widenthemoat Posted January 22, 2021 Posted January 22, 2021 https://markets.businessinsider.com/news/stocks/warren-buffett-partner-charlie-munger-speculative-frenzy-stocks-lack-bargains-2021-1-1029993473 Does anyone on the board have access to the letter mentioned in the article, and is willing to share? I did a quick search but couldn't seem to find it. Thanks in advance.
gfp Posted January 22, 2021 Posted January 22, 2021 https://markets.businessinsider.com/news/stocks/warren-buffett-partner-charlie-munger-speculative-frenzy-stocks-lack-bargains-2021-1-1029993473 Does anyone on the board have access to the letter mentioned in the article, and is willing to share? I did a quick search but couldn't seem to find it. Thanks in advance. It is in the DJCO thread, but here it is - https://proxy.dailyjournal.com/Chairman%20Letter%20for%20FY2020.pdf
mattee2264 Posted January 22, 2021 Posted January 22, 2021 I don't think it is a very strong market call. All it is really saying is that segments of the market are speculative and to an extent speculation in some names has forced unreflective buying by the indexes. Both are difficult to argue with and are warning signs but nothing more and certainly not grounds to get out of the market completely.
Guest Posted January 22, 2021 Posted January 22, 2021 The dude is using margin. I mean, he can't be too concerned then, right?
wabuffo Posted January 22, 2021 Posted January 22, 2021 The dude is using margin. I mean, he can't be too concerned then, right? mmm - he sold enough stock in the Sept Q to basically raise cash to cover 90%+ of the margin loan. Prior to this Q, Munger didn't hold a lot of cash on the b/s. So is he really still on margin? Technically yes, but... wabuffo
Guest Posted January 22, 2021 Posted January 22, 2021 The dude is using margin. I mean, he can't be too concerned then, right? mmm - he sold enough stock in the Sept Q to basically raise cash to cover 90%+ of the margin loan. Prior to this Q, Munger didn't hold a lot of cash on the b/s. So is he really still on margin? Technically yes, but... wabuffo Didn't know that. Thanks!
jasonchin Posted January 23, 2021 Posted January 23, 2021 If you haven't seen, a short doc on Charlies shared recently:
bizaro86 Posted January 24, 2021 Posted January 24, 2021 The dude is using margin. I mean, he can't be too concerned then, right? Lol. Maybe r/Wallstreetbets had it right. Hard to argue when even Charlie Munger is buying electric vehicle stocks on margin. I guess he did it before it was cool.
dontdodebt Posted January 24, 2021 Posted January 24, 2021 The dude is using margin. I mean, he can't be too concerned then, right? Where can I see this information, that he is using margin?
wabuffo Posted January 24, 2021 Posted January 24, 2021 Where can I see this information, that he is using margin? I think folks are referring to the borrowings used by Munger to buy the two software companies in 2012 and 2013. https://www.sec.gov/Archives/edgar/data/783412/000143774914011800/djco20130930_10k.htm This is the description here in the 10-K: [click on the image for full-size viewing] And you see the amount on the balance sheet here: wabuffo
Guest Posted January 24, 2021 Posted January 24, 2021 The dude is using margin. I mean, he can't be too concerned then, right? Where can I see this information, that he is using margin? I just saw it in the letter: "At September 30, 2020, the Company had not only its two businesses, but also a large trove of liquid wealth consisting of $28,963,000 in cash and marketable common stocks with a value of $179,368,000, offset by $29,493,000 in margin debt.:
coc Posted January 28, 2021 Posted January 28, 2021 They took margin to buy a competitor. So they didn’t have to sell the stocks. It’s nothing in context of their liquid assets.
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