Charlie Munger - DJCO Annual Meeting

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JoMoney
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Charlie Munger - DJCO Annual Meeting

Post by JoMoney »

I know there are other fans of Charlie Munger on here, thought I would post a reminder that the Daily Journal Corporation (DJCO) of which Charlie is CEO will be having it's annual meeting live streamed on Yahoo! today 2/24/2021 @ 10am pacific
https://proxy.dailyjournal.com/Virtual% ... cement.pdf
The Q-A with Charlie is often quite interesting.

Also of note, in the "Chairmans Letter"
https://proxy.dailyjournal.com/proxy.htm
Charlie makes some interesting comments about the levels of the stock market and of DJCO
Charlie Munger in annual DJCO letter wrote:... a large trove of liquid wealth consisting of $28,963,000 in cash and marketable common stocks with a value of $179,368,000, offset by $29,493,000 in margin debt. This trove of liquid wealth backs up the Company’s operating businesses....
The value of the marketable securities reached $260 million on December 31, 2020, up 45% over their value at September 30, 2020, and shareholders should not expect any significant appreciation above that level anytime soon. ...
Charlie Munger in annual DJCO letter wrote:... The market price of one share of the Company’s outstanding common stock at December 31, 2020 was $404. And this price was reached amid (1) much speculative frenzy and (2) much forced buying by index funds. ...
The largest mutual fund holders of DJCO seems to be Russell 2000, Total Market, and Extended Market index funds
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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JoMoney
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Re: Charlie Munger - DJCO Annual Meeting

Post by JoMoney »

FWIW, if anyone else is watching, I find it easier to watch the Yahoo! Finance "Live" via youtube:
https://www.youtube.com/watch?v=5qGzNmXJ67g
Youtube will let you pause or rewind if you missed something, or delay watching a'bit then watch/listen at 2x speed (likely to be mostly dry)
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
WarAdmiral
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Re: Charlie Munger - DJCO Annual Meeting

Post by WarAdmiral »

Thanks! Gotta love Charlie!
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JoMoney
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Re: Charlie Munger - DJCO Annual Meeting

Post by JoMoney »

I got a hearty laugh out of his comment borrowing an Oscar WIlde quote on fox hunting, but directed at Bitcoin investing, “The unspeakable in pursuit of the uneatable!
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Charlie Munger - DJCO Annual Meeting

Post by WarAdmiral »

JoMoney wrote: Wed Feb 24, 2021 12:36 pm I got a hearty laugh out of his comment borrowing an Oscar WIlde quote on fox hunting, but directed at Bitcoin investing, “The unspeakable in pursuit of the uneatable!

:twisted: :twisted: Everytime i want a laugh, i see his and W.B's funny video compilation on youtube.
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A 97 Year-Old's Perspective [Charlie Munger speaks at annual meeting]

Post by swansong »

[Thread merged into here --admin LadyGeek]

Interesting read. Get those retirement calculators out - 97 and still in the game.

https://markets.businessinsider.com/cur ... 1030119897
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Re: A 97 Year-Old's Perspective

Post by keanoz »

Always a treat to hear Munger talk.
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Re: A 97 Year-Old's Perspective

Post by 000 »

Thanks.
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Re: A 97 Year-Old's Perspective

Post by Wricha »

Maybe because I old also, reading Mr Munger comments makes me smile.
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Re: A 97 Year-Old's Perspective

Post by UpperNwGuy »

It was interesting to read his brief comment about value investing. I'm so used to reading about value investing in the context of mutual funds that I had to read his comment twice to realize that he was talking about investing in individual companies, not funds.
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Re: A 97 Year-Old's Perspective

Post by theorist »

Great read. Munger is always a straight shooter. Thanks!
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Re: Charlie Munger - DJCO Annual Meeting

Post by Kagord »

When asked about of which massive $1T valuations of TSLA and BTC he prefers....."I can't decide the order of precedency between a flea and a louse.", coined from Samuel Johnson.

ROFLMAO, keep in mind, this guy was 47 in 1971 when we went to fiat, he just might know a thing or two being around the block a few times. Sometimes you gotta respect old school wit, and to make an off-hand comment like that at 97, that's really incredible.
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Re: A 97 Year-Old's Perspective

Post by carolinaman »

I love his sayings and wit. A very wise and experienced man.
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Re: A 97 Year-Old's Perspective

Post by Nowizard »

Many things that change over generations that we old folks have seen. Sometimes, we are correct, sometimes not, but many are never in doubt! No doubt about what Munger is saying from this old codger.

Tim
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JoMoney
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Re: Charlie Munger - DJCO Annual Meeting

Post by JoMoney »

Another interesting comment he made, was about diversification,
https://finance.yahoo.com/news/charlie- ... 27424.html

“a lot of people think if they have 100 stocks they're investing more professionally than they are if they have four or five."

“I regard this as insanity. Absolute insanity,” Munger said.

"I think it's much easier to find five than it is to find 100," the 97-year-old investor argued. "I think the people who argue for all this diversification, by the way, I call it 'diworsification,' which I copied from somebody. And I’m way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage.”
Which I think is an interesting point if one considers themselves an "active" investor trying to get an advantage over broad market returns, or is paying an active manager that's holding hundreds of stocks.
Benjamin Graham said as much as well, pointing out that diversifying a portfolio is in itself a repudiation of the skilled selectivity an active manager believes they have. Graham also pointed out though, how impossible it is to distinguish what information can be relied upon without being prone to large errors which leads to hedging with more diversification. For passive investors though, "Our advice to the defensive investor is
that he let it alone. Let him emphasize diversification more than individual selection."
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Charlie Munger - DJCO Annual Meeting

Post by firebirdparts »

He's such a hoot. I love the " shareholders should not expect any significant appreciation above that level anytime soon. ..."
This time is the same
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Re: Charlie Munger - DJCO Annual Meeting

Post by nedsaid »

JoMoney wrote: Thu Feb 25, 2021 9:15 am Another interesting comment he made, was about diversification,
https://finance.yahoo.com/news/charlie- ... 27424.html

“a lot of people think if they have 100 stocks they're investing more professionally than they are if they have four or five."

“I regard this as insanity. Absolute insanity,” Munger said.

"I think it's much easier to find five than it is to find 100," the 97-year-old investor argued. "I think the people who argue for all this diversification, by the way, I call it 'diworsification,' which I copied from somebody. And I’m way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage.”
Which I think is an interesting point if one considers themselves an "active" investor trying to get an advantage over broad market returns, or is paying an active manager that's holding hundreds of stocks.
Benjamin Graham said as much as well, pointing out that diversifying a portfolio is in itself a repudiation of the skilled selectivity an active manager believes they have. Graham also pointed out though, how impossible it is to distinguish what information can be relied upon without being prone to large errors which leads to hedging with more diversification. For passive investors though, "Our advice to the defensive investor is
that he let it alone. Let him emphasize diversification more than individual selection."
You have to guard against the possibility that you might be wrong on one or two of your stock picks. I have had the unhappy experience of having stocks crater on me: Lucent, Nortel, and AIG. Lucent in particular really, really hurt; what I didn't understand is that much of the market for its products was just going away as consumers were making the transition from landlines to wireless. With AIG, I didn't know they ran into liquidity problems when their credit default swaps went sour. I normally have 15-20 stocks in my individual stock portfolio so these losses hurt but certainly were not fatal.

What you find is that you don't always know what you think you know. I just could not have the bulk of my wealth in a handful of stocks. To think I would have about bet my life on Lucent at one time. The economy and the markets are dynamic and things can change faster than you realize, even insiders get taken by surprise.

It is true that stock pickers have only so many good ideas, after the 2000-2002 bear market I gave up on trying to pick big winners, what I really was doing was sampling the markets. I still like the idea of owning companies individually that I believe in for the long haul. I suppose whatever success I had was due to laziness and not diligence, I like very long holding periods for my stocks. Patience is a virtue. Even if you don't like to trade much, an individual stock portfolio needs some monitoring and maintenance.
A fool and his money are good for business.
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Re: Charlie Munger - DJCO Annual Meeting

Post by DJAlcatraz »

No disrespect to charlie munger, but he was anti BTC when it was at $8,000 and still anti BTC above $50,000. The issue I have with "old school" mentality is that they rarely admit that there are changes in the world, and has worked in the past, might not work in the future. So he could say "I dont understand Bitcoin, but it obviously has caught the attention of a lot of people/corporations and something that could be part of your portfolio. I dont recommend it because it is out of my expertise, and I dont understand it...." Instead, he continues to take aim at Tesla/Bitcoin etc as bad investments. Meanwhile, people are makiing more money buying/holding those assets than most of the equities he has. Im not saying he isnt successful, but the world is changing, and those who are open to new ideas and understanding things that most of us dont, are the ones leading into the next generation of finance/technology. In no way am I saying invest in Bitcoin or Tesla (Full disclosure, I have very small stakes in both) but i am open to the idea that everything I have learned is not the end all/be all. I take what Munger/Buffet say as great fundamentals, and they have their place. But I wont bet my future on it.

Imagine if Leo Durocher was still alive and said "I think pitchers should stay in the game and complete the game, there is no room for relievers, or closers...look at my world series rings as evidence" the game continues to evolove with new data, technology and even new rules. Im open to learning them.
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Re: A 97 Year-Old's Perspective [Charlie Munger speaks at annual meeting]

Post by LadyGeek »

This thread is now in the Investing - Theory, News & General forum (general discussion). I also retitled the thread.

Please stay focused on the investing aspects.
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Re: A 97 Year-Old's Perspective [Charlie Munger speaks at annual meeting]

Post by JoMoney »

FWIW, also had this earlier thread over here... viewtopic.php?f=10&t=341106
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Re: Charlie Munger - DJCO Annual Meeting

Post by LadyGeek »

^^^ Thanks! I combined the threads.
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Re: Charlie Munger - DJCO Annual Meeting

Post by 1789 »

JoMoney wrote: Thu Feb 25, 2021 9:15 am Another interesting comment he made, was about diversification,
https://finance.yahoo.com/news/charlie- ... 27424.html

“a lot of people think if they have 100 stocks they're investing more professionally than they are if they have four or five."

“I regard this as insanity. Absolute insanity,” Munger said.

"I think it's much easier to find five than it is to find 100," the 97-year-old investor argued. "I think the people who argue for all this diversification, by the way, I call it 'diworsification,' which I copied from somebody. And I’m way more comfortable owning two or three stocks which I think I know something about and where I think I have an advantage.”
Which I think is an interesting point if one considers themselves an "active" investor trying to get an advantage over broad market returns, or is paying an active manager that's holding hundreds of stocks.
Benjamin Graham said as much as well, pointing out that diversifying a portfolio is in itself a repudiation of the skilled selectivity an active manager believes they have. Graham also pointed out though, how impossible it is to distinguish what information can be relied upon without being prone to large errors which leads to hedging with more diversification. For passive investors though, "Our advice to the defensive investor is
that he let it alone. Let him emphasize diversification more than individual selection."
Very respectable person indeed. I also completely agree with him on picking 2-3 stocks if "one is good at this job." People need to just accept if they are not good and stop creating a random portfolio of 10-20 stocks, imho. Either pick 2-3 or own them all if you are not that good :wink:
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Re: Charlie Munger - DJCO Annual Meeting

Post by 1789 »

BTC vs Tesla comparison was also good and funny. Way to go Charlie!
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Re: Charlie Munger - DJCO Annual Meeting

Post by JoMoney »

Yahoo! FInance: Robinhood responds to Charlie Munger’s criticism: ‘Disappointing and elitist’

Funny to see them attack Munger as being "elitist" rather than address the costs of them selling order flow of their users, or the issues with their system specifically using slot-machine style antics and sounds encouraging gambling like activity.
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Re: Charlie Munger - DJCO Annual Meeting

Post by 1789 »

JoMoney wrote: Fri Feb 26, 2021 9:22 am Yahoo! FInance: Robinhood responds to Charlie Munger’s criticism: ‘Disappointing and elitist’

Funny to see them attack Munger as being "elitist" rather than address the costs of them selling order flow of their users, or the issues with their system specifically using slot-machine style antics and sounds encouraging gambling like activity.
Agreed. They are not ashamed of what they have done to people when they halted trading for millions and all the other hedge funds were doing as they want. So i don't expect anything good comes from RH.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)
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