So, I dont think Bitcoin is going to end up as the medium of exchange for the world. For example, Coca-Cola in the past. It was a background that helped everybody. The directors are Gerry Salzman, Peter Kaufman, Mary Conlin, Gary Wilcoxwhos retiring nowand myself. In his early education, he was the second-ranked student in the school. I think all of this activity is regrettable. 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 And if you stop to think about it, that is also true at the Daily Journal. I think all good investing is value investing. I never buy any and neither does Daily Journal. My guess is we have suffered some editorial quality. Charlie Munger: I think Warren and I are better at buying mature industries than we are at backing startups like Sequoia. But I dont think thats going to end up with a mistake. I think the Chinese have behaved very shrewdly in managing their economy and theyve gotten better results than we have in managing our economy. Larry Summers has recently been quoted as being worried that were having too much stimulus. There are these periods in capitalism. I find that by working at that, I can actually make some improvements even though Im old. Key Points. It was absolutely incredible. Gerry, being a sound thinker, you know, did the very unpleasant work of shrinking it appropriately without bothering me or Rick. 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. All rights reserved. And they dont do that very wellIm talking about the business schools. Beyond restaurants, consumers showed a growing interest in many of the newer categories on our Marketplace in 2021. KWOT].AfOJQ=3U'(Jn6c3fBvvv[#"vsjQog:}CcS?t*Zh|gB;k1xER6fxE5fI6UVFs7v=ViHmg"qTELgJD(2*Q. And we probably have more of those shortcuts than others. Web2021. 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. Charlie Munger: Ben Franklin was one of the wisest men who ever lived. And what he does is he sells about half of them always. Youve reached the limit of my circle of competence. I was good at having low expectations and that helped me. And what are the implications, since Treasury assets underpin the value of every other asset? Thats our system. Of course, its hard to know what the future holds when in a complex system where you cant predict a lot of things. I think that that will probably continue. h`DU6,]Z a]T&LPuwIXX>4cGy82 You know, its just, its incredible whats happened in terms of the destruction. Question: Which do you think is crazier? All we can promise is that were gonna try and so far as I can tell, were doing pretty well. Question: Do you believe the valuations for electric car manufacturers are in bubble territory? 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 For a quarter in which we made only a handful of portfolio changes and essentially broke even, lot The death tax in China is zero. 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. They wouldnt be a lot happier if they were richer or a lot less happy if theyd been poor. I recognized early that Gerry could run anything he wanted to run. 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. Nobody should believe that Robinhoods trades are free. But, a very wise man said on an earlier occasion: The trouble with banking is that we have more banks than we have bankers. The only opinion I have there is that I dont think anybody knows whats going to happen for sure. He was a very smart man and he had a lot of good ideas. I dont think we have any great gift at making macroeconomic predictions. And he was a great kidder. Its hard to run a bank intelligently. But its hard for anybody. And if its unfixable, learn to live without it. I own some apartment houses, so I like that investment, provided youve got a perfect management which is hard to get. We bought all these buildings cheaply. Everybodys got a different situation. Is it Bitcoin, decentralized finance, or something else? Buffett recommended it. 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? And I dont know whether hes right or not. So, I think you can count on the fact that what were doing is going to be a big growing field. 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. If the seas were to rise 60 feet, which could happen in another 100 years or so, wed have to build enormous barriers to sea entry. I expect less out of bankers than he does. I dont think that hydrocarbons are going. And the next time around the poor will get richer faster than the rich. I think its much easier to find five than it is to find a hundred. Im pretty easy on myself these days. I knew a man once, Henry Singleton, who was not a chess champion. You have to be concerned about employees lives. 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. Charlie Munger: Its very hard to have a shrinking business. But I do think having a whole system to sell hydrogen is difficult. Its just that some people look for values in strong companies and some look for values in weak companies. I do think that Im way less afraid of inequality than most people who are bleeding about it. Both Berkshire and Li Lu own BYD Company which you spoke highly of in the past. Charlie Munger: Well no, I dont think we have a bubble in Treasury securities. WebCash Flow. And yet he made a lot of mistakes in the course of living his life. The number of people who ever got a chance to do it again is zero. Are Berkshires managers aware that through their efforts to create business success at Berkshire that they have been involved in saving millions of lives? The former majority owners of Bank of Blue Valley and Morill & Janes Bank, Bob Regnier and Kurt Saylor respectively, both signed the shareholder letter. Apartments have come through better. And so, we cant promise were going to succeed. 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. What, for example, is to stop the Chinese government from simply deciding one day to nationalize BYD? How are they similar or different? Charlie Munger: I think any rich nation ought to have a social safety net that expands a little with its wealth. I dont think Im likely to have any new thoughts that are going to work miracles either. On the other hand, it could be handled. And, for example, here, we must have 30 or 40 deaths. Charlie Munger: Well, I dont know how well the economys doing to work in the future. He had excellent judgment. Question: Has your opinion on cryptocurrencies remained the same? However, could you be more specific? I recommend that other people follow my example. In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. But everybody cant be better than everybody else. Due to the COVID-19 And when things get as crazy as they were in the event youre talking about, there are threats of clearinghouse failure. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. Who gets rich faster by class is going to vary over time and I dont think anybody should be too concerned by it. Question: Given all of your donations to physics, what is your favorite way of applying physics to societys problems and also to investing? That thing circulates. He gasped and said, but hes never had anything to do with newspapers or anything else. And I dont think youll find me engaged in the massive rezonings in the future. So, Im kind of pleased that Im still functioning at all. Put me down as skeptical. One is a big interest in Li Lus China fund, which is a limited partnership, and the other is a Vanguard index fund. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. Question: How important is the analysis of company culture in the investment process? Charlie Munger: 2022 Daily Journal Annual Meeting Transcript, Charlie Munger: 2020 Daily Journal Annual Meeting Transcript. And so, the stock went way up. 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. No, I dont think I have anything to contribute. The meeting was held on February 24, 2021. 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. Theyd take you through the building of the canals and the building of the railroads and so on and so on. April 14, 2022. Or, is it impossible to realize a deterioration quickly enough to exit without a loss? Thats very, very important. If you dont spend the money, you and your heirs get to spend it eventually. But he was 90 years of age. Nobody was trying to make the rich richer. Buffetts donations to the foundation have obviously helped to save many millions. 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? But, of course, you should start out by studying the history of capitalism, how it worked, and why before you start studying business. Dear shareholders: Over the past 25 years at Amazon, Ive had the I think people have the theory that any intelligent hardworking person can get to be a great investor. I think theyd run rings around me. 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: What is the wisdom behind holding bank stocks compared to other stocks. Or, has the digital revolution caused enormous productivity improvements in those businesses? Could you share the secret to living a long, healthy, and happy life? I dont think its easy for ordinary people to become great investors. I have a very simple idea on the subject. He doesnt mind at all not getting credit for his charitable donations. 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. D07"Kn And in biology, what happens is the individuals all die, and eventually, so do all the species. What, for example, would you recommend as course materials? Well, I dont think the quality of publishing public notice advertising has gone down. Question: It seems like everyoneincluding actors, athletes, singers, and politiciansis getting into the business of promoting their own SPAC. Question: In 1999, the year the Daily Journal bought Sustain Technologies, the traditional business employed 355 full-time employees and 61 part-time employees. He absolutely took over a malarial swamp and turned it into modern Singaporein his own lifetime. But the Chinese have proved that you dont need free speech to have a wonderful economy. Could you give more examples both good and bad ones from your personal observations or through vicarious readings? Question: You famously run investments through your mental checklist.