Mr. Buffett gives a quick update on his investing lieutenants, Todd Combs and Ted Weschler, noting that they each now manage more than $10 billion of Berkshire's money. 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. So, Im kind of pleased that Im still functioning at all. When I was young, I rezoned some properties very successfully. That word focuses Bezos and focuses the people that look to him for guidance. And, of course, thats a very dangerous way to invest. 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. And I think, by and large, we made the most practical decisions that were available to us. So its a very theoretical discussion. People really trust Costco will be delivering enormous value. I think you should try and make your money in this world by selling other people things that are good for them. That makes the whole thing very awkward. Charlie Munger: Full Transcript of the 2021 Daily Journal Meeting But he could play chess blindfolded at just below the Grandmaster level. Im just learning as I go along. And I applaud the result. 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? The stock appreciated probably way more than intrinsic value. He took over a malarial swamp with no army, no nothing. As a matter of fact, its not clear to me that China would have done better if theyd copied every aspect of English civilization. and our I didnt get to where I am by going after mediocre opportunities. He absolutely took over a malarial swamp and turned it into modern Singaporein his own lifetime. So, I dont think Bitcoin is going to end up as the medium of exchange for the world. At this rate, They lose their money fast enough. I think the oil and gas industry will be here for a long, long time. 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. Charlie Munger: Well, its natural for people to think their own civilization and their own nation are better than everybody else. Theyve served us well over the years. I would be curious to know how you started your interest in Singapore and Lee Kuan Yew. The JTI software has been configured for other judicial and justice agencies, including district attorneys, prosecutors, public defenders, probation, etc. WebThe U.S. economy is strong. You know, its just, its incredible whats happened in terms of the destruction. WebCash Flow. Charlie Munger: Well, I cant top Lee Kuan Yews example. Every value investor tries to get more value than he pays for. Capitalism is almost as brutal as that. Is there anything that you wish you had added to your checklist sooner? 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. The number of people who ever got a chance to do it again is zero. Think of whats died in my lifetime. Part of the reason for that was cultural. Where does it appear most egregious? If you dont have master the rest of the knowledge you cant synthesize it with psychology. 4. Thats interestingwho in the hell is voting against the accountants? What Jamie Dimon sees in JPMorgan, Wall Street future of work I wouldnt change my life all that well. << /Filter /FlateDecode /Length 2607 >> 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. 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 was very lucky. And he was a great kidder. However, could you be more specific? But its hard for anybody. He had a long and wonderful run. 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. To meet the surge in In Singapore, you get a savings account the day youre born. You saw the ebb and flow of industry and the creative destruction of the economic changes and so on. WebAnnual reports, proxies and shareholder letters. I think you can count on the fact that if we really like the company and we like the managementand that is the way we feel about BYDwere likely to be a little too loyal. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. Always intelligent. I think all of this activity is regrettable. And there was one woman who was a year older than he was who was the first-ranked student in the school. Charlie Munger: Well, I dont participate at all. I would imagine that applies to the broad market too. Charlie Munger Flags 'Speculative Frenzy' in Stocks, Lack of Bargains On the other hand, it could be handled. Copyright FactSet Research Systems Inc. All rights reserved. :qpt1cMt8\2&avSY9-;S6 |jw&.\ "P/cdx>5[_:Vt _;hgf1!||tx8Oz}Y=eHcu65gl-T >Tkbb,OxW]Y?W8p`? LimT;IZ}La`9tFG;hB*4bI*Kt,U7e~kEVzVTmT$k*(4>uBXrW0L-MYz g\uz:~F ],ZgKUVyaq5muCWc*uNSS1e/~;$wqNw;jJkyVG*"ns*~e15{f +%>\o-^^U]UpJW',/ You have to be concerned about employees lives. SVB Shareholder Action Reminder - MarketWatch And we probably have more of those shortcuts than others. Bitcoin reminds me of what Oscar Wilde said about fox hunting. Our editorial system and our advertising system are all in the cloud. 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. You're watching Yahoo Finance, live for this special exclusive coverage of the Question: You identified the opportunity in electrification and invested in BYD. Of course, if he had a chance to do it over again, he would avoid those mistakes. Charlie Munger: Well, I dont think its required that we be exactly the same on everything. Charlie Munger: I would go further. 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: Yes, I think that is rising as we sit here. Copyright 2023 Surperformance. Do you agree that there is a close parallel to the late 90s and that this, therefore, must end badly?. You can argue that I got close to Sequoia when with Li Lu we bought into BYD. 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. Charlie Munger: Well no, I dont think we have a bubble in Treasury securities. Scan this QR code to download the app now. Of course, its hard to know what the future holds when in a complex system where you cant predict a lot of things. Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Total And thats the way Eugene was in his community. Has the quality gone down? Do you think the Daily Journal would have hundreds of millions of marketable securities now if Gerry didnt know how to learn something new? He was old as I am. But, I find that the old ways of doing things still work. So, the shareholders have been lucky to have somebody like Gerry here who could learn what he didnt know and fix it. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. A lot of the good rules of life are like that. The kind of executives who have a Buffett-like mindset and never get in trouble are a minority group, not a majority group. Well, I dont think the quality of publishing public notice advertising has gone down. 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. And, pretty soon, he turned that into this gloriously prosperous place. What, for example, is to stop the Chinese government from simply deciding one day to nationalize BYD? But, I dont think Ive got a lot to contribute. So he married her. The one thing I will say is that a lot of the moats that looked impassable, people found a way to displace. Thats what the communists are doing. The wealth management industry has a crisis on its hands. The first rule of a happy life is low expectations. I dont think well change on that. What do you look for in a leader? Charlie Munger: Well, I hope we dont have fewer truck stocks because Berkshire Hathaway is deeply involved in truck stops. We were together in that for a long, long time, and then Rick and I did the Daily Journal together on another occasion. GM raises its 2023 earnings outlook | Automotive News February 11, 2022. So, of course, I admire him. 2 0 obj 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. 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? I find that by working at that, I can actually make some improvements even though Im old. Lesson 1: Choose your words wisely. Question: What have you done to live such a long life? So, no I dont think its the responsibility of management to assure where the stock sells. By the way, the Harvard Business School, when it started out way early, they started out with a history of the business. 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. 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. A rich civilization can afford to do it if we absolutely have to. Charlie Munger: Well, Lee Kuan Yew had the best record as a nation builder. We made the rich richer, not as a deliberate choice, but because it was an accidental byproduct of trying to save the whole civilization. That recognized reality and worked way better than what other people were doing. And he was just so good. Question: What is the biggest lie currently being perpetuated by the investment complex? 2021 Shareholder Letter And I dont think youll find me engaged in the massive rezonings in the future. When you get into these hard questions, theres a lot of very intelligent honorable people who reach opposite conclusions. Question: My question concerns China. Opportunities to invest in underpriced stocks (banks in 2009, in particular, I believe) Nothing is very But the Chinese have proved that you dont need free speech to have a wonderful economy. 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? Im satisfied with the way things have worked out and Im not gnashing my teeth when other people are doing better. Thats what weve been doing throughout my whole lifetime. Question: [The questioner] quotes a commencement address you gave in 2007 at USC Law School. 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. It was a background that helped everybody. I said it wont matter. It just created the most unholy mess. So he was just a perfect banker if you wanted never to have any trouble. They dont work that hard at figuring out what works and what doesnt. I call it deworsificationwhich I copied from somebody. Data are provided 'as is' for informational purposes only and are not intended for trading purposes. And he made a very favorable impression. 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 Charlie Munger: I dont think you can make that a moral responsibility. 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. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? You once said to study the life and work of Lee Kuan Yew. stream Bill Gates has written a book on this subject recently in which he concludes that it would be expensive but it could be handled. All the buses. Gerald Salzman: Well, we dont think about mistakes. It was an accident. 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. If anybody can fix it, he can. Charlie Munger: I think Ill skip that one. He was that smart. Charlie Munger: I dont know anything about Haven. Charlie Munger: Well, that is easy. And some bankers yield to the temptations. Have you considered amending this quote or lowering your standards? She created a business with like 500 depression dollars that became a huge business. Youre right. I have a very simple idea on the subject. [The questioner] would like to know what Charlies method of learning is. He was very amiable the way he talked about it. 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. When the pandemic is over, I dont think were going back to just the way things were. shareholder letters Question: I was wondering if you could share some thoughts on Haven, particularly why it was ultimately closed. And if there is one thing the world could learn from Singapore, what would that be? Question: What is the wisdom behind holding bank stocks compared to other stocks. Charlie Munger: Its very hard to have a shrinking business. Question: Do you think value investing is still relevant in a GDP-decreasing world? Charlie Munger: Well, of course, if a person is a chronic drunk, we avoid him. So, I dont mind a little inequality and what I notice is that the rich families generally lose their power and wealthand pretty fast. All the good things. Were going to bust our ass to try and do a good job. Youve said recently that Sequoia is the greatest investment firm ever. Charlie Munger: I think Im alive because of a lucky genetic accident. All rights reserved. And we immediately ascended, we put Gerry in, and hes made every decision wonderfully ever since. He had excellent judgment. International stock quotes are delayed as per exchange requirements. Furthermore, hed gone through the Great Depression. I came to law school having learned the method of learning and nothing has served me better in my long life than continuous learning. Given the developments over the past year, could you give us an update on your assessment of wretched excess in the system? 02/15. He was a one party system but he could always be removed by the electorate. Ellen Ireland will be inspector of elections. I dont think it was a mistake to buy the Daily Journal when we did, paying the price we did. Questions: Many major businesses and high net worth individuals have been leaving California. I feel the same way about those choices. 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 I dont know the answer. And I was like Rip Van Winkle; when I tried to come back to it, I found that the world had changed. How would they think about current opportunities with low rates and low inflation? Is it digital wallets like PayPal, Square, or Apple Pay? And it was probably wise that we acted exactly as we did. Im way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. The directors are Gerry Salzman, Peter Kaufman, Mary Conlin, Gary Wilcoxwhos retiring nowand myself. The votes in favor of that are 995,356 against 120. And if youre selling them gambling services where you make profits off of the top, like many of these new brokers who specialize in luring the amateurs in, I think its a dirty way to make money. \h_^cBa\"BfuLj@`}Ze jZ*l!-;LUe=v3+adjh4Sz8h*`iQ5>dZ;c8sgu[9|7$t}HkN5xv.,GqwYp0Y,53Urn i*5"x~z0GYkgPU0gbivl:"[Z@"S5mdY = 14M.6X!8&[R-p;a)}P5Y^wE7>L>39ju oH*crZRYTf 0@N',.>BP%M72HY=eY\ |Lt[kC&15YsATr*z=%4;mSH4%ZJ[WI]da f1u#{z)`|Es5dH^,X"I3V4&F@N]6# 7V}cDCY$P(Xa:FVPfl\V!ZA~jtSBtrleZuV"Nr7cA_ u!LC36Mh]82(M+ RR)mnk d=#:v4P^^xEbt:x85!K-yQK Nu=?vL]'.vq|1b* pS67-K^sqj By the way, thats not the normal outcome in America. Charlie Munger: Well, I do have a tip. So I think what China has done was probably right for China and that we shouldnt be so pompous as to be telling the Chinese they ought to behave like us because we like ourselves and our system. And if you cant do that, youre not gonna win the great chess championships of the world and youre not gonna do as well in business as Henry Singleton did. Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. The bad news is its not clear whos gonna win all the business or how much money is going to be made. And, I think Jack Ma was very arrogant to be telling the Chinese government how dumb they were, how stupid their policies were, and so forth. Question: Your advice given on choosing a good spouse in Poor Charlies Almanac is terse. Question: If you had a chance to make an addition or revision to Poor Charlies Almanac, what would that be? Ive been around for a long time and my policy has always been to just write them out. [As for] marketable securities, we prefer owning common stocks to holding cash under current conditions and its kind of an accident that we have so much in marketable securities. 2022 . Berkshires Performance vs. the S&P 500 That turned out to be a wonderful idea and thats one of the reasons we made all this money. He was a very smart man. And when things get as crazy as they were in the event youre talking about, there are threats of clearinghouse failure. The case, filed in February, challenges a plan to convert APEs, AMCs preferred shares, into common stock. In a shareholder letter, Barra said 2023 will be a "breakout year" for GM's Ultium-based EVs. And that isnt necessarily right for its customers. Theres an old German proverb Ive always liked. s=QFO?TT ze(0$ $$JI6[t_j%Suf.`2QW They just copied Adam Smith and left out the free speech and it worked fine for them. Charlie Munger: We will not be following Tesla into bitcoin. Considering their system, that is not what he should have been doing. Hell be able to do it. Charlie Munger: Well, I think all stocks can fluctuate. 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 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.

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