kiwing100 Posted February 16, 2017 Share Posted February 16, 2017 FYI, looks like it was streamed live by CNBC.com - available to CNBC.com pro subscribers only. Full replay available later - not sure if free to all or only available to CNBC.com pro subscribers. http://www.cnbc.com/2017/02/15/watch-live-charlie-munger-speaks-at-the-daily-journal-annual-meeting.html NOTE: The live stream has now ended...check back shortly for a full replay of this exclusive event. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted February 16, 2017 Share Posted February 16, 2017 DJCO Annual Meetings: 2015: 2016: https://www.youtube.com/watch?v=D-mcbdKpnIg 2017: Link to comment Share on other sites More sharing options...
dcollon Posted February 16, 2017 Share Posted February 16, 2017 Thanks very much Schwab Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 16, 2017 Share Posted February 16, 2017 Thanks very much Schwab +1 Much appreciated Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 16, 2017 Share Posted February 16, 2017 The highlight of this was Munger sharing his 3 position portfolio. BRK, Costco and Li Liu(spelling). 'The probability of ALL of them going to zero is zero' Link to comment Share on other sites More sharing options...
Guest notorious546 Posted February 17, 2017 Share Posted February 17, 2017 what were the books or documents he gave to everyone who attended? Link to comment Share on other sites More sharing options...
kiwing100 Posted February 17, 2017 Author Share Posted February 17, 2017 Thank you Schwab711 for sharing the links. Link to comment Share on other sites More sharing options...
Poor Charlie Posted February 17, 2017 Share Posted February 17, 2017 what were the books or documents he gave to everyone who attended? See link for handout: https://www.dropbox.com/s/tfwhsgo6n45iasv/DJCO%202017.pdf?dl=0 Also, I came in late and wasn't able to grab the annual report. If someone has it, would you mind posting Munger's Chairman's Letter? Thanks. Link to comment Share on other sites More sharing options...
kiwing100 Posted February 17, 2017 Author Share Posted February 17, 2017 what were the books or documents he gave to everyone who attended? See link for handout: https://www.dropbox.com/s/tfwhsgo6n45iasv/DJCO%202017.pdf?dl=0 Also, I came in late and wasn't able to grab the annual report. If someone has it, would you mind posting Munger's Chairman's Letter? Thanks. Poor Charlie, Thank you for posting the link to the document. Link to comment Share on other sites More sharing options...
Grenville Posted February 17, 2017 Share Posted February 17, 2017 Also, I came in late and wasn't able to grab the annual report. If someone has it, would you mind posting Munger's Chairman's Letter? Thanks. http://proxy.dailyjournal.com/Fileserver/DJICText/DJCO_Proxy/DJAnnualReport2016.pdf Link to comment Share on other sites More sharing options...
Liberty Posted February 17, 2017 Share Posted February 17, 2017 Transcript/notes of the meeting by Adam Blum (posted on Twitter by Pabrai): https://www.dropbox.com/s/rp9ardwn6ywgwjp/February%2015%2C%202017%20-%20Adam%20Blum_s%20Daily%20Journal%20Annual%20Meeting%20Notes.pdf?dl=0 Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 18, 2017 Share Posted February 18, 2017 Munger's response to a question on the rise of index funds; - Terrible problem for money managers; "Your generation of money managers will have it really hard; A little difficulty is not a bad thing" - Fees going down to "20 basis points" - that is something that needed to happen. Managers who got rich so far didn't get there by charging 20 bp. - For those who realize that they are unlikely to outperform, mental anguish is huge; Most cope by simple denial. Of course, I don't want to think of death either - Berkshire has beaten the index by making 2 decisions per year over 50 years. We didn't have a trillion dollars; nor did we have sub-groups; pharma etc. Link to comment Share on other sites More sharing options...
doughishere Posted February 18, 2017 Share Posted February 18, 2017 We bought Exxon as a cash substitute.... because we thought Exxon was better than cash over the short term. Link to comment Share on other sites More sharing options...
Charlie Posted February 18, 2017 Share Posted February 18, 2017 These notes look also good: http://latticeworkinvesting.com/2017/02/17/charlie-munger-full-transcript-of-daily-journal-annual-meeting-2017/ Cheers! Link to comment Share on other sites More sharing options...
Mephistopheles Posted February 18, 2017 Share Posted February 18, 2017 We bought Exxon as a cash substitute.... because we thought Exxon was better than cash over the short term. They should have just bought BRK as a cash substitute lol Link to comment Share on other sites More sharing options...
Charlie Posted February 19, 2017 Share Posted February 19, 2017 I like this part: :) "Am I comfortable with a non-diversified portfolio? Of course… if you take the Munger’s, I care about the Munger’s. The Munger’s have three stocks. We have a block of Berkshire, we have a block of Costco, we have a block of Li Lu’s fund, and the rest is dribs and drabs. So am I comfortable? Am I securely rich? You’re damn right I am. Could other people be just as comfortable as I who didn’t have a vast portfolio with a lot of names in it? Many of whom neither they or their advisors understand? Of course they’d be better off if they did what I did. And is three stocks enough? What are the chances that Costco’s going to fail? What are the chances that Berkshire Hathaway’s going to fail? What are the chances that Li Lu’s portfolio in China’s going to fail? The chances that any one of those things happening is almost zero. And the chances that all three of them are going to fail? That’s one of the good ideas I had when I was young. When I started investing my little piddly savings as a lawyer, I tried to figure out how much diversification I would need if I had a 10% advantage every year over stocks generally. I just worked it out. I didn’t have any formula, I just worked it out with my high school algebra. And I realized that if I was going to be there for thirty or forty years, I’d be about 99% sure to do just fine if I never owned more than three stocks and my average holding period is 3 or 4 years. Once I’d done that with my little pencil, I just… I never for a moment believed this boulderdash they keep… why diversification… diversification is a rule for those who don’t know anything. Warren calls them ‘know-nothing investors’. If you’re a ‘know-nothing investor’ of course you’re going to own the average. But if you’re not a know-nothing investor, if you’re actually capable of figuring out something that will work better, you’re just hurting yourselves looking for fifty when three will suffice. Hell one will suffice if you do it right. One. If you have one cinch, what else do you need in life. And so the whole idea that the ‘know-something’ investor needs a lot of diversification. To think that we’re paying these investors to teach this crap to our young. And people think they should be paid for telling us to diversify. Where it’s right, it’s an idiot decision. And where it’s wrong, you shouldn’t be teaching what’s wrong. What’s gone on in corporate finance teaching is that people are getting paid for dispensing boulderdash. And since I never believed that it was a great help to me, it helps if you’re out in the market and the other people are believing boulderdash and you know what the hell’s going on. It’s a big help. So of course you don’t want a lot… if you’re Uncle Horace who has no children has an immense business which is immensely secured and powerful. And he’s going to leave it all to you if you come to work in the business. You don’t need any diversification. You don’t need any corporate finance professors, you should go to work for Uncle Horace. It’s a cinch. You only need one cinch! And sometimes the market gives you the equivalent of an Uncle Horace. And when it does, step up to the pie-cart with a big pan. Pie carts like that don’t come very often. When they do you have to have the gumption and the determination to seize the opportunity shrewdly." Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 19, 2017 Share Posted February 19, 2017 I like this part: :) "Am I comfortable with a non-diversified portfolio? Of course… if you take the Munger’s, I care about the Munger’s. The Munger’s have three stocks. We have a block of Berkshire, we have a block of Costco, we have a block of Li Lu’s fund, and the rest is dribs and drabs. So am I comfortable? Am I securely rich? You’re damn right I am. Could other people be just as comfortable as I who didn’t have a vast portfolio with a lot of names in it? Many of whom neither they or their advisors understand? Of course they’d be better off if they did what I did. And is three stocks enough? What are the chances that Costco’s going to fail? What are the chances that Berkshire Hathaway’s going to fail? What are the chances that Li Lu’s portfolio in China’s going to fail? The chances that any one of those things happening is almost zero. And the chances that all three of them are going to fail? That’s one of the good ideas I had when I was young. When I started investing my little piddly savings as a lawyer, I tried to figure out how much diversification I would need if I had a 10% advantage every year over stocks generally. I just worked it out. I didn’t have any formula, I just worked it out with my high school algebra. And I realized that if I was going to be there for thirty or forty years, I’d be about 99% sure to do just fine if I never owned more than three stocks and my average holding period is 3 or 4 years. Once I’d done that with my little pencil, I just… I never for a moment believed this boulderdash they keep… why diversification… diversification is a rule for those who don’t know anything. Warren calls them ‘know-nothing investors’. If you’re a ‘know-nothing investor’ of course you’re going to own the average. But if you’re not a know-nothing investor, if you’re actually capable of figuring out something that will work better, you’re just hurting yourselves looking for fifty when three will suffice. Hell one will suffice if you do it right. One. If you have one cinch, what else do you need in life. And so the whole idea that the ‘know-something’ investor needs a lot of diversification. To think that we’re paying these investors to teach this crap to our young. And people think they should be paid for telling us to diversify. Where it’s right, it’s an idiot decision. And where it’s wrong, you shouldn’t be teaching what’s wrong. What’s gone on in corporate finance teaching is that people are getting paid for dispensing boulderdash. And since I never believed that it was a great help to me, it helps if you’re out in the market and the other people are believing boulderdash and you know what the hell’s going on. It’s a big help. So of course you don’t want a lot… if you’re Uncle Horace who has no children has an immense business which is immensely secured and powerful. And he’s going to leave it all to you if you come to work in the business. You don’t need any diversification. You don’t need any corporate finance professors, you should go to work for Uncle Horace. It’s a cinch. You only need one cinch! And sometimes the market gives you the equivalent of an Uncle Horace. And when it does, step up to the pie-cart with a big pan. Pie carts like that don’t come very often. When they do you have to have the gumption and the determination to seize the opportunity shrewdly." Yeah, but! Munger is not paying anyone to hold BRK or Costco. If you're a money manager and tell your client to hold 3 positions, for 30 years, how will you collect fees? Why terms like position sizing, sell-when-iv-reached etc. exist. Link to comment Share on other sites More sharing options...
Charlie Posted February 19, 2017 Share Posted February 19, 2017 Yeah, what in the end counts are the incentives of the decision maker. So be aware of (high) agency costs. We will hear more about it in 1-2 weeks in the Berkshire Hathaway annual letter. ;) Link to comment Share on other sites More sharing options...
Guest longinvestor Posted February 19, 2017 Share Posted February 19, 2017 Yeah, what in the end counts are the incentives of the decision maker. So be aware of (high) agency costs. We will hear more about it in 1-2 weeks in the Berkshire Hathaway annual letter. ;) I believe the letter will be posted online this coming Friday or Saturday AM (Feb 24 or 25) @ 8 AM! Link to comment Share on other sites More sharing options...
Jurgis Posted February 19, 2017 Share Posted February 19, 2017 Munger is being a bit disingenuous when he says that BRK, Costco and Li Lu's fund ::) is just three stocks... Clearly Li Lu's fund is not a single stock. And BRK is not really a single stock either ... hey it's more like a fund that has over 50 stock positions by now plus what 20+ operating businesses? It's almost the same as saying, "I just hold a single stock and it's called SPY". ::) Link to comment Share on other sites More sharing options...
Charlie Posted February 22, 2017 Share Posted February 22, 2017 Some interviews with Munger after the Meeting :): Cheers! Link to comment Share on other sites More sharing options...
redskin Posted February 22, 2017 Share Posted February 22, 2017 Some interviews with Munger after the Meeting :): Cheers! Wow! Thank you! A lot better than the meeting. Link to comment Share on other sites More sharing options...
cubsfan Posted February 22, 2017 Share Posted February 22, 2017 Yes, those are really terrific clips - thank you Charlie. Link to comment Share on other sites More sharing options...
LR1400 Posted February 23, 2017 Share Posted February 23, 2017 I love Munger and his wisdom, however, I'm not sold on his lack of diversification viewpoint. It makes sense that a few big ideas creates the majority of wealth but like others pointed out BRK is significantly diversified as is Liu Li. Also Schloss was highly diversified and seems to have created even more wealth. Many of the other super investors seem to be more diversified as well. Link to comment Share on other sites More sharing options...
rolling Posted February 23, 2017 Share Posted February 23, 2017 Some interviews with Munger after the Meeting :): Cheers! Great stuff. Loved the reading Barrons part: 50 years reading to get out a single idea that was a 15 bagger to him (40 bagger in total). I believe a lot can be learned from this: 1) patience is needed: a) both in the waiting, in the holding and selling 2) He recognized the idea as good because he was prepared: a) he knew the type of business and that is was usually sticky b) it was distressed investing, bonds were selling at 30 cents. His knowledge of the business led him to believe it would survive 3) He is looking for high return ideas a) When he considered the idea good enough it went on to be a 40 bagger. b) In 50 years of waiting he certainly refused many certain doubles or triples while waiting for the fat pitch. c) Just to think that I am happy and load up when I find an almost certain double in a few years... 1st post ;D ;D ;D Link to comment Share on other sites More sharing options...
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