Guest ajc Posted July 24, 2013 Share Posted July 24, 2013 You guys helped bring attention to Charlie's investment acumen. There is an article on him today on Bloomberg: http://www.bloomberg.com/news/2013-07-24/munger-triples-publisher-s-value-with-panic-era-wager-on-stocks.html I really hope that's not the case and that it's just a coincidence. Usually I wouldn't mind in the slightest that every Bloomberg reader got information about any of the great ideas on here, but this stock is so thinly traded I think I'd have much preferred if that story never got printed. Ah well, hopefully it gets bumped down in a couple hours time and whoever read it starts thinking about the next bunch of shiny objects they see... (Damn you Sanjeev for putting together such a widely-read and successful forum! *shakes fist angrily in the general direction of Canada*) Link to comment Share on other sites More sharing options...
brker_guy Posted July 24, 2013 Share Posted July 24, 2013 I remember when I first went to the DJCO's annual meeting, there was only 15 of us in a tiny conference room, and we would get Charlie all to ourselves for 2 solid hours. Next year, it will be a zoo, thanks to Sanjeev and this forum, not to mention the aforementioned Bloomberg article. ;-) Link to comment Share on other sites More sharing options...
Palantir Posted July 24, 2013 Share Posted July 24, 2013 Sigh...sold too early. I hate myself. Link to comment Share on other sites More sharing options...
Guest ajc Posted July 24, 2013 Share Posted July 24, 2013 I remember when I first went to the DJCO's annual meeting, there was only 15 of us in a tiny conference room, and we would get Charlie all to ourselves for 2 solid hours. Next year, it will be a zoo, thanks to Sanjeev and this forum, not to mention the aforementioned Bloomberg article. ;-) I'm glad at least one of us is enjoying this. I'll be going back to slowly bashing my head against the desk and insulting myself now... Link to comment Share on other sites More sharing options...
txlaw Posted July 24, 2013 Share Posted July 24, 2013 I remember when I first went to the DJCO's annual meeting, there was only 15 of us in a tiny conference room, and we would get Charlie all to ourselves for 2 solid hours. Next year, it will be a zoo, thanks to Sanjeev and this forum, not to mention the aforementioned Bloomberg article. ;-) I'm glad I went this year! Probably won't go next year now. Link to comment Share on other sites More sharing options...
Guest ajc Posted July 24, 2013 Share Posted July 24, 2013 Are you guys concerned with succession for this company at all? We talk about Buffett's age and succession issues but he is 82. Munger is a lot older at 89. Just my 2 cents worth, but I think the succession issue here and at Berkshire might be somewhat overblown (and most likely a chance to add) which is why I think DJCO could be a compelling opportunity. Basically, alot of folks (for obvious and natural reasons) are concerned that as Warren and Charlie get older the businesses they're most attached to lose x amount of value as soon as they bite the dust. My take on this is that essentially that won't happen (at least for years and years). Firstly, succession is of huge importance at Berkshire and this has been repeated a million times but still the media aren't happy until they get a bloody piece of meat thrown in front of them and so the story that mostly gets written is one of confusion, secrecy, blah, blah, blah just like you'd expect from a bunch of speculators in any market. I'm of the opinion that Warren and Charlie spend more time thinking about succession than any other two executives in America and yet they get pretty much zero credit for it. If you stop to consider it for a minute, here are two of the brainiest, hardest-working, most trustworthy and patient guys in business who have primarily studied risk/reward scenarios for their entire professional careers and yet we're supposed to take the word of someone who works on television or for the print media and has never owned or run a business in their lives over Warren and Charlie in regards to what arrangement will be best when it comes to succession. Seriously? Look at any of their children who are really the ultimate example of succession. Any addicts, fiscaholics, losers or idiots? Not a single one that I know of. Yet still, Joe or Joanne Smith at XYZ paper or the UVW television show knows best. All I'm saying is I don't buy it for a second. Anyone who reads what Warren and Charlie have to say about succession can see that they think about it and care about it more than anyone in the world and so to me the rest of the noise is just a bunch of completely tedious media-circus nonsense that bears no relation to the reality, basic capital allocation methodology and operating processes of the business itself. In terms of specifics - I reckon folks need to seperate their thoughts on Warren and Charlie in terms of their age and abilities, from their ideas on the size of Berkshire and it's future growth potential. If Warren started making investment decisions for a new 100 million dollar publicly-traded company that he owned tomorrow and said he was only buying businesses on a 5 to 10 year timeframe who would be crazy enough not to invest with Buffett and a whole universe of securities to choose from? I mean, damn! Here he is with money to cover any medical issue so say he has a decade left and really it would be like he was almost starting from scratch but with all the experience and knowledge that he has acquired over his lifetime. Plus, how likely is it that the stocks he chose with a 5 to 10 year horizon when he hypothetically reaches 91 would be crappy? To me, you get 10 great years when he's alive and say another 5 (maybe even 7 or so) really good ones when he's dead - as the portfolio hasn't yet already been too drastically restructured by his replacement - while those final investments begin to deliver their true intrinsic value. In my opinion, that is exactly what you have with the Daily Journal Corporation. 2/3rds of the original Buffett, Munger and Guerin investment team and Charlie (if we're being frank in our estimates) has 5 years left while Rick has 10 and so say for the next 10-15 years you have a small cap company with the stock portfolio and returns of one or two of the best investment officers you could ever hope for and it's doesn't seem to be selling at some crazy premium by any reasonable measure. Add to that the possibility that Charlie might recommend or be asked to recommend a successor (Li Lu or some other competent individual would at least consider that role, I would suggest, as a mark of personal respect and/or honor) and that Charlie tends to be a more long-term buy and sit on your ass-type of investor than Warren maybe and there are a number of scenarios which could keep things going even beyond that 10-15 year point. Otherwise, they could sell to Berkshire or wind-up or anything, but I for one highly doubt that DJCO will somehow fall apart (or start a huge restructuring or do a 180 on the investment portfolio) the day Charlie or Rick or Gerald dies simply because we know these guys are always thinking about the long-term and their families and their integrity and that it's very likely their chosen successors will be doing exactly the same thing too (even if for the media it's just one more chance to get the next disposable and completely sensationalist soundbyte). Anyway, those are my thoughts. They could be incorrect, but in the end I think it's more likely that in terms of culture, investment policy and succession they'll turn out to be roughly right. Link to comment Share on other sites More sharing options...
LC Posted July 24, 2013 Share Posted July 24, 2013 If succession is such a concern to shareholders, why not look at Warren's personal life. How much is he leaving to his children, again? Versus how much he is donating? The man is such a stand-up human being, I would take his trust and advice over any person who has ever been employed by CNBC (and there are some very good, ethical people over at CNBC!). Just my two cents. Link to comment Share on other sites More sharing options...
fareastwarriors Posted July 24, 2013 Share Posted July 24, 2013 Thanks for your perspective, ajc, and others as well. Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 25, 2013 Share Posted July 25, 2013 Another article from today about the DJCO... Warren Buffett sidekick Munger creates a mini-Berkshire at Daily Journal 2013-07-24 http://blogs.marketwatch.com/thetell/2013/07/24/warren-buffett-sidekick-munger-creates-a-mini-berkshire-at-daily-journal/ Anyway,... I just wonder,... there is a similar small undiscovered type of DJCO gem in Canada. Well,... I would actually call it, a miniature baby-type of Fairfax,... the company owners have high integrity and here at the board it was mentioned only once. They are totally reclusive and shun the public light,... the company owners aren't interested in any publicity, so are the very few board members here that know them. Link to comment Share on other sites More sharing options...
JBird Posted August 8, 2013 Share Posted August 8, 2013 Nearly upchucked when I checked the price today. If the investment portfolio is being valued at 100 cents on the dollar, the operating business, which earned $5.5 million last year, is valued at $100 million. Link to comment Share on other sites More sharing options...
brker_guy Posted August 8, 2013 Share Posted August 8, 2013 Isn't Charlie Munger amazing? While we all are fawning over Buffett all these years, Charlie is quietly rebuilding another mini Berkshire. We all should have kept quiet about DJCO and not let the golden goose out of the bag. Now, the whole freaking world knows about it. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 8, 2013 Share Posted August 8, 2013 Isn't Charlie Munger amazing? While we all are fawning over Buffett all these years, Charlie is quietly rebuilding another mini Berkshire. We all should have kept quiet about DJCO and not let the golden goose out of the bag. Now, the whole freaking world knows about it. Well lots of people knew about Berkshire but still didn't jump on it anyways...(like myself!) Link to comment Share on other sites More sharing options...
crastogi Posted August 8, 2013 Share Posted August 8, 2013 Well, what do the knowledgeable members estimate the fair value of DJCO. I bought it around 70 in jan 12, up a lot since. Link to comment Share on other sites More sharing options...
JBird Posted August 8, 2013 Share Posted August 8, 2013 $100 million is a full valuation for a publishing business earning $5.5 million. In my view it's no longer undervalued. Link to comment Share on other sites More sharing options...
bennycx Posted August 8, 2013 Share Posted August 8, 2013 Just buy Wells Fargo ^^ Link to comment Share on other sites More sharing options...
crastogi Posted August 10, 2013 Share Posted August 10, 2013 thanks all! Link to comment Share on other sites More sharing options...
Guest ajc Posted August 23, 2013 Share Posted August 23, 2013 Fun article from Dealbreaker (also about Charlie and the SEC): The SEC Thought Charlie Munger Was Hiding A Hedge Fund In Some Newspapers "Here’s a neat little story from Bloomberg: Charlie Munger, Warren Buffett’s long-time right-hand man at Berkshire Hathaway, moonlights as the chairman of the board of a wee newspaper company called Daily Journal. Daily Journal owns a collection of newspapers so dull that they “specializ[e] in public notice advertising,” particularly notices of foreclosure sales. It also owns $128 million in marketable securities, virtually all of it ($121mm) in common stocks. This is noteworthy because, one, Charlie Munger is the one picking the stocks, and two, Daily Journal’s total book assets are only $173.8mm, its book equity is $106mm, and its market cap is around $190mm. For every dollar you invest in Daily Journal, you’re getting around 33 cents of foreclosure notices and 67 cents of Charlie Munger’s stock-picking. Charlie Munger’s stock-picking: pretty good, as it happens, and in any case a commodity that some people desire..." http://dealbreaker.com/2013/08/the-sec-thought-charlie-munger-was-hiding-a-hedge-fund-in-some-newspapers/ Link to comment Share on other sites More sharing options...
wisdom Posted December 16, 2013 Share Posted December 16, 2013 http://www.bloomberg.com/news/2013-12-16/munger-s-daily-journal-missessec-deadline-after-rally.html Link to comment Share on other sites More sharing options...
racemize Posted February 11, 2014 Share Posted February 11, 2014 13-F: http://www.sec.gov/Archives/edgar/data/783412/000143774914001834/xslForm13F_X01/rdgit012814.xml where I found it was posted: http://www.rationalwalk.com/?p=13517 Link to comment Share on other sites More sharing options...
LC Posted February 11, 2014 Share Posted February 11, 2014 Curious that there is no Costco in this portfolio. Link to comment Share on other sites More sharing options...
Grenville Posted February 11, 2014 Share Posted February 11, 2014 Curious that there is no Costco in this portfolio. My guess is that Munger doesn't think Costco is cheap. Munger talks very highly of the company and is on the board. He owns shares that he received from being on the board. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 11, 2014 Share Posted February 11, 2014 13-F: http://www.sec.gov/Archives/edgar/data/783412/000143774914001834/xslForm13F_X01/rdgit012814.xml where I found it was posted: http://www.rationalwalk.com/?p=13517 sweet, good find. US banks for the win! Link to comment Share on other sites More sharing options...
brker_guy Posted February 11, 2014 Share Posted February 11, 2014 Great digging Racemize and thanks for sharing! Link to comment Share on other sites More sharing options...
JBird Posted February 11, 2014 Share Posted February 11, 2014 Well done Race, thanks. Link to comment Share on other sites More sharing options...
dutchman Posted February 11, 2014 Share Posted February 11, 2014 love that he loves bofa! thought he might've preferred jpm. thanks. Link to comment Share on other sites More sharing options...
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