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DJCO - Daily Journal Corporation


Guest hellsten

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ECCO,

 

Charlie bought these bank positions back in 2009 time frame.  He bought most of his BYD positions in the summer of 2012.

 

I have been going to the DJCO annual meeting since 2009, and someone asked Charlie at the 2010 AGM as to how long it took him to decide to buy WFC, BAC and USB.  He quickly responded "2 seconds to come to that conclusion to those securities".  We were all guessing at that time that it was only WFC and BAC.  We are correct now, but I am glad to see he also bought USB.

 

Since he has added Posco into DJCO's holdings, you can take a guess as who helped Warren bought the Posco stake in the Berkshire portfolio a few years ago.  Charlie's influence on Warren mental model is pretty deep.

 

brker_guy

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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. ;-)

 

Are there any notes available other than the 2013 one?  Not finding any online.  I'd like to add it to my Munger compilation.

 

And I'll once again request for anyone who's got the Munger partnership letters, it's one of the only things I'm missing...

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The Munger premium?

 

Hence my comment about hedging, the portfolio is disclosed (or nearly completely disclosed)... not clear to me why a transparent portfolio that you can copy would trade for such a premium. (certainly some premium could exist)

 

But again, it has for a while.

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Guest notorious546
Risks Associated with Our Holdings of Marketable Securities

 

A large portion of the Company’s assets is held in publicly traded securities, and the prices of those securities may decline.

 

As of September 30, 2015, the Company held marketable securities worth approximately $166,041,000, with an unrealized gain for financial statement purposes of $111,498,000. While this portfolio has enabled the Company to borrow on very favorable terms for the New Dawn and ISD acquisitions and to better compete for case management software opportunities that are usually limited to “large” firms, it is unusual for a public company to invest a significant amount of its available cash in the marketable securities of other public companies. The value of these securities could decline, which would adversely affect shareholders’ equity.

 

Also, as of September 30, 2015, the Company’s holdings of marketable securities were concentrated in just seven companies and included two based in foreign currencies. Accordingly, a significant decline in the market value and unfavorable changes in the foreign exchange rates of one or more of the Company’s holdings may not be offset by hypothetically better performance of other holdings. This concentration of risk may result in a more pronounced effect on shareholders’ equity.

 

http://www.sec.gov/Archives/edgar/data/783412/000143774915022202/0001437749-15-022202-index.htm

 

We know munger holds BAC, USB, WFC, PKX. What are the remaining three?

 

 

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one of the securities is the bonds of a US company purchased in 2009, the other two are foreign-issued equity securities (and, well there's this from the 10-K):

 

The fair value of the foreign marketable security held in South Korean Won was $8,694,000, and the adjusted cost was $10,977,000 as of September 30, 2015.... The fair value of the foreign marketable security held in Hong Kong Dollar was $26,355,000, and the adjusted cost was $9,697,000 as of September 30, 2015.

 

wabuffo

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From this year's 10-k

 

The Company holds foreign marketable securities based in South Korean Won and Hong Kong Dollar that are subject to risk associated with changes in the exchange rates of these currencies against the United States Dollar. The fair value of the foreign marketable security held in South Korean Won was $12,667,000 with an adjusted cost of $14,810,000 and $8,694,000 with an adjusted cost of $10,977,000 as of September 30, 2016 and 2015, respectively. The exchange rate of the South Korean Won against the United States Dollar was $0.00091 and $0.00084 at September 30, 2016 and 2015, respectively. The fair value of the foreign marketable security held in Hong Kong Dollar was $32,814,000 with an adjusted cost of $9,697,000 and $26,355,000 with an adjusted cost of $9,697,000 as of September 30, 2016 and 2015, respectively. The exchange rate of the Hong Kong Dollar against the United States Dollar was $0.12893 and $0.12903 at September 30, 2016 and 2015, respectively.

 

 

Anybody know what was the Korean stock purchased?

 

(The extra $3,833,000 Korean stock purchase between 1st Oct - 31st Dec 2015, with the corresponding values now at DJCO fiscal year end, shows it can't be Posco)

 

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