daily journal shareholder letter 2021

The Warren Buffett CEO by Robert P. Miles. GE released its 2021 Annual Report today. I dont think its easy for ordinary people to become great investors. When I look at the modern Singapore health system, it costs 20% of what the American system costs. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. Value Investing will never go out of style. Youve even said business schools that dont adopt this method are doing their students a disservice. Im just trying to get a feel for what the long-term capital allocation is. I think people have the theory that any intelligent hardworking person can get to be a great investor. Question: Your advice given on choosing a good spouse in Poor Charlies Almanac is terse. stream Whoever dreamed when I was young that Kodak and General Motors would go bankrupt. Munger Absolute insanity. 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. It showsed how wise we were to put him there in the first place. In other words, its your money. And there was one woman who was a year older than he was who was the first-ranked student in the school. Always on point. But the accountants are duly elected. 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. Buffetts donations to the foundation have obviously helped to save many millions. See our Terms, Privacy Policy, and Disclaimer. There arent that many people like Lee Kuan Yew that have ever lived. When it gets difficult, I dont think theres any automatic fix for difficulty. And, of course, it works way better than our medical system. And were gonna play that as hard as we can. A lot of the old moats are going away, and, of course, people are creating new moats all the time. For example, Coca-Cola in the past. And what he does is he sells about half of them always. That approach will never go out of style. 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? And we cant go to many offices because theyre closed. 2021 Shareholder Letter Do it right the first time. So, I think you can count on the fact that what were doing is going to be a big growing field. He lived in a particular town. Of course, that made him very leery of dumb loans. Some people have a natural trend toward good judgment, and with other people, their life is just a series of mistakes over and over again. It says that man is too soon old and too late smart. And, of course, he hated costs. 2021 In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which Charlie Munger: Well, I do have a tip. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. The hydrocarbons are also needed as chemical feedstocks. Shareholder This years annual report suggests that the traditional business has 97 full-time employees. And thats the way we handled Gerry. Charlie Munger: Well, its most egregious in the momentum trading by novice investors lured in by new types of brokerage operations like Robinhood. Considering their system, that is not what he should have been doing. Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Total WebCash Flow. Its difficult, but its not impossible investing in bank stocks successfully. What else can you do? Hell be able to do it. Theyre no longer using peasant girls to beat the brains out of our little shoe companies in America. He said it was the pursuit of the uneatable by the unspeakable. To the extent that my thoughts have helped my life, I think Ive pretty well run the course. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. I dont think we have any great gift at making macroeconomic predictions. For more information, please see our What do you look for in a leader? 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. But show me a psychology department that knows how to do that. Charlie Munger: Well, I think all stocks can fluctuate. I call it deworsificationwhich I copied from somebody. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. To meet the surge in Rick was always humorous. 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? Thanks u/Arceus122. Its too volatile to serve well as a medium of exchange. Charlie Munger: Its partly culture but a lot of it is just born in and its a quirk. Charlie Munger: Well, the business around here that has the most promise is our software business automating the courts. But, a very wise man said on an earlier occasion: The trouble with banking is that we have more banks than we have bankers. Commission-free trading is not free. And, we hope to do well in it. Question: Do you believe the market is going through a long-term value slump similar to 1999, or do you believe technology has caused a permanent change in how companies should be valued? He absolutely took over a malarial swamp and turned it into modern Singaporein his own lifetime. What would be a mistake at the Daily Journal which we can all learn from? Its a funny way to make money. And so, the stock went way up. Question: In your past speeches, you have mentioned the term functional equivalent of embezzlement to describe situations where bubbles can form because both parties involved in a bubble believe the asset to be worth more than it truly is. I do think banking run intelligently is a very good business. But Henry was a genius. He gasped and said, but hes never had anything to do with newspapers or anything else. A lot of the good rules of life are like that. So human greed and the aggression of the brokerage community create these bubbles from time to time. The most important decision in life to benefit those who are single, perhaps including some of your grandchildren and great-grandchildren. And we probably have more of those shortcuts than others. Any tips on how to generate insight in these types of situations? Everybody has shortcuts to screen out certain hazards. And I think both of us have done the same thing; we just suck it in and cope. Of course, its hard to negotiate in such a field. Of course, its hard to know what the future holds when in a complex system where you cant predict a lot of things. The meeting will come to order. Charlie Munger: Early 70s. Daily Journal 13F filings and top holdings and stakes - stockzoa Creating 360 value. Question: It seems likely that the current Fed policy of keeping interest rates near zero will only exacerbate the income disparity in this country by benefiting those who own the financial assets. Can U.S. Treasury bonds be such a case today? I think the bankers of today could learn a lot from Eugene, but little is known of him. When you pay for order flow, youre probably charging your customers more and pretending to be free. And they dont just keep everlastingly at it the way he did. 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. We focused and de-risked the company through strategic portfolio actions, significantly accelerated our debt reduction, At about the same time, we bought a newspaper in Phoenix and that worked out extremely well. And I dont think that we or the Daily Journal is getting ahead because weve got some wonderful macroeconomic insight. shareholder letters %PDF-1.3 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. And what did the Chinese communists do with respect to death taxes? So, the people part has changed quite considerably being a small company. I think theyre a bad investment when interest rates are this low. So, you can understand why Warren got disenchanted with Wells Fargo. I have a very simple idea on the subject. endobj Thats the nature of capitalism. At the age of 97, Charlie Munger wasnot surprisinglysharp as a tack. And he was a great kidder. I own some apartment houses, so I like that investment, provided youve got a perfect management which is hard to get. Charlie Munger: Its hard to know what exact macroeconomic policy is correct. Im pretty easy on myself these days. It wasnt some malevolence of the rich that caused it. When people gave me a good idea and I could see it was a good idea, I quickly mastered it and started using it for the rest of my life. So, Im kind of pleased that Im still functioning at all. Question: Do you believe the valuations for electric car manufacturers are in bubble territory? Question: Which do you think is crazier? But theres no rule that life has to be easy on the mental side. Daily Active Users (DAUs) totaled 53.3 million in June 2022, year versus 3.571 billion hours in May, up 10% over May 2021. But you know, most people dont do that. 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. But I do think having a whole system to sell hydrogen is difficult. 1 0 obj They do way more good than harm. I dont know the answer. But the Chinese have proved that you dont need free speech to have a wonderful economy. But I do think politics is getting more full of hatred and irrationality than it used to be in America and I dont think thats good. Watch Charlie Munger speak at the Daily Journal annual meeting 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. Ive been around for a long time and my policy has always been to just write them out. Charlie Munger: Well, I have the same difficulty that Samuel Johnson once had when he got a similar question.

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