maxthetrade Posted February 10, 2012 Share Posted February 10, 2012 http://www.bloomberg.com/news/2012-02-10/munger-s-daily-journal-broadens-investment-portfolio-with-a-sixth-holding.html?cmpid=yhoo I wouldn't be surprised if he bought BAC. Would fit the pattern of his WFC buy. Link to comment Share on other sites More sharing options...
hardincap Posted February 18, 2012 Share Posted February 18, 2012 I'm going to guess it was BAC. Anyone know? Link to comment Share on other sites More sharing options...
tombgrt Posted February 18, 2012 Share Posted February 18, 2012 Does anyone know more about DJCO? Portfolio of securities is probably worth somewhere around $80m now, earnings seem reasonably stable and market cap is only $102m. How about it's chairman, J.P. Guerin? I'm going to look into it asap. Link to comment Share on other sites More sharing options...
zippy1 Posted February 19, 2012 Share Posted February 19, 2012 Is J.P. Guerin related to Rick Guerin of the Pacific partners in any way? I remembered seeing an article on Forbes years ago about J.P Guerin investing money in movie industry... http://www.forbes.com/forbes/2000/0612/6514414a.html Link to comment Share on other sites More sharing options...
Tim Eriksen Posted February 19, 2012 Share Posted February 19, 2012 Does anyone know more about DJCO? Portfolio of securities is probably worth somewhere around $80m now, earnings seem reasonably stable and market cap is only $102m. How about it's chairman, J.P. Guerin? I'm going to look into it asap. The operating business of DJCO is in decline. Other than the temporary revenue spike in 2008-2010 due to the real estate crash increasing public notices, revenue is the same as ten years ago. What is impressive is management's ability to reduce costs. Operating income has gone from $1 to $2 million to $10 million in 2011. EPS is above $5 per share. From what I have read. Holding #1 is WFC at about $44 million. Holding #2 is USB at $3.6 million. Holdings 3&4 are foreign companies that combined are valued at just under $1 million. Holding #6 is the unknown addition in Q4 of 2011 at $13.6 million. I hope it is BAC based on how it has performed recently, but who knows. J P "Rick" Guerin is profiled in Buffett's article "The Superinvestors of Graham-and-Doddsville" in Table 6. He is mentioned quite frequently in Janet Lowe's book on Munger titled, "Damn Right." Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted February 19, 2012 Share Posted February 19, 2012 Only a twenty five percent PREMIUM for inheriting the portfolio artwork of an ORIGINAL Superinvestor of Graham--and--Doddsville? I could see Charlie "kicking up" his "compounding machine" before he leaves us on his journey! Charlie is not working from a $200B base, you know! ;D Link to comment Share on other sites More sharing options...
Ben Graham Posted February 19, 2012 Share Posted February 19, 2012 Long-time students of Charlie Munger are quite aware of Wesco (WSC), which Charlie has been Chairman of for some years. However, the Daily Journal Corporation (DJCO), while smaller, is perhaps the fullest public expression of Charlie Munger's business creativity. According to the DJCO's latest proxy statement, Munger, Marshall & Co control 41.1% of the company's stock. Mr. Munger and Mr. Marshall are the sole general partners of the Munger, Marshall & Co partnership. http://www.gurufocus.com/news/78840/charlie-munger-and-the-daily-journal-corporation J.P. Guerin Vice Chairman of the Board Daily Journal Corporation Los Angeles , CA Sector: SERVICES / Publishing - Newspapers Mr. Guerin is a private investor. Qualifications and Skills: Mr. Guerin has approximately 50 years of experience in business, working with both private and public companies. During that time, he has served on more than 20 boards of directors. Mr. J. P. Guerin has been the Vice-Chairman and a Director of Daily Journal Corp. since 1977. Mr. Guerin has been Vice Chairman of PS Group (alternate name is PS Group Holdings Inc.) since 1997 and also its Director since January 30, 1996. Previously, he served as Chairman of PS Group Inc. ("PSG") Board of Directors from 1985 to 1991 and also as its Vice Chairman from 1991 to 1993. Prior to retiring in 2002, Mr. Guerin served as a Director of Lee Enterprises Incorporated, a company owning newspapers. He served as a Director of PSG from 1978 to the 1996 Reorganization was consummated. * * * Link to comment Share on other sites More sharing options...
Guest Hester Posted February 19, 2012 Share Posted February 19, 2012 If DJCO spun off their investment portfolio into a CEF, managed by Munger, with no fees like now, what are the odds it would trade at NAV? What would you pay for the privilege of having Munger invest your money for you, for free? This won't happen in a million years, nor should it, but they could if they wanted to. And it's interesting to think about when valuing... Link to comment Share on other sites More sharing options...
Ben Graham Posted February 19, 2012 Share Posted February 19, 2012 If DJCO spun off their investment portfolio into a CEF, managed by Munger, with no fees like now, what are the odds it would trade at NAV? What would you pay for the privilege of having Munger invest your money for you, for free? This won't happen in a million years, nor should it, but they could if they wanted to. And it's interesting to think about when valuing... Smith Affiliated Capital and Allianz Global Investors ( The top Institutional & top Mutual Fund Holders ) at Central Fund of Canada Ltd( CEF :AMEX), would welcome Munger's Daily Journal with open arms. But like you said it will never happen. Dream on - very nice idea. The love of Value makes one conjure up all sorts of images & ideas. Link to comment Share on other sites More sharing options...
twacowfca Posted February 19, 2012 Share Posted February 19, 2012 I'm going to guess it was BAC. Anyone know? BRK. :) Link to comment Share on other sites More sharing options...
Ben Graham Posted February 19, 2012 Share Posted February 19, 2012 If DJCO spun off their investment portfolio into a CEF, managed by Munger, with no fees like now, what are the odds it would trade at NAV? What would you pay for the privilege of having Munger invest your money for you, for free? This won't happen in a million years, nor should it, but they could if they wanted to. And it's interesting to think about when valuing... Smith Affiliated Capital and Allianz Global Investors ( The top Institutional & top Mutual Fund Holders ) at Central Fund of Canada Ltd( CEF :AMEX), would welcome Munger's Daily Journal with open arms. But like you said it will never happen. Dream on - very nice idea. The love of Value makes one conjure up all sorts of images & ideas. Hester, I believe strongly in the value of your professional investment advice. The more I think about it, maybe you are on to something about; "If DJCO spun off their investment portfolio into a CEF, managed by Munger" Or, Central Fund of Canada Ltd( CEF :AMEX largest institutional holder - Allianz Global Investors Allianz Global Investors is a global asset management group committed to helping clients achieve sustainable success. We draw on the intellectual capital of our diverse family of investment managers—each with their own distinctive philosophy and culture—to provide clients with a choice of innovative investment solutions, including mutual funds, managed accounts, closed-end funds, 529 plans and retirement offerings. We are part of the Allianz Group, one of the world’s leading integrated financial services providers. Their range of investment products includes: Mutual Funds Closed-End Funds Managed Accounts Link to comment Share on other sites More sharing options...
hardincap Posted February 19, 2012 Share Posted February 19, 2012 I'm going to guess it was BAC. Anyone know? BRK. :) actually that probably makes more sense. switching my answer to brk now :) Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted February 19, 2012 Share Posted February 19, 2012 Does Mr. Munger like to eat his own cooking fresh from the ocean's BOTTOM? My good friend, Brker_guy, thinks BYD. Seems plausible to me! ;D Link to comment Share on other sites More sharing options...
wabuffo Posted February 19, 2012 Share Posted February 19, 2012 Holdings 3&4 are foreign companies that combined are valued at just under $1 million. I doubt it since Munger spent $11.1m buying them. ;D wabuffo Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted February 19, 2012 Share Posted February 19, 2012 Thanks. Sorry to have spoken for Brker_guy, because initially he called out BAC during his travels. BYD could not be the one, at least for now. I'll go with BRK.B, since Charlie would have had to have done a 180 degree turnaround while having lambasted the BAC franchise less than eight months ago, in advance of WEB's preferred floor and seemingly correspondent "BAIL OUT!" ;) Then again, it is not unwise for a rational investor to change directions when circumstances change one way or the other. <Daily Journal bought common stock in “another Fortune 200 company” in the three months ended Dec. 31, the Los Angeles- based publisher said in a regulatory filing today.> Link to comment Share on other sites More sharing options...
Tim Eriksen Posted February 19, 2012 Share Posted February 19, 2012 Holdings 3&4 are foreign companies that combined are valued at just under $1 million. I doubt it since Munger spent $11.1m buying them. ;D wabuffo You are right. My bad. The foreign positions have performed poorly so far. They spent nearly $11 million in cost in early 2011 and ended with a value at calendar year end of approximately $7.4 million. Link to comment Share on other sites More sharing options...
Rabbitisrich Posted February 20, 2012 Share Posted February 20, 2012 Maybe DTV. Good capital management, operating results, modest valuation, and advantages in certain markets absent unexpected major infrastructure investments. Link to comment Share on other sites More sharing options...
CanadianMunger Posted February 20, 2012 Share Posted February 20, 2012 Why wouldn't it be IBM? IBM is by far (at cost) Berkshire's largest equity investment ever. Warren and Charlie must feel pretty good about its future prospects. Link to comment Share on other sites More sharing options...
Ben Graham Posted February 20, 2012 Share Posted February 20, 2012 Why wouldn't it be IBM? IBM is by far (at cost) Berkshire's largest equity investment ever. Warren and Charlie must feel pretty good about its future prospects. Maybe DTV. Good capital management, operating results, modest valuation, and advantages in certain markets absent unexpected major infrastructure investments. I think you both are thinking a head into the future with great ideas with IBM and DirecTV. I would go one step further and tie them together. Link to comment Share on other sites More sharing options...
rijk Posted February 25, 2012 Share Posted February 25, 2012 my vote is also for BRK regards rijk Link to comment Share on other sites More sharing options...
rmitz Posted February 26, 2012 Share Posted February 26, 2012 my vote is also for BRK regards rijk I rather doubt it given the problems they had with the cross-holdings back in the day with the SEC. They wouldn't want to go down that road again. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted May 11, 2012 Share Posted May 11, 2012 10-Q is out and by my math it seems clear that newest holding is BAC. DJCO is up to $82 and has $60 of cash and investments, net of deferred taxes. First half of fiscal 2012 earnings per share of $2.72. Four times earnings net of cash and investments. If the US lowers corporate tax rates to 25% in the near future that would not only improve earnings it would reduce the deferred taxes amount. Double benefit. Link to comment Share on other sites More sharing options...
Grenville Posted May 11, 2012 Share Posted May 11, 2012 10-Q is out and by my math it seems clear that newest holding is BAC. DJCO is up to $82 and has $60 of cash and investments, net of deferred taxes. First half of fiscal 2012 earnings per share of $2.72. Four times earnings net of cash and investments. If the US lowers corporate tax rates to 25% in the near future that would not only improve earnings it would reduce the deferred taxes amount. Double benefit. Thanks for the update, interesting to see a sixth holding. Munger has spoke positively about BAC. Link to comment Share on other sites More sharing options...
brker_guy Posted May 11, 2012 Share Posted May 11, 2012 It's like watching Genius at work... Back in 2008, DJCO had only $21MIL in holdings. Today, it's nearly $100MIL. Amazing! Link to comment Share on other sites More sharing options...
netnet Posted May 11, 2012 Share Posted May 11, 2012 It's like watching Genius at work... Back in 2008, DJCO had only $21MIL in holdings. Today, it's nearly $100MIL. Amazing! "...like"????? It iswatching a genius at work!! Link to comment Share on other sites More sharing options...
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