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? In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. People really trust Costco will be delivering enormous value. Youre better off concentrating your decision power on one person the way the Li Lu partnership does and then choose the right person. And when things get as crazy as they were in the event youre talking about, there are threats of clearinghouse failure. And, of course, he hated costs. Daily Journal Corporation - Shareholder/Analyst Call Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. On the other hand, we have a fair amount of time to do it. And I think the world would be better off without them. I dont think Ive got any great insight about hydrogen. 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. Charlie Munger: Im a great admirer of Jeff Bezos whom I consider one of the smartest businessmen who ever lived. 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 I recognized early that Gerry could run anything he wanted to run. And the next time around the poor will get richer faster than the rich. 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. DAILY JOURNAL CORPORATION He cared terribly about not making bad loans or incurring dumb expenses. Charlie Munger: Well, I do have a tip. Or, has the digital revolution caused enormous productivity improvements in those businesses? At this rate, And would the Daily Journal consider Bitcoin or any other cryptocurrency as an asset on the balance sheet similar to what Tesla recently did? In his closely read annual letter to shareholders, Jamie Dimon says he expects no more than 10% of JPMorgan employees to permanently work from 2021 Letter to Shareholders - About Amazon He doesnt mind at all not getting credit for his charitable donations. This is cheap compared to Tesla currently valued at over 1100 times P/E and 24 times sales. And thats not a sure thing either. He was death on corruption which was a very good idea. Data may be intentionally delayed pursuant to supplier requirements. I do think banking run intelligently is a very good business. Question: Why is Berkshire Hathaway selling shares of Wells Fargo as quickly as one can and the Daily Journal has sold one share? <>/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>> But, I hardly think the editorial quality could go way up when employees were going down. 2021 Letter to Shareholders | Accenture It doesnt happen anymore. So, I think for some folks, early-stage investing is best, and for other folks, what Ive done in my life is best. Florida would have a really serious problem. Copyright 2023 Surperformance. But I do think having a whole system to sell hydrogen is difficult. 02/15. We cant promise what the outcome will be but we are trying pretty hard and we get some favorable impressions of progress. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. Charlie Munger: Well, these things do happen in a market economy. Join 4,000+ investment professionals and curious generalists by getting my latest articles, research, and insights directly to your inbox. And I just think it was academically inconvenient for them. Were not enlarging it. I think the Chinese were very smart. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Shareholder Letters They lose their money fast enough. The JTI software has been configured for other judicial and justice agencies, including district attorneys, prosecutors, public defenders, probation, etc. Of course, thats a useful thing. Nobody was trying to make the rich richer. And when the old CEO of the Daily Journal died, Gerry was managing the business affairs of the Munger Tolles law firm. The stock has gained so much this year and last year. I have a very simple idea on the subject. Commission-free trading is not free. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. That was not a startup, but it was so small and thinly traded that we were buying into a venture capital type investment but in the public market. But its hard for anybody. Youve reached the limit of my circle of competence. And we pay huge taxes to a combination of the federal government and the state of California when we sell something. And he was just so good. And I dont know whether hes right or not. Charlie Munger: I have seen an episode or two of the Queens Gambit. But the accountants are duly elected. By the way, the Harvard Business School, when it started out way early, they started out with a history of the business. Written by Andy Jassy, CEO at Amazon. Chinas economic record among the big nations is the best that ever existed in the history of the world. 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 Do you agree with the premise and if so how would you address inequality? Dear shareholders: Over the past 25 years at Amazon, Ive had the No, I dont think I have anything to contribute. Charlie Munger: We will not be following Tesla into bitcoin. Source: FactSet, Indexes: Index quotes may be real-time or delayed as per exchange requirements; refer to time stamps for information on any delays. Interpretations of those facts will vary. Inside Daily Journal Corp's 10-K Annual Report: Financial - Expense Highlight. Gerald Salzman: Always upbeat, yes. 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. And I applaud the result. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? It wasnt some malevolence of the rich that caused it. Charlie Munger Speaks at the Daily Journals Annual Shareholders Meeting Interview of Charlie Munger by CNBCs Becky Quick, who selected and read a pair of questions from me. Question: Why, almost two years ago, did you believe that Costco was the only U.S. stock worth buying? Its just that the investment banking profession will sell shit as long as shit can be sold. Question: What is the biggest lie currently being perpetuated by the investment complex? And yet he made a lot of mistakes in the course of living his life. 4 0 obj On balance, we hold in certain of these position when, normally, we wouldnt buy a new position. I think the world is gonna be quite different. Its not generally noticed by the public but clearinghouses clear all these trades. Im just trying to get a feel for what the long-term capital allocation is. Question: Do you believe the valuations for electric car manufacturers are in bubble territory? Always on point. Do you agree that there is a close parallel to the late 90s and that this, therefore, must end badly?. Thats one you can easily arrange. I said to Rick, were going to make Gerry the head of the Daily Journal. Practically everybody does that. He was not a dictator. 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. We do, as Charlie indicates, have a lot of travel. 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. How concerned is he about Chinese government interference as seen recently with Ant Financial, Alibaba, and Mr. Jack Ma. So, its a serious problem. We use cookies and browser capability checks to help us deliver our online services, including to learn if you enabled Flash for video or ad blocking. Gerrys lived a long time too and I think we both have been lucky. Furthermore, hed gone through the Great Depression. Charlie Munger: Well, I consider that very unlikely. 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. I think all good investing is value investing. The disruption from the decline in newspapers has had a significant impact. SHAREHOLDERS ARE URGED TO DATE, FILL IN, SIGN, AND MAIL THE ENCLOSED PROXY IN THE ACCOMPANYING ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. But, of course, if we got a chance to do it again, we would do it better. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. And so, the stock went way up. They dont work that hard at figuring out what works and what doesnt. Thats very, very important. They had to because the traditional business newspaper business is shrinking. Think of whats died in my lifetime. I think the bankers of today could learn a lot from Eugene, but little is known of him. That happystat has more to do with their happiness and their outcomes in life. I think theyre a bad investment when interest rates are this low. %PDF-1.3 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? DJCO | Daily Journal Corp. Financial Statements - WSJ The hydrocarbons are also needed as chemical feedstocks. <> 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. MarketScreener: Created by Investors for Investors! Its just not gonna work. I think its just to some extent you either have it or you dont. We have our crotchets and I just dont know enough about it to want to go into that activity. We hope theyll continue doing magnificently well. Of course, that history is useful to know. All we can promise is that were gonna try and so far as I can tell, were doing pretty well. Of course, people behave more sensibly when theyre spending their own money. 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. WebDaily Journal. But Henry was a genius. What Jamie Dimon sees in JPMorgan, Wall Street future of work And, what about passive investing? All the good things. So, Im kind of pleased that Im still functioning at all. And there arent many people that can do that. It seems to involve a lot of your standard causes of human misjudgment. International stock quotes are delayed as per exchange requirements. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? I know Berkshire is a long-term owner and rarely sells securities of high-quality companies it owns in its portfolio simply because its overvalued. Daily Journal We got a dividend of two and a half million shortly thereafter. In Singapore, you get a savings account the day youre born. We focused and de-risked the company through strategic portfolio actions, significantly accelerated our debt reduction, 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. And some bankers yield to the temptations. I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. A 2003 examination of what makes Berkshire Hathaway's subordinate CEOs successful. You saw the ebb and flow of industry and the creative destruction of the economic changes and so on. and our So, to some extent, everybody buying medical services in Singapore is paying for it themselves. Charlie Munger: Well, that is easy. Question: What have you done to live such a long life? Take Gerry. 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. Theyd take you through the building of the canals and the building of the railroads and so on and so on. If you stop to think about it, business success long term is a lot like biology. I recommend that other people follow my example. 2 0 obj I think they would have come out worse because their position was so dire and the poverty was so extreme, they needed very extreme methods to get out of the fix they were in. Considering their system, that is not what he should have been doing. Key Points. 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. If you suffered losses exceeding $100,000 investing in SVB stock or options (i) between January 22, 2021, and March 10, 2023, inclusive (the "Class Period"); and/or (ii) Charlie Munger: Its hard to know what exact macroeconomic policy is correct. But the Chinese have proved that you dont need free speech to have a wonderful economy. I wouldnt change my life all that well. By the way, thats not the normal outcome in America. Scan this QR code to download the app now. Charlie Munger: Well, I hope we dont have fewer truck stocks because Berkshire Hathaway is deeply involved in truck stops. 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. Charlie Munger: Early 70s. Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? Question: Has your opinion on cryptocurrencies remained the same?
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daily journal shareholder letter 2021