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. Always tell the truth and never lie to anybody about anything. You are on record as a zealous fan of the Chinese work ethic and Confucian value system. He cared terribly about not making bad loans or incurring dumb expenses. They wouldnt be a lot happier if they were richer or a lot less happy if theyd been poor. Charlie Munger: Early 70s. Think of whats died in my lifetime. Copyright 2023 Surperformance. I gave at the office is an unassailableassertion when made by Thats what weve been doing throughout my whole lifetime. Charlie Munger: Theres one thing that were quite passionate about and that is serving the customers who have trusted us. Shareholder Letters GM raises its 2023 earnings outlook | Automotive News Can you speak to the causes, the trend, and make some predictions? Charlie Munger: Well, I dont participate at all. WebThe U.S. economy is strong. 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? And you mentioned technologythats very, very important. Privacy Policy. Below is the Report's Letter to Shareholders from GE Chairman and CEO Larry Culp: Dear Fellow Shareholder, 2021 was a year of historic change for GE. And theyre all dyingevery damn one of them almost. We were trying to save the whole economy under terrible conditions. Charlie Munger: Its a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. Theyve got a better reputation for providing value than practically anybody, including Amazon. Beyond restaurants, consumers showed a growing interest in many of the newer categories on our Marketplace in 2021. 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. He had a long and wonderful run. Charlie Munger: I dont think so. And, for example, here, we must have 30 or 40 deaths. Theyve served us well over the years. 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. Look around all this real estate. Written by Andy Jassy, CEO at Amazon. That was a big error in judgment. 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. Charlie Munger: Thats too hard in general a question for me. Charlie Munger: Were really old both of us. Question: What is the biggest competitive threat to U.S. banks like Bank of America and US Bankboth equity holdings of the Daily Journal Corporationover the long term? And he was a great kidder. Value Investing will never go out of style. Warren Buffett is set to release his annual shareholder letter Saturday morning along with the conglomerates quarterly earnings. Charlie Munger: No, I would say that of course, theres some new material in misjudgment. Charlie Munger: I think I had the right temperament. Ive been around for a long time and my policy has always been to just write them out. Question: Mr. Munger recently raised the alarm about the level of money printing taking place. %PDF-1.3 But, I dont think Ive got a lot to contribute. A 2003 examination of what makes Berkshire Hathaway's subordinate CEOs successful. BYD stock did nothing for the first five years we held 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 word focuses Bezos and focuses the people that look to him for guidance. Interpretations of those facts will vary. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. How do you recognize a potential downfall in a company you hold/invest in? Hed been a receiver for a bank. Its too volatile to serve well as a medium of exchange. Question: Charlie, you are known as an advocate for learning from ones mistakes. We cant promise what the outcome will be but we are trying pretty hard and we get some favorable impressions of progress. Dimon, the banks chairman and CEO, laid out all of this and more in his annual letter to shareholders, released early Wednesday. Gerry has done magnificently well. 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. Question: Should there be a tax on buying stock now that Robinhood trades are free? What, for example, would you recommend as course materials? Question: Does management, in your opinion, have a moral responsibility to have their shares trade as close to fair value as possible? Of course, people behave more sensibly when theyre spending their own money. Question: Mr. Munger is a champion of Chinese stocks. Those are pretty good rules and theyre pretty simple. 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. 4 0 obj 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. 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? Bill Gates has written a book on this subject recently in which he concludes that it would be expensive but it could be handled. Charlie Munger: Well, I so rarely hold a company like BYD that goes to a nosebleed price that I dont think Ive got a system yet. If you have unrealistic expectations, youre going to be miserable all your life. 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. We miss Rick terribly. Because value investingthe way I conceive itis always wanting to get more value than you pay for when you buy a stock. And he said; I cant decide the order of presidency between a flee and a louse. Question: What is the wisdom behind holding bank stocks compared to other stocks. And, as Gerry has just said to me just after breakfast, you wouldnt want to invest in a parking lot by a courthouse for the future because an awful lot of the court proceedings are going to go to the internet. Thats an interesting example of self-learning. 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. 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. Charlie Munger downplays risk of Taiwan invasion, says Question: Youve spent much of your life contributing your wisdom to schools and hospitals. WebMunger's terse letter to Daily Journal shareholders. Charlie Munger: Well, Im constantly making mistakes where I can, in retrospect, realize that I should have decided differently. Question: What is the biggest lie currently being perpetuated by the investment complex? 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
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