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. -, 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. 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. Charlie Munger: Gerry, whats the biggest mistake weve made? 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. What I see in China now just staggers me. We are subject to the orders and directions of those counties which, before, really didnt impact anything. Because if you do that, Im a moral leper. DAILY JOURNAL CORPORATION : Company profile, business summary, shareholders, managers, financial ratings, industry, sector and market information | And there was one woman who was a year older than he was who was the first-ranked student in the school. Im Charlie Munger, Chairman, and to my right is Jerry Salzman, CEO. Kipling once wrote a poem called The Women (The Ladies) and the concluding line was to the effect that you should learn about women from him instead of doing it yourself, because, he says, I know you wont follow my advice. If so, how do you think society should address it, especially because poor countries require much more cheap energy to reduce poverty? Have you considered amending this quote or lowering your standards? And theyre all dyingevery damn one of them almost. Could you please elaborate on the subject and could you consider giving a talk on this particular subject? On the other hand, we have a fair amount of time to do it. Hed been a receiver for a bank. Source: FactSet, Markets Diary: Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Its just that some people look for values in strong companies and some look for values in weak companies. WebShareholder Letter Q2 2022 AUGUST 9, 2022. These are very difficult questions and most people assume that its simple. Gerald Salzman: None. The only opinion I have there is that I dont think anybody knows whats going to happen for sure. 2022 Daily Journal Corporation Mungers Letter to The meeting will come to order. The number of people who ever got a chance to do it again is zero. Thanks u/Arceus122. And so, we cant promise were going to succeed. Exhibit 99.1 February 16, 2022 And, I was always aware of that and so Ive accepted these damned annual meetings. And would the Daily Journal consider Bitcoin or any other cryptocurrency as an asset on the balance sheet similar to what Tesla recently did? 2021 Letter to Shareholders | Accenture But, of course, its a very difficult field. What were the lessons learned? I was very lucky. 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. The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. Question: You have revised your famous talk on the standard causes of human misjudgment with considerable new material back in 2005. And thats the way Eugene was in his community. SVB Shareholder Action Reminder - MarketWatch WebDaily Journal. But he knew how to learn what he didnt know. Youve even said business schools that dont adopt this method are doing their students a disservice. Accounting is also in the cloud. On the other hand, the buses in Los Angeles work on natural gas. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. They lose their money fast enough. And I think the world would be better off without them. And it has saved Los Angeles a fortune because gas is so much cheaper than gasoline. Charlie Munger spreads wisdom at the annual meeting for the Daily Journal. Inside Daily Journal Corp's 10-K Annual Report: Financial - Expense Highlight. Charlie Munger: Well, I certainly hope that they succeed mightily in their software endeavor to automate all these courts for the modern world. Question: Last February, you spoke about the wretched excess in the financial system. When it gets difficult, I dont think theres any automatic fix for difficulty. 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. But, I find that the old ways of doing things still work. That happystat has more to do with their happiness and their outcomes in life. Questions: Many observers see market behavior that reminds them of the Dot Com bubble: wild speculation, endless SPACs, and IPOs soaring on their first day of trading. GM raises its 2023 earnings outlook | Automotive News Theres an old German proverb Ive always liked. And some bankers yield to the temptations. And, of course, I think its vastly stupid for any state to be user-friendly to the rich people. I call it deworsificationwhich I copied from somebody. And I think wise people should just stay out of them. But the Chinese have proved that you dont need free speech to have a wonderful economy. And I applaud the result. And when things get as crazy as they were in the event youre talking about, there are threats of clearinghouse failure. And I think thats what shareholders do. Charlie Munger: Were really old both of us. 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. International stock quotes are delayed as per exchange requirements. We take the situation as it is and try to solve it. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. I think theyre a bad investment when interest rates are this low. Were not enlarging it. In 2010, that was down to 165 full-time employees and 15 part-time employees. You can hardly think of anything more important in life than being reliable for the people who trust you. I learned those tendencies well enough to synthesize it with the rest of knowledge. We paid two and a half million for it. 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. I gave at the office is an unassailableassertion when made by Charlie Munger: Well, I dont participate at all. Imagine a bunch of Chinese communists turning a whole lot of Chinese and the billionaires in a big hurry. We were together in that for a long, long time, and then Rick and I did the Daily Journal together on another occasion. Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. 1 0 obj
Whoever dreamed when I was young that Kodak and General Motors would go bankrupt. Question: It is estimated that the Gates Foundation has saved well over 100 million lives. We have offices in all the major cities in California and also in Logan, Utah. KWOT].AfOJQ=3U'(Jn6c3fBvvv[#"vsjQog:}CcS?t*Zh|gB;k1xER6fxE5fI6UVFs7v=ViHmg"qTELgJD(2*Q. What do you think of all of the SPACs and the promoters pushing them? And thats very interesting. You have to be concerned about employees lives. 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. And its really stupid to have a culture that encourages as much gambling in stocks by people who have the mindset of race track betters. Question: Do you think value investing is still relevant in a GDP-decreasing world? DAILY JOURNAL CORPORATION : Shareholders Board And, of course, he hated costs. Source: FactSet. If you dont spend the money, you and your heirs get to spend it eventually. Part of the reason for that was cultural. 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. When you respond to software by the RFP process, its a very difficult, demanding business and its less profitable and less sure than what Microsoft does. The meeting was held on February 24, 2021. Source: FactSet, Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Theres hardly anything he touched he didnt improve. Are traditional dividends and share repurchases the likely end-stateassuming our software business grows into a bonafide companyor will buying and holding securities from time to time be what the board is comfortable with? 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. 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. Of course, people behave more sensibly when theyre spending their own money. In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. Charlie Munger: I dont think so. You are going to be flabbergasted. You are on record as a zealous fan of the Chinese work ethic and Confucian value system. And I think that that is inevitable because its difficult to be a good investor. And if you stop to think about it, that is also true at the Daily Journal. So human greed and the aggression of the brokerage community create these bubbles from time to time. Question: Mr. Munger recently raised the alarm about the level of money printing taking place. Charlie Munger: Well, that is easy. 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. 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. Are they more stable? Everything you see is profit. And thats not a sure thing either. In other words, when we shout our knowledge out, were really pounding it out. Question: You famously run investments through your mental checklist. And thats the right way to do it. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. 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 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. Were going to bust our ass to try and do a good job. Shareholder Join 4,000+ investment professionals and curious generalists by getting my latest articles, research, and insights directly to your inbox. And he made a very favorable impression. I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. I feel the same way about those choices. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. 2021 Ive been pretty quiet. What prevents the wide use of helpful psychological insight is the fact that psychology gets really useful when you integrate it with all other knowledge. 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 And what he does is he sells about half of them always. Well, I dont think the quality of publishing public notice advertising has gone down. One of my smartest friends in venture capital is constantly getting huge clumps of stocks at nosebleed prices. Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. They dont work that hard at figuring out what works and what doesnt. I think the world is gonna be quite different. I dont think I can teach you how to retroactively get a new accident yourself. We have our crotchets and I just dont know enough about it to want to go into that activity. You know, its just, its incredible whats happened in terms of the destruction. Considering their system, that is not what he should have been doing. Charlie Munger: Well, I dont think its required that we be exactly the same on everything. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. And, I think that could happen, but, of course, thats not a sure thing. A rich civilization can afford to do it if we absolutely have to. He was old as I am. Interpretations of those facts will vary. 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. Copyright 2023 Surperformance. Charlie Munger: Real estate has always been a difficult field. So he was just a perfect banker if you wanted never to have any trouble. And if there is one thing the world could learn from Singapore, what would that be? What do you think the long-term consequences will be? 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 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. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? And do you and Warren have any tricks or shortcuts to size people up quickly and accurately? Everybodys got a different situation. I dont know the answer. BYD stock did nothing for the first five years we held it. Always intelligent. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. 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. I came to law school having learned the method of learning and nothing has served me better in my long life than continuous learning. When these people go, there is none replacing them. She created a business with like 500 depression dollars that became a huge business. Daily Journal Question: Charlie, you are known as an advocate for learning from ones mistakes. Always tell the truth and never lie to anybody about anything. And they dont do that very wellIm talking about the business schools. Munger's terse letter to Daily Journal shareholders. WebIn 2021, we continued adding new restaurants to our Marketplace and third-party data suggests we remain the selection leader in the U.S. What would be a mistake at the Daily Journal which we can all learn from? :qpt1cMt8\2&avSY9-;S6 |jw&.\ "P/cdx>5[_:Vt _;hgf1!||tx8Oz}Y=eHcu65gl-T >Tkbb,OxW]Y?W8p`?
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Charlie Munger Flags 'Speculative Frenzy' in Stocks, Lack of Bargains You know what her mottoes were? I think this kind of crazy speculation in enterprises not even found or picked out yet is a sign of an irritating bubble. Written by Andy Jassy, CEO at Amazon. Question: Youve said several times that the best way to learn about business is to study the multi-decade financial results of great companies. Web2021. GM raises its 2023 earnings outlook | Automotive News You can imagine its in a wonderful position and that excited the people in China which has its share of crazy speculators. tzJ/wa*''=`R9+eJ}hv&iA+sn\/t`5q2(5l.h%
dD2)ls.sz M4Z6X_h+ak,+,D^'a%&2K~SO@z'9f)xC? 6ZERFyGh.Q{BoM$k2YNNV'Vq3yd;6. He lived in a particular town. The stock has gained so much this year and last year. And, of course, its all worked. Thats the nature of capitalism. 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. Ill paraphrase here. That approach will never go out of style. We made the rich richer, not as a deliberate choice, but because it was an accidental byproduct of trying to save the whole civilization. Question: Given all of your donations to physics, what is your favorite way of applying physics to societys problems and also to investing? And in biology, what happens is the individuals all die, and eventually, so do all the species. In fact, what a lot of shareholders actually do is crowd in buying stocks on frenzyfrequently on creditbecause they see that theyre going up. We hope theyll continue doing magnificently well. And we probably have more of those shortcuts than others. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. And there arent many people that can do that. He really knew everything you had to do to avoid credit losses in a small town in Illinois. Would you share a few stories about him and your fondest memory? The word 'customer' occurs 25 times. Have you met Lee Kuan Yew in person? Gerry, being a sound thinker, you know, did the very unpleasant work of shrinking it appropriately without bothering me or Rick. DAILY JOURNAL CORPORATION No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. Costco I do think has one thing that Amazon does not. We all live with that problem. Thats the good news. Were beholden to the guidelines of the county of Los Angeles and other counties. We are in fact being a more difficult type of software business than Microsoft. All rights reserved. Dear shareholders: Over the past 25 years at Amazon, Ive had the And when the old CEO of the Daily Journal died, Gerry was managing the business affairs of the Munger Tolles law firm. Question: Which do you think is crazier? Theyre just very simple. He doesnt mind at all not getting credit for his charitable donations. I find that by working at that, I can actually make some improvements even though Im old. We love it anyway. The Daily Journal shareholders will have to take whatever outcome comes from caring more about our customers than is at all common. The kind of executives who have a Buffett-like mindset and never get in trouble are a minority group, not a majority group. Its one of the most ignorant professions in the world. I think were into a lot less travel and a lot more Zooming. Gerrys lived a long time too and I think we both have been lucky. 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. Buffetts donations to the foundation have obviously helped to save many millions. We got a dividend of two and a half million shortly thereafter. 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. So its very difficult. As for some of our technology, like eFiling for example, the courts are closed. Thats what weve been doing throughout my whole lifetime. Im just learning as I go along. Can U.S. Treasury bonds be such a case today? He was a one party system but he could always be removed by the electorate. %%`EQ=@jMjkjJn. g5?
5T As we can see from the deteriorating U.S. relationship with China, the Western world does not understand China. Charlie Munger: 2022 Daily Journal Annual Meeting Transcript Also, fortunately before the pandemic, we got out of the conference-type events and we were not subjected to the problems of no conferences nobody to attend. But I do think having a whole system to sell hydrogen is difficult. Theron Mohamed Jan 22, 2021, 11:41 AM Charlie Munger. WebCash Flow. We do know one thing and that is that the courts of the whole world are going to be taken into the modern age. 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. How are they similar or different? You can hardly think of a decision that matters more to human felicity than who you marry. I recognized early that Gerry could run anything he wanted to run. And it was probably wise that we acted exactly as we did. 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. Everybody has shortcuts to screen out certain hazards. Question: How important is the analysis of company culture in the investment process? Its a very dishonorable low-grade way to talk. I didnt get to where I am by going after mediocre opportunities. 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. In 1978, the year Deng Xiaoping took over, it was 300. At this rate, Question: Mr. Munger is a champion of Chinese stocks. Questions: Why are some people incapable of learning new ideas and behaviors? In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which Charlie Munger: Well, generally speaking, I dont try and compete with Sequoia. I think I would have lived a long time if I had lived a different life. And I think both of us have done the same thing; we just suck it in and cope. I dont think Im likely to have any new thoughts that are going to work miracles either. I do think banking run intelligently is a very good business. 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? In other words, its your money. What could investors do to cope better with periodical frenzy? And weve had marvelous people here to help us do it through very difficult times and one of them is Gerry Salzman. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. Question: The highly configurable JTI product may help e-suites integrate deeply into new jurisdictions as agencies and citizens become familiar with the courthouse software. And his conclusion is that mankind should just step up to it and do it. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. 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. 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. And like last year, you will in this note find a full transcript of the entire meeting. Theyve served us well over the years. Charlie Munger: Well, I do have a tip. They had to because the traditional business newspaper business is shrinking. I think that would be insanity. Or, has the digital revolution caused enormous productivity improvements in those businesses? What are the psychological implications of this type of market behavior? Question: Why is Berkshire Hathaway selling shares of Wells Fargo as quickly as one can and the Daily Journal has sold one share? They really need the world to stay the way it is. The JTI software has been configured for other judicial and justice agencies, including district attorneys, prosecutors, public defenders, probation, etc. He was just a very old-fashioned sound thinker. You get crazy booms. What can we do to increase knowledge, understanding, and appreciation of the Chinese civilization? Theyre no longer using peasant girls to beat the brains out of our little shoe companies in America. Shareholders Julia La Roche - Amazon Web Services Ive been engaged in recent years in trying to create a better type of student dormitory. He was always upbeat. I dont think Gerry is surprised that the people doing the workMaryjo and Dannyare doing well. If you try and reduce the poverty too much, its counterproductive. Amazon's 1997 Shareholder Letter shareholder letters Charlie Munger: Well, I have the same difficulty that Samuel Johnson once had when he got a similar question. Charlie Munger: Well, thats a very good question. He had a long and wonderful run. And, pretty soon, he turned that into this gloriously prosperous place. Do it right the first time. Im pretty easy on myself these days. 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. 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. Charlie Munger: Well, of course, if they bring in a brand new technology you dont understand at all, youre at something of a disadvantage. % 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. It was a background that helped everybody. I think the bankers of today could learn a lot from Eugene, but little is known of him. Question: You are one of the oldest and greatest thinkers of our time. I think the result would have been worse if either party had been in control all by itself for the whole period. Yahoo Finance to stream Daily Journal annual meeting featuring It seems to involve a lot of your standard causes of human misjudgment. Florida would have a really serious problem. When I was young, I rezoned some properties very successfully. And my advice would be if you have a fixable disadvantage, remove it. Classified advertising is down significantly. See our Terms, Privacy Policy, and Disclaimer.