currencies) over Culture is very important. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. Theyd take you through the building of the canals and the building of the railroads and so on and so on. Charlie Munger: Its very hard to have a shrinking business. Theyre in a place thats gotten more valuable. 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. I think the result would have been worse if either party had been in control all by itself for the whole period. stream I was very lucky. And the next time around the poor will get richer faster than the rich. Last year it quintupled. Generally speaking, people assume that were a normal software company like Microsoft or something. 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. WebShareholder Letter Q2 2022 AUGUST 9, 2022. We are subject to the orders and directions of those counties which, before, really didnt impact anything. He said, figure out what works and do it. Question: Is the oil and gas industry the new newspapers? If its not good enough for Berkshire, shouldnt we have the same standards? And some types of real estate in recent years has been particularly difficult. 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. A lot of things are going to change. And, of course, its regrettable. I think when difficulty comes, I expect to have my share. The content provided on the Junto Investments (Junto) website is for informational purposes only, and investors should not construe any such information or other content as legal, tax, investment, financial, or other advice. But he could play chess blindfolded at just below the Grandmaster level. What I see in China now just staggers me. Inside Daily Journal Corp's 10-K Annual Report: Financial - Expense Highlight. Cryptocurrencies: Cryptocurrency quotes are updated in real-time. I think that would be insanity. They lose their money fast enough. I predict that if they do that, a lot of people will leave Washington. And even if you have a natural gift, you cant be good at it unless you start playing at a very young age and get huge experience. -, Daily Journal Corp : Submission of Matters to a Vote of Security Holders (form 8-K), Charlie Munger downplays risk of Taiwan invasion, says crypto fans are 'idiots', Transcript : Daily Journal Corporation - Shareholder/Analyst Call, Secretary & Executive Vice President-Publications. 24 min. My guess is we have suffered some editorial quality. Theyre just very simple. Any tips on how to generate insight in these types of situations? Question: What books are you currently reading and what can you reccomend? Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. And that isnt necessarily right for its customers. What can we do to increase knowledge, understanding, and appreciation of the Chinese civilization? It was absolutely incredible. What, for example, is to stop the Chinese government from simply deciding one day to nationalize BYD? This helped drive average monthly order frequency higher in Q4 on both a Q/Q and Y/Y basis. He really knew everything you had to do to avoid credit losses in a small town in Illinois. Who gets rich faster by class is going to vary over time and I dont think anybody should be too concerned by it. Question: Its been a year since the coronavirus pandemic came to the U.S. What have you all learned about running a business in the past year? I dont follow that practice but I dont criticize it either. Could you give more examples both good and bad ones from your personal observations or through vicarious readings? 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? Delayed Nasdaq One thing I can promise is that I wont contribute much to it because I dont understand it. He gasped and said, but hes never had anything to do with newspapers or anything else. Im afraid thats the way we all have to leave our swords. I tell a story on Rick that he took the Navys IQ test and got one of the highest scores ever recorded and left early. 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. Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. I think the Chinese have behaved very shrewdly in managing their economy and theyve gotten better results than we have in managing our economy. 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. You can hardly think of a decision that matters more to human felicity than who you marry. Thats one you can easily arrange. Remember the Dot Com boom when every little building in Silicon Valley ran into a huge price and a few months later about a third of them were vacant. We cant promise what the outcome will be but we are trying pretty hard and we get some favorable impressions of progress. I think all of this activity is regrettable. 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. Of course, thats a useful thing. And by the way, I think its hard to teach. Were going to bust our ass to try and do a good job. 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. What are his thoughts on modern monetary theory? That recognized reality and worked way better than what other people were doing. Ive been engaged in recent years in trying to create a better type of student dormitory. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. Thats the nature of capitalism. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Questions: Many major businesses and high net worth individuals have been leaving California. So, no I dont think its the responsibility of management to assure where the stock sells. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? Today, it hovers around 9500. I think this kind of crazy speculation in enterprises not even found or picked out yet is a sign of an irritating bubble. He was death on corruption which was a very good idea. That approach will never go out of style. He was fun to be with because he was always jumping out of airplanes and parachutes and running marathons and so on, doing all kinds of things I would never consider doing. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. Question: You and Warren have been adept at quickly sizing people up, particularly business leaders and potential business partners. When I look at the modern Singapore health system, it costs 20% of what the American system costs. Charlie Munger: Well, heres what I meant. So we have one basic system configured in a number of different ways, including workers comp for a large state in the United States. Written by Andy Jassy, CEO at Amazon. He was a very smart man and he had a lot of good ideas. You know, its just, its incredible whats happened in terms of the destruction. Everything you see is profit. But I do think having a whole system to sell hydrogen is difficult. At this rate, hell likely (hopefully) reach the longevity of Irving Kahn. I admire him that much. In other words, its your money. Charlie Munger: Well, of course, if they bring in a brand new technology you dont understand at all, youre at something of a disadvantage. And, we are really interested in doing a good job in Australia, in California, and all the other places where people have trusted us. They dont work that hard at figuring out what works and what doesnt. 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. Cookie Notice They do way more good than harm. I would imagine that applies to the broad market too. We have our crotchets and I just dont know enough about it to want to go into that activity. So he was just a perfect banker if you wanted never to have any trouble. :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',/ If anybody can fix it, he can. Of course, its hard to negotiate in such a field. And when the old CEO of the Daily Journal died, Gerry was managing the business affairs of the Munger Tolles law firm. Question: In this years annual letter, you mentioned the share price increase was driven by speculative frenzy and forced index buying. But, I hardly think the editorial quality could go way up when employees were going down. The Warren Buffett CEO by Robert P. Miles. I cant help you. Question: You famously run investments through your mental checklist. 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. However, is there a price too high that the companys future profits simply cannot justify? Question: You have revised your famous talk on the standard causes of human misjudgment with considerable new material back in 2005. So its a very theoretical discussion. The best venture capital operation probably in the whole world is Sequoias and they are very good at this early stage investing. Chinas economic record among the big nations is the best that ever existed in the history of the world. And he made a very favorable impression. 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. You are on record as a zealous fan of the Chinese work ethic and Confucian value system. If you try and reduce the poverty too much, its counterproductive. 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.
Mj Arsenal Limited Edition,
Georgetown Medical School Faculty,
Sinulog Festival Culture Is Shared,
Ffxi Lockstyle Guide,
Taliesin Jaffe And Marisha Ray Relationship,
Articles D