daily journal shareholder letter 2021 daily journal shareholder letter 2021

WebCash Flow. Question: Eugene Abegg seems like he was one of the best bankers of the last century, achieving both extremely low loan loss rates and earning around 2% on assets over a long time period. The death tax in China is zero. << /Filter /FlateDecode /Length 2607 >> 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. Have you seen the television show Queens Gambit on Netflix? [The questioner] would like to know what Charlies method of learning is. Florida would have a really serious problem. [As for] marketable securities, we prefer owning common stocks to holding cash under current conditions and its kind of an accident that we have so much in marketable securities. Given the developments over the past year, could you give us an update on your assessment of wretched excess in the system? Can you provide similar insight regarding the future at the Daily Journal and would you consider implementing policies like those at Berkshire so shareholders can get to know the up-and-coming leaders in the organization? WebCharlie Munger at the 2021 Daily Journal annual meeting spoke once again at great length. And, we are really interested in doing a good job in Australia, in California, and all the other places where people have trusted us. Due to the COVID-19 So, of course, I admire him. Ellen Ireland will be inspector of elections. Question: If you had a chance to make an addition or revision to Poor Charlies Almanac, what would that be? Charlie Munger: Well, of course, if a person is a chronic drunk, we avoid him. Sources: FactSet, Dow Jones, Bonds: Bond quotes are updated in real-time. But I do think having a whole system to sell hydrogen is difficult. And its rather interesting. And thats the way Eugene was in his community. I think theyd run rings around me. 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. Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Total D07"Kn Creating 360 value. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. That word focuses Bezos and focuses the people that look to him for guidance. And we probably have more of those shortcuts than others. But Henry was a genius. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which And, of course, when things get extreme you have things like that short squeeze. All rights reserved. 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 was good at having low expectations and that helped me. Just think of the things that were once prosperous that are now in failure or gone. And, he was very good company and a splendid gentleman. WebDaily Journal Corp. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. Of course, his son, who is a bright man, is now Prime Minister of Singapore. Question: Charlie, you are known as an advocate for learning from ones mistakes. How are they similar or different? The Warren Buffett CEO by Robert P. Miles. 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 its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. 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. So we were like an undertaker who suddenly got prosperous in a plague year. If you were offered a fresh start today, what would you do differently in life and in investing? That was a big error in judgment. What do you make of these two pricings? 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. He was not a dictator. And in biology, what happens is the individuals all die, and eventually, so do all the species. Accounting is also in the cloud. The bad news is its not clear whos gonna win all the business or how much money is going to be made. 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. I think were into a lot less travel and a lot more Zooming. In 2010, that was down to 165 full-time employees and 15 part-time employees. So, its a serious problem. Without the method of learning, youre like a one-legged man in an ass-kicking contest. Question: What books are you currently reading and what can you reccomend? In other words, when we shout our knowledge out, were really pounding it out. I think you should try and make your money in this world by selling other people things that are good for them. 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. Cryptocurrencies: Cryptocurrency quotes are updated in real-time. Thank you for all you do to educate us. Charlie Munger: Well, its natural for people to think their own civilization and their own nation are better than everybody else. People really trust Costco will be delivering enormous value. Its not generally noticed by the public but clearinghouses clear all these trades. He didnt know one damn thing about the Daily Journal when we made him head of it. 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. WebMunger's terse letter to Daily Journal shareholders. Nobody should believe that Robinhoods trades are free. Gerry, dont you think were doing pretty well? I dont even know how much more difficultor how much more dangerousit would be to deal with hydrogen than it is to deal with gasoline which is also a dangerous substance. Charlie Munger: Well, that is easy. Charlie Munger: Robinhood trades are not free. What could investors do to cope better with periodical frenzy? stream Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. If I had stayed in Omaha, where I was raised, and gotten into the banking business, I would have been a hell of a good banker. Question: Is the oil and gas industry the new newspapers? I think when difficulty comes, I expect to have my share. 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. And, we have to function as an informal committee in that we have to bring our employees and our clients together to work out what they already know and how we can help them do a better joba more efficient job. 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. When I saw that psychology was necessary and I didnt have it, I didnt just learn the little tendencies well enough to get As in psychology. I said to Rick, were going to make Gerry the head of the Daily Journal. And I just think it was academically inconvenient for them. It was an accident. Cookie Notice I dont think Im likely to have any new thoughts that are going to work miracles either. Question: Last year, almost every ecommerce, internet, and internet adjacent stock was up 100 plus percent. Look around all this real estate. I call it deworsificationwhich I copied from somebody. 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. Privacy Policy. But we cant. Charlie Munger: Im sure some are, but, by and large, thats not what Warren is known for. No, I dont have any secrets. We always want to get the facts right. I recommend that other people follow my example. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 2 0 obj I have a bust of Lee Kuan Yew in my house. What would be a mistake at the Daily Journal which we can all learn from? I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. Question: Given all of your donations to physics, what is your favorite way of applying physics to societys problems and also to investing? Question: Do you think value investing is still relevant in a GDP-decreasing world? Youve even said business schools that dont adopt this method are doing their students a disservice. But, a very wise man said on an earlier occasion: The trouble with banking is that we have more banks than we have bankers. Question: Youve said several times that the best way to learn about business is to study the multi-decade financial results of great companies. 5. When these people go, there is none replacing them. xZF}W3y%Y{mZ#fHSMR-Er``F(VuSE()|"MT/+AIE"WUVm &IN/ qD2OM~-e.kvwySQ;&m.rOqK[z=7r|>*a[9ATrv92==I>6n2- ` #? Lesson 1: Choose your words wisely. Source: Kantar Media. In fact, what a lot of shareholders actually do is crowd in buying stocks on frenzyfrequently on creditbecause they see that theyre going up. Its too volatile to serve well as a medium of exchange. A lot of the good rules of life are like that. If we could make the world richer by just raising the minimum wage to $100,000 a second or something, of course we would do it but. We dont have any other secrets, do we Jerry? Written by Andy Jassy, CEO at Amazon. What do you think we can do to help those who are currently falling behind as a result of this pandemic? -, 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. 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. 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. They wouldnt be a lot happier if they were richer or a lot less happy if theyd been poor. That approach will never go out of style. We are subject to the orders and directions of those counties which, before, really didnt impact anything. It was a background that helped everybody. 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. 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? Has the quality of the publication suffered as the employment levels have decreased? International stock quotes are delayed as per exchange requirements. On balance, we hold in certain of these position when, normally, we wouldnt buy a new position. WebAnnual reports, proxies and shareholder letters. All the good things. Charlie Munger: Well, I cant top Lee Kuan Yews example. How would you advise these institutions to manage their endowments over the coming decades? But, I find that the old ways of doing things still work. And I dont think youll find me engaged in the massive rezonings in the future. And some types of real estate in recent years has been particularly difficult. Because even as a boy, I knew a lot about who was sound who wasnt sound in Ohama. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. 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 its much easier to find five than it is to find a hundred. 24 Feb 2021 Charlie Munger, Vice Chairman of Berkshire Hathaway, speaks at the Daily Journal Annual Meeting 22 Jan 2021 Warren Buffett's right-hand man flags a You dont need to worry about them. Charlie Munger: I think Ive learned to avoid zoning work. 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. You have to be concerned about employees lives. Buffetts donations to the foundation have obviously helped to save many millions. In display advertising, for example, we now utilize a very friendly company that worked with us for 25 years and now they are helping us sell advertising. How can you not? As a matter of fact, what happens is to make a nation rich, you need a free market system. Thats very, very important. Question: Charlie, you have been a long-time admirer of Singapore and Lee Kuan Yew. So, the people part has changed quite considerably being a small company. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. The first order of business is to reelect the four directors and the votes are as follows: Charles Munger, 679,481, Gerald Salzman, 660,287, Peter Kaufman, 593,336, Mary Conlon, 651,493. Could you share the secret to living a long, healthy, and happy life? 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. We discuss the company Berkshire Hathaway and the economic context in which it operates. Can you speak to the causes, the trend, and make some predictions? But, of course, you should start out by studying the history of capitalism, how it worked, and why before you start studying business. Charlie Munger: Well, Lee Kuan Yew had the best record as a nation builder. 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. She created a business with like 500 depression dollars that became a huge business. He had a long and wonderful run. I predict that if they do that, a lot of people will leave Washington. What do you think the long-term consequences will be? Furthermore, hed gone through the Great Depression. What, for example, would you recommend as course materials? However, could you be more specific? When I was young, I rezoned some properties very successfully. Web2021. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. Question: Do you think its best to invest in the common stocks of businesses early or while they are more nascent and the industry is smaller, or wait until they are the clear winner of a more mature industry? Do it right the first time. 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. WebShareholder Letter Q2 2022 AUGUST 9, 2022. Is there any new material? To meet the surge in And if you have a free market system thats trying to get rich in the way recommended by Adam Smith, what happens is that its a very irritating system because the poverty that causes so much misery is also causing the growth that makes everybody get out of poverty. What are the psychological implications of this type of market behavior? He was always upbeat. Scan this QR code to download the app now. All we can promise is that were gonna try and so far as I can tell, were doing pretty well. % DAILY JOURNAL CORPORATION 915 E. 1st Street Los Angeles, California 90012 PROXY STATEMENT FOR ANNUAL I dont define that as value investing. Change value during other periods is calculated as the difference between the last trade and the most recent settle. And that isnt necessarily right for its customers. This helped drive average monthly order frequency higher in Q4 on both a Q/Q and Y/Y basis. What can we do to increase knowledge, understanding, and appreciation of the Chinese civilization? :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',/ And like last year, you will in this note find a full transcript of the entire meeting. And they dont just keep everlastingly at it the way he did. And, I was not surprised when it blew up. That thing circulates. In other words, to some extent, its a self-correcting system. Always intelligent. Question: Last February, you spoke about the wretched excess in the financial system. 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 Its such a simple idea. Gerrys lived a long time too and I think we both have been lucky. I dont think well change on that. 02/15. Charlie Munger: Well, I dont think its required that we be exactly the same on everything. 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. We have our crotchets and I just dont know enough about it to want to go into that activity. Thats true whether youre Benjamin Franklin or Joe klutz. 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. Both Berkshire and Li Lu own BYD Company which you spoke highly of in the past. So, I think you can count on the fact that what were doing is going to be a big growing field. Question: You have revised your famous talk on the standard causes of human misjudgment with considerable new material back in 2005. But he knew how to learn what he didnt know. Or, has the digital revolution caused enormous productivity improvements in those businesses? We will now proceed to the question period. We miss Rick terribly. 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? Do you agree with the premise and if so how would you address inequality? Bookings in June 2022 totaled $217 million, up 8% (approximately 12% adjusted for the recent strengthening of the dollar against certain currencies) over And there arent many people that can do that. Theres an old German proverb Ive always liked. Now 16 years have passed. Charlie Munger: Well, generally speaking, I dont try and compete with Sequoia. Hell be able to do it. 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. As a result of holding those two positions, we have a lower cost than anybody else and we make more money than practically everybody else. 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. 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. WebShareholder Letter | Fiscal 2021 | 3 Fiscal 2021 also brought numerous challenges. And he was just so good. He had excellent judgment. And he said; I cant decide the order of presidency between a flee and a louse. And they dont do that very wellIm talking about the business schools. In other words, its your money. Inside Daily Journal Corp's 10-K Annual Report: Financial - Expense Highlight. The only opinion I have there is that I dont think anybody knows whats going to happen for sure. Chinas economic record among the big nations is the best that ever existed in the history of the world. 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. How do you recognize a potential downfall in a company you hold/invest in? Where does it appear most egregious? The number of people who ever got a chance to do it again is zero. Theyd take you through the building of the canals and the building of the railroads and so on and so on. 02/16. Its just not gonna work. Its difficult, but its not impossible investing in bank stocks successfully. Question: You are one of the oldest and greatest thinkers of our time. 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? Charlie Munger: Well, Im constantly making mistakes where I can, in retrospect, realize that I should have decided differently. 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. The psychology professors dont know all that much about the rest of knowledge and they have no incentive to master it. I think theyre probably right, by the way. They just copied Adam Smith and left out the free speech and it worked fine for them. Hed been a receiver for a bank. The stock has gained so much this year and last year. Charlie Munger: Modern monetary theory means that people are less worried about an inflationary disaster like Weimar Germany from government printing of money and spending it. 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. We are in fact being a more difficult type of software business than Microsoft. Charlie Munger: Well, I think all stocks can fluctuate. If you have unrealistic expectations, youre going to be miserable all your life. You get crazy booms. h`DU6,]Z a]T&LPuwIXX>4cGy82 As a matter of fact, its not clear to me that China would have done better if theyd copied every aspect of English civilization. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. And, of course, its regrettable. If you dont spend the money, you and your heirs get to spend it eventually. It wasnt some malevolence of the rich that caused it. We got a dividend of two and a half million shortly thereafter. WebIn 2021, we continued adding new restaurants to our Marketplace and third-party data suggests we remain the selection leader in the U.S. Warren Buffett is set to release his annual shareholder letter Saturday morning along with the conglomerates quarterly earnings. See our Terms, Privacy Policy, and Disclaimer. Considering their system, that is not what he should have been doing. And he was a great kidder. There arent that many people like Lee Kuan Yew that have ever lived. So, you can understand why Warren got disenchanted with Wells Fargo. Theyve got a better reputation for providing value than practically anybody, including Amazon. Bitcoin reminds me of what Oscar Wilde said about fox hunting. %%`EQ=@jMjkjJn. g5? 5T Thats what the communists are doing. 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. 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? So, the shareholders have been lucky to have somebody like Gerry here who could learn what he didnt know and fix it.