We take the situation as it is and try to solve it. 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. But everybody cant be better than everybody else. And since we are on the subject of selling potentially overvalued security, could you provide your systems for selling securities? It plans to build about 50,000 EVs in North America in the first half of We have our crotchets and I just dont know enough about it to want to go into that activity. Accounting is also in the cloud. 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. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. 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. My guess is we have suffered some editorial quality. The first rule of a happy life is low expectations. You're watching Yahoo Finance, live for this special exclusive coverage of the Theres hardly anything he touched he didnt improve. 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. Some people have a natural trend toward good judgment, and with other people, their life is just a series of mistakes over and over again. He knew everybody and everything. It was an accident. That is true and makes sense. What could investors do to cope better with periodical frenzy? And its rather interesting. So, of course, I admire him. Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. You once said to study the life and work of Lee Kuan Yew. The number of people who ever got a chance to do it again is zero. Charlie Munger: Ben Franklin was one of the wisest men who ever lived. 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. Charlie Munger: I think Ive learned to avoid zoning work. What do you look for in a leader? 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. Im not going to change. Just time after time, he would choose the right system. I think they stopped because if you taught that course, youd be stealing the best cases from the individual professors of marketing and so on and so on. Question: Which do you think is crazier? 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? Question: In your past speeches, you have mentioned the term functional equivalent of embezzlement to describe situations where bubbles can form because both parties involved in a bubble believe the asset to be worth more than it truly is. When I was young, I rezoned some properties very successfully. That approach will never go out of style. Culture is very important. Of course, that history is useful to know. Charlie Munger: Well, these things do happen in a market economy. 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. Were not enlarging it. 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. WebThe U.S. economy is strong. So, Im kind of pleased that Im still functioning at all. I just see more and more of the rich people leaving. It says that man is too soon old and too late smart. 3 0 obj
Gerry, can you ever remember Rick down? I find that by working at that, I can actually make some improvements even though Im old. 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? Charlie Munger spreads wisdom at the annual meeting for the Daily Journal. We paid two and a half million for it. 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. 24 min. What are his thoughts on modern monetary theory? But, I hardly think the editorial quality could go way up when employees were going down. This is cheap compared to Tesla currently valued at over 1100 times P/E and 24 times sales. But Im flabbergasted at how well theyre doing. 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. 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. Gerrys lived a long time too and I think we both have been lucky. I think any intelligent person can get to be pretty good as an investor and avoid certain obvious traps. Charlie Munger: I dont have any wonderful new thoughts. GE released its 2021 Annual Report today. It was totally required. How would they think about current opportunities with low rates and low inflation? Classified advertising is down significantly. Charlie Munger: Were really old both of us. That doesnt happen. Question: Last year, almost every ecommerce, internet, and internet adjacent stock was up 100 plus percent. Gerald Salzman: There are a number of factors that come into play here. And, what about passive investing? The Warren Buffett CEO by Robert P. Miles. So, I dont mind a little inequality and what I notice is that the rich families generally lose their power and wealthand pretty fast. How can you not? Charlie Munger: Early 70s. And like last year, you will in this note find a full transcript of the entire meeting. Charlie Munger: I dont know how permanent its going to be but it certainly caused a change. Charlie Munger: I think I had the right temperament. He cared terribly about not making bad loans or incurring dumb expenses. So, I think for some folks, early-stage investing is best, and for other folks, what Ive done in my life is best. Charlie Munger: Ladies and gentlemen, wherever you are, via Yahoo finances website. stream
Charlie Munger: Real estate has always been a difficult field. At the age of 97, Charlie Munger wasnot surprisinglysharp as a tack. Has the quality of the publication suffered as the employment levels have decreased? Who gets rich faster by class is going to vary over time and I dont think anybody should be too concerned by it. WebDaily Journal Corp. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. Theres an old German proverb Ive always liked. I think its just to some extent you either have it or you dont. Do it right the first time. 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. It doesnt happen anymore. Value Investing will never go out of style. And thats the way we handled Gerry. The second proposal is to ratify the appointment of our certified public accountant: Baker Tilly US, LLP. We got a dividend of two and a half million shortly thereafter. Those are pretty good rules and theyre pretty simple. Im satisfied with the way things have worked out and Im not gnashing my teeth when other people are doing better. We hope theyll continue doing magnificently well. Question: What books are you currently reading and what can you reccomend? Would you mind elaborating on how a professor or individual should go about building a curriculum around this approach? They dont work that hard at figuring out what works and what doesnt. Charlie Munger: Well, of course, its very hard to fix the global warming problem when the poorer countries need to burn coal to stay alive and so on. Because we have the proxies those directors are now reelected. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. Part of the reason for that was cultural. h`DU6,]Z a]T&LPuwIXX>4cGy82 So I dont worry that the country is being ruined by a few people over getting ahead a little faster than the rest of us. No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. Bitcoin at 50,000 or Teslas fully diluted enterprise value of 1 trillion. 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. 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. Charlie Munger: Well, generally speaking, I dont try and compete with Sequoia. We have offices in all the major cities in California and also in Logan, Utah. All except for the legal advertising system which we had to build because nobody else has the volume that we have. Question: Do you believe global warming is an existential threat to humankind? Everybody has shortcuts to screen out certain hazards. I am more willing to hold stocks at high multiples than I would be if interest rates were a lot lower. I prefer the United States. A little wisdom in spouse selection is very desirable. So, its a serious problem. Question: What do you hope the future of the Daily Journal Corporation looks like in a decade? They just copied Adam Smith and left out the free speech and it worked fine for them. But the Chinese have proved that you dont need free speech to have a wonderful economy. Of course, it really helped to know everybody in town. Thats interestingwho in the hell is voting against the accountants? Thats one you can easily arrange. We would all say that. I hope that that will continue in the future. 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. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. 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. Do you think that digital economy has reached a tipping point such that this time is different and that conventional valuation measures for these types of companies are dead, or does this environment remind you of 1999? 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. We admire the company and like its position. As a matter of fact, what happens is to make a nation rich, you need a free market system. 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. Thanks u/Arceus122. Charlie Munger: Yes, I think it must end badly but I dont know when. 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. % WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. Question: Last February, you spoke about the wretched excess in the financial system. How do you recognize a potential downfall in a company you hold/invest in? <>
Gerry, dont you think were doing pretty well? Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. On the other hand, the buses in Los Angeles work on natural gas. There are factories in China that are just absolutely full of robots and are working beautifully. You can hardly think of a decision that matters more to human felicity than who you marry. Theyve got a better reputation for providing value than practically anybody, including Amazon. 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 I have a very simple idea on the subject. And we cant go to many offices because theyre closed. Do you agree with the premise and if so how would you address inequality? I think civilization would do better without it. 2021 Key Results Total net revenue grew 55% year-over-year (YoY) to $2.765 billion Platform revenue increased 80% YoY to $2.285 billion Gross profit was up 74% YoY to $1.409 billion Active Accounts reached 60.1 million, a net increase of 8.9 million active accounts from Q4 2020 Streaming Hours increased by 14.4 billion hours YoY to That way, whatever happens, he feels smart. 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. 3 0 obj God knows it was difficult but I dont think its a mistake. Ive been around for a long time and my policy has always been to just write them out. I hope the newspaper survives too. It seems to involve a lot of your standard causes of human misjudgment. All those factors come into play and if you go back a little further, we eliminated California Lawyer magazine and we had one time a newspaper in Seattle and one in Denver. It reminds me of the key phrase and Bunyans Pilgrims Progress in which he says: My sword I leave to him who can wear it. We were trying to save the whole economy under terrible conditions. I think people have the theory that any intelligent hardworking person can get to be a great investor. Think of whats died in my lifetime. Would you share a few stories about him and your fondest memory? His method for doing it was so simple. He was just a very old-fashioned sound thinker. Lane Hickenbottom/Reuters Warren Buffett's longtime business partner called out a Last year it quintupled. And it was probably wise that we acted exactly as we did. It was absolutely incredible. Questions: Why are some people incapable of learning new ideas and behaviors? Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? Charlie Munger: Robinhood trades are not free. Practically everybody does that. A lot of the people who are doing this remote worka lot are going to work three days a week in the office and two days a week at home. Scan this QR code to download the app now. I think the oil and gas industry will be here for a long, long time. Charlie Munger: I think any rich nation ought to have a social safety net that expands a little with its wealth. And they dont just keep everlastingly at it the way he did. The kind of executives who have a Buffett-like mindset and never get in trouble are a minority group, not a majority group. And, of course, it works way better than our medical system. On the other hand, it could be handled. Thats what weve been doing throughout my whole lifetime. We bought all these buildings cheaply. I think all of this activity is regrettable. The mantra he said over and over again is very simple. He gasped and said, but hes never had anything to do with newspapers or anything else. Facebook; Instagram; LinkedIn; Twitter; Youtube; Shop Amazon.com Dear shareholders: Over the past 25 years at Amazon, Ive had the He didnt know one damn thing about the Daily Journal when we made him head of it. But theres no rule that life has to be easy on the mental side. Question: You identified the opportunity in electrification and invested in BYD. 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. We are in fact being a more difficult type of software business than Microsoft. If anybody can fix it, he can. 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. I think that would be insanity. The votes in favor of that are 995,356 against 120. I dont define that as value investing. Source: FactSet, Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Imagine a bunch of Chinese communists turning a whole lot of Chinese and the billionaires in a big hurry. Nobody was trying to make the rich richer. But the accountants are duly elected. Of course, its going to be difficult. Commission-free trading is not free. He had a long and wonderful run. Everybodys got a different situation. Question: You are one of the oldest and greatest thinkers of our time. I recommend that other people follow my example. So you now know what I do in charitable institutions. Where does it appear most egregious? The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. If you go to a little country like Estonia, the whole damn country is on the internet and its a very good idea. Key Points. And when things get as crazy as they were in the event youre talking about, there are threats of clearinghouse failure. Charlie Munger: Yes, I think that is rising as we sit here. I do think that Im way less afraid of inequality than most people who are bleeding about it. You used examples of Lee Kuan Yews good judgment in choosing someone with brains over certain physical attributes in your past interview. If you stop to think about it, business success long term is a lot like biology. I dont follow that practice but I dont criticize it either. 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 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. 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. Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. Its one of the most ignorant professions in the world. Cryptocurrencies: Cryptocurrency quotes are updated in real-time. I find it much easier to find four or five investments where I have a pretty reasonable chance of being right that theyre way above average. Both Berkshire and Li Lu own BYD Company which you spoke highly of in the past. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Question: It is estimated that the Gates Foundation has saved well over 100 million lives. I dont think its like the newspaper business. Youve said recently that Sequoia is the greatest investment firm ever. And when the old CEO of the Daily Journal died, Gerry was managing the business affairs of the Munger Tolles law firm. And there arent many people that can do that. I think theyre a bad investment when interest rates are this low. In other words, I think the system of checks and balances and elections that our founders gave us actually gave us pretty much the right policies during my lifetime. Charlie Munger: Well, I think all stocks can fluctuate. 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. Charlie Munger: Well, Im constantly making mistakes where I can, in retrospect, realize that I should have decided differently. You can imagine its in a wonderful position and that excited the people in China which has its share of crazy speculators. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. 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. Charlie Munger: I think Im alive because of a lucky genetic accident. Its just that some people look for values in strong companies and some look for values in weak companies. 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? %
Charlie Munger: Well, I never owned a share of General Electric because I didnt like the culture. Charlie Munger: Im sure some are, but, by and large, thats not what Warren is known for. Join 4,000+ investment professionals and curious generalists by getting my latest articles, research, and insights directly to your inbox. Charlie Munger: Well, I consider that very unlikely. I predict that if they do that, a lot of people will leave Washington. We discuss the company Berkshire Hathaway and the economic context in which it operates. There arent that many people like Lee Kuan Yew that have ever lived. The JTI software has been configured for other judicial and justice agencies, including district attorneys, prosecutors, public defenders, probation, etc. And do you and Warren have any tricks or shortcuts to size people up quickly and accurately? Whoever dreamed when I was young that Kodak and General Motors would go bankrupt. Any tips for someone who wants to work on and improve their ability to hold two opposing views at the same time? I would hate to compete with Sequoia in their field. I think theyre probably right, by the way. Question: Your advice given on choosing a good spouse in Poor Charlies Almanac is terse. 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. So, I think you can count on the fact that what were doing is going to be a big growing field. 4. 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? Are they more stable? Change value during the period between open outcry settle and the commencement of the next day's trading is calculated as the difference between the last trade and the prior day's settle. 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. Interpretations of those facts will vary. He was a one party system but he could always be removed by the electorate. He was that smart. Im not trying to move mountains. I think I would have lived a long time if I had lived a different life. Thats what the communists are doing. Im way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage. 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. He loved to kid people. Data may be intentionally delayed pursuant to supplier requirements. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. You are on record as a zealous fan of the Chinese work ethic and Confucian value system. Question: Why, almost two years ago, did you believe that Costco was the only U.S. stock worth buying? Nobody should believe that Robinhoods trades are free. Will we have fewer gas stations or truck stops in the future? Opportunities to invest in underpriced stocks (banks in 2009, in particular, I believe) Nothing is very <>/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>>
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 are the psychological implications of this type of market behavior? And he was a great kidder. I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. But he previously worked for Rick Guerin and me in running a little mutual fund that we bought control of. Capitalism is almost as brutal as that. And, of course, he hated costs. And, he was very good company and a splendid gentleman. Also, subscribe to the newsletter to receive new research, articles, and other interesting stuff directly to your inbox. And the next time around the poor will get richer faster than the rich. 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. And his conclusion is that mankind should just step up to it and do it. Sure, we all love the kind of civilization we have. We love it anyway. Ill paraphrase here. And by the way, I think its hard to teach. I dont think Im likely to have any new thoughts that are going to work miracles either. 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. When you pay for order flow, youre probably charging your customers more and pretending to be free. << /Filter /FlateDecode /Length 2607 >> Charlie Munger: Well, of course, if a person is a chronic drunk, we avoid him. Charlie Munger: Well, thats a very good question. All we can promise is that were gonna try and so far as I can tell, were doing pretty well. I tend to avoid the ones which Im not good at and Im not good at a lot of different problems. What were the lessons learned? Charlie Munger: I think Warren and I are better at buying mature industries than we are at backing startups like Sequoia. Gerald Salzman: Always upbeat, yes. Question: Charlie, you have been a long-time admirer of Singapore and Lee Kuan Yew. I think you should try and make your money in this world by selling other people things that are good for them. A lot of the good rules of life are like that. Because if you do that, Im a moral leper. I think the Chinese have behaved very shrewdly in managing their economy and theyve gotten better results than we have in managing our economy. Rose Blumpkin had quite an effect on the Berkshire culture. Its such a simple idea. All rights reserved. I think the bankers of today could learn a lot from Eugene, but little is known of him. Nothing contained on junto.investments constitute a solicitation, recommendation, endorsement, or offer by Junto or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. <>>>
Do you agree that there is a close parallel to the late 90s and that this, therefore, must end badly?. endobj
Daily Journal Corp : Submission of Matters to a Vote of Security Holders (form 8-K) AQ. You dont need to worry about them. So, to some extent, everybody buying medical services in Singapore is paying for it themselves. WebAnnual reports, proxies and shareholder letters. And he said; I cant decide the order of presidency between a flee and a louse. The bad news is its not clear whos gonna win all the business or how much money is going to be made. So human greed and the aggression of the brokerage community create these bubbles from time to time. Hed been a receiver for a bank. So far the evidence would be that maybe the monetary modern monetary theory is right. Just think of the things that were once prosperous that are now in failure or gone.
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