Thats our system. What are the psychological implications of this type of market behavior? I do think banking run intelligently is a very good business. So, the people part has changed quite considerably being a small company. What would be a mistake at the Daily Journal which we can all learn from? I think that inequality is absolutely an inevitable consequence of having the policies that make a nation grow richer and richer and elevate the poor. Theyre just very simple. They really need the world to stay the way it is. And when the evidence came in that the system wasnt working very well because some of the employees were cheating some of the customers, they came down hard on the customers instead of changing the system. In 2020 and 2021, enormous QE approximately $4.4 trillion, or 18%, of 2021 gross domestic product (GDP) and enormous fiscal stimulus (which We admire the company and like its position. The votes in favor of that are 995,356 against 120. And I was like Rip Van Winkle; when I tried to come back to it, I found that the world had changed. What do you think the long-term consequences will be? They have created a strong culture of fanaticism about cost, quality, efficiency, and honor. Given the developments over the past year, could you give us an update on your assessment of wretched excess in the system? We discuss the company Berkshire Hathaway and the economic context in which it operates. In other words, when we shout our knowledge out, were really pounding it out. There are these periods in capitalism. Lane Hickenbottom/Reuters Warren Buffett's longtime business partner called out a So you now know what I do in charitable institutions. Culture is very important. Cookie Notice I think its just to some extent you either have it or you dont. Could you share the secret to living a long, healthy, and happy life? Well, I dont think the quality of publishing public notice advertising has gone down. WebDaily Journal Meeting Transcript 2021 fs.blog Page 1 of 32 Julia La Roche: Hello and welcome. But he previously worked for Rick Guerin and me in running a little mutual fund that we bought control of. Charlie Munger: Well, of course, its very hard to fix the global warming problem when the poorer countries need to burn coal to stay alive and so on. On the other hand, the buses in Los Angeles work on natural gas. We focused and de-risked the company through strategic portfolio actions, significantly accelerated our debt reduction, Of course, people behave more sensibly when theyre spending their own money. International stock quotes are delayed as per exchange requirements. A 2003 examination of what makes Berkshire Hathaway's subordinate CEOs successful. In the past few years, equity prices have increased significantly and cash has arguably become riskier due to central banking policy. We cant promise what the outcome will be but we are trying pretty hard and we get some favorable impressions of progress. Some people think that value investing is you chase companies that have a lot of cash and theyre in a lousy business or something. Look around all this real estate. And thats the right way to do it. Theres no question about the fact that Wells Fargo has disappointed long-term investors like Berkshire because the old managementwhich is now removedwere not consciously malevolent or thieving but they had terrible judgment in having a culture of cross-selling where the incentives on the poorly paid employees were too great to sell stuff that customers didnt really need. Charlie Munger: I think Im alive because of a lucky genetic accident. Reddit and its partners use cookies and similar technologies to provide you with a better experience. His method for doing it was so simple. Charlie Munger: I dont think I use much physics in solving my investment problems but it occasionally helps me. And, of course, when things get extreme you have things like that short squeeze. 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. The best venture capital operation probably in the whole world is Sequoias and they are very good at this early stage investing. 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. So, Im kind of pleased that Im still functioning at all. That happened because Gerry and I bought these little newspapers all over the state just as a precaution to make sure we could serve public notice advertising wherever it arose in the state. Copyright 2023 Surperformance. So we have one basic system configured in a number of different ways, including workers comp for a large state in the United States. I think the world is gonna be quite different. I think the Chinese were very smart. Would you mind elaborating on how a professor or individual should go about building a curriculum around this approach? By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. And by the way, I think its hard to teach. Nobody else has ever taken a big country out of poverty so fast and so on. Daily Journal Corp : Submission of Matters to a Vote of Security Holders (form 8-K) AQ. It was a background that helped everybody. Its just not gonna work. He was just a very old-fashioned sound thinker. Charlie Munger: I would go further. I think they stopped because if you taught that course, youd be stealing the best cases from the individual professors of marketing and so on and so on. You know what her mottoes were? Put me down as skeptical. The death tax in China is zero. I never buy any and neither does Daily Journal. Commission-free trading is not free. Charlie Munger: Well, it certainly does and thats the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would betting on horses. Theyve got a better reputation for providing value than practically anybody, including Amazon. And thats what we have going in the stock market in a frenzy thats fed by people who are getting commissions and other revenues out of this new bunch of gamblers. And its a shame that the economics textbooks dont emphasize how much a growing economy needs poverty in order to get out of poverty. What do you make of these two pricings? I have a very simple idea on the subject. Youd say that everybody does that in their education but I dont think everybody does. Im pretty easy on myself these days. He really knew everything you had to do to avoid credit losses in a small town in Illinois. Question: Many believe that inequality accelerated by this pandemic has reached alarming levels that demand drastic solutions such as a wealth tax. It seems to involve a lot of your standard causes of human misjudgment. Our editorial system and our advertising system are all in the cloud. All except for the legal advertising system which we had to build because nobody else has the volume that we have. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Dear shareholders: Over the past 25 years at Amazon, Ive had the Everybody has shortcuts to screen out certain hazards. Gerald Salzman: Well, we dont think about mistakes. Charlie Munger: 2022 Daily Journal Annual Meeting Transcript Charlie Munger: Yes, I think that is rising as we sit here. And we pay huge taxes to a combination of the federal government and the state of California when we sell something. In fact, what a lot of shareholders actually do is crowd in buying stocks on frenzyfrequently on creditbecause they see that theyre going up. The second proposal is to ratify the appointment of our certified public accountant: Baker Tilly US, LLP. And, of course, its all worked. In 2010, that was down to 165 full-time employees and 15 part-time employees. I dont think we have made a lot of horrible mistakes. Im not trying to move mountains. Daily Journal 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. If anybody can fix it, he can. 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. Im Charlie Munger, Chairman, and to my right is Jerry Salzman, CEO. Could you please elaborate on the subject and could you consider giving a talk on this particular subject?