Question: With all the work from home with Zoom and other technology, what do you think the future of commercial real estate looks like? Its been amazing that one little company starting up not that many decades ago could become as big as Costco did as fast as Costco did. Many of our systems are in the cloud. xZF}W3y%Y{mZ#fHSMR-Er``F(VuSE()|"MT/+AIE"WUVm &IN/ qD2OM~-e.kvwySQ;&m.rOqK[z=7r|>*a[9ATrv92==I>6n2- ` #? Question: What have you done to live such a long life? s=QFO?TT ze(0$ $$JI6[t_j%Suf.`2QW WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. You used examples of Lee Kuan Yews good judgment in choosing someone with brains over certain physical attributes in your past interview. WebDaily Journal. And, we hope to do well in it. Munger Just time after time, he would choose the right system. If its not good enough for Berkshire, shouldnt we have the same standards? How do you decide to hold on to a stock or sell some? Question: What do you hope the future of the Daily Journal Corporation looks like in a decade? Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. It wasnt some malevolence of the rich that caused it. Question: Do you believe the valuations for electric car manufacturers are in bubble territory? 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. Sources: FactSet, Tullett Prebon, Currencies: Currency quotes are updated in real-time. I never buy any and neither does Daily Journal. The wealth management industry has a crisis on its hands. 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. The death tax in China is zero. I tend to avoid the ones which Im not good at and Im not good at a lot of different problems. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? Of course, thats a useful thing. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. He was a very smart man. So its very difficult. Charlie Munger: I think everybody is willing to hold stocks at higher price-earnings multiples when interest rates are as low as they are now. Youve reached the limit of my circle of competence. The stock has gained so much this year and last year. Were beholden to the guidelines of the county of Los Angeles and other counties. 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. Charlie Munger: Robinhood trades are not free. We love it anyway. 2023 Junto Investments, all rights reserved. If you do that all the time; if youre looking for disconfirming evidence and putting yourself on a grill, thats a good way to help remove ignorance. But, I dont think Ive got a lot to contribute. At about the same time, we bought a newspaper in Phoenix and that worked out extremely well. Question: What would management [of Daily Journal] do with a sudden windfall of profits? Florida would have a really serious problem. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. He was just so damn smart. On balance, we hold in certain of these position when, normally, we wouldnt buy a new position. A lot of things are going to change. But Henry was a genius. And do you and Warren have any tricks or shortcuts to size people up quickly and accurately? In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. Question: We have a couple of questions about J.P. Rick Guerin. Charlie Munger: Gerry, whats the biggest mistake weve made? I think its much easier to find five than it is to find a hundred. And, what about passive investing? Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. Theyve got a better reputation for providing value than practically anybody, including Amazon. 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. In 2010, that was down to 165 full-time employees and 15 part-time employees. As a matter of fact, its not clear to me that China would have done better if theyd copied every aspect of English civilization. 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. He was a very smart man and he had a lot of good ideas. I just see more and more of the rich people leaving. 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. But, of course, you should start out by studying the history of capitalism, how it worked, and why before you start studying business. 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. And would the Daily Journal consider Bitcoin or any other cryptocurrency as an asset on the balance sheet similar to what Tesla recently did? And they dont do that very wellIm talking about the business schools. When you get into these hard questions, theres a lot of very intelligent honorable people who reach opposite conclusions. I do think that we dont know what these artificially low interest rates are going to do or how the economy is going to work in the future as governments print all this extra money. %PDF-1.3 Its difficult to break into the legal advertising system which supports so many newspapers, not only in California but elsewhere. The directors are Gerry Salzman, Peter Kaufman, Mary Conlin, Gary Wilcoxwhos retiring nowand myself. Charlie Munger: Well, thats a very good question. Scan this QR code to download the app now. 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. That is true and makes sense. The only opinion I have there is that I dont think anybody knows whats going to happen for sure. Charlie Munger: Well, I do have a tip. How would you advise these institutions to manage their endowments over the coming decades? 4 0 obj When these people go, there is none replacing them. Charlie Munger: Well, it certainly does and thats the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would betting on horses. Charlie Munger: I dont have any wonderful new thoughts. 3 0 obj Charlie Munger: Well, I consider that very unlikely. endobj For a quarter in which we made only a handful of portfolio changes and essentially broke even, lot This helped drive average monthly order frequency higher in Q4 on both a Q/Q and Y/Y basis. endobj You get crazy booms. Question: Youve said several times that the best way to learn about business is to study the multi-decade financial results of great companies. By using our website or by closing this message box, you agree to our use of browser capability checks, and to our use of cookies as described in our Cookie Policy. 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? Without the method of learning, youre like a one-legged man in an ass-kicking contest. That word focuses Bezos and focuses the people that look to him for guidance. And that isnt necessarily right for its customers. Nobody should believe that Robinhoods trades are free. He loved to kid people. And like last year, you will in this note find a full transcript of the entire meeting. At this rate, hell likely (hopefully) reach the longevity of Irving Kahn. Cryptocurrencies: Cryptocurrency quotes are updated in real-time. And, of course, it works way better than our medical system. 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. It was totally required. Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. There are these periods in capitalism. [The questioner] would like to know what Charlies method of learning is. I dont think well change on that. 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. I think Im a little more lenient. You saw the ebb and flow of industry and the creative destruction of the economic changes and so on. And he said; I cant decide the order of presidency between a flee and a louse. Question: BYD is in the Daily Journal stock portfolio with a very big paper gain. And if its unfixable, learn to live without it. And, he was very good company and a splendid gentleman. That way, whatever happens, he feels smart. Its too volatile to serve well as a medium of exchange. And, of course, thats a very dangerous way to invest. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. 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 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. Our editorial system and our advertising system are all in the cloud. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Charlie Munger: Yes, I think it must end badly but I dont know when. Charlie Munger: Well, the people doing the computer software are doing magnificently wellthe people under Gerry: Maryjo and Danny. Im not going to change. Question: Charlie, you are known as an advocate for learning from ones mistakes. Question: What is the wisdom behind holding bank stocks compared to other stocks. On the other hand, we have a fair amount of time to do it. And that institution has two assets in its endowment account. So, you can understand why Warren got disenchanted with Wells Fargo. % stream Everybodys got a different situation. 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. 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. Interpretations of those facts will vary. If you stop to think about it, business success long term is a lot like biology. 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. Any tips on how to generate insight in these types of situations? And, we are really interested in doing a good job in Australia, in California, and all the other places where people have trusted us. What do you think we can do to help those who are currently falling behind as a result of this pandemic? By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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. We bought all these buildings cheaply. No one knows for sure just how much government intervention is wise and at what point the government should stop intervening. I admire him that much. Theres a lot of temptation to do dumb things which will make the earnings next quarter go up but are bad for the long term. Question: In this years annual letter, you mentioned the share price increase was driven by speculative frenzy and forced index buying. How did Eugene achieve incredibly low loan losses over the long term while so many other bankers have failed miserably? Of course, people behave more sensibly when theyre spending their own money. One of the great advantages of the way Berkshire operates is that we associate with a lot of marvelous people. Now, it sounds like anybody would know that made sense. 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. The case, filed in February, challenges a plan to convert APEs, AMCs preferred shares, into common stock. He was very amiable the way he talked about it. Charlie Munger: Its partly culture but a lot of it is just born in and its a quirk. 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. I dont think its easy for ordinary people to become great investors. I think office buildings are now in some trouble and, of course, commercial real estate rented to stores has been in a lot of trouble for a long time. I think all of this activity is regrettable. He was very courageous and generous in helping everybody around him all his life. See our Terms, Privacy Policy, and Disclaimer. And my advice would be if you have a fixable disadvantage, remove it. Question: Given all of your donations to physics, what is your favorite way of applying physics to societys problems and also to investing? So, its a serious problem. 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 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.

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