Legendary investor and scholar Charlie Munger, vice president of Berkshire Hathaway and longtime Warren Buffett business partner, speaks today at the Daily Journal Corporation (DJCO) Annual Shareholders Meeting in Los Angeles.
The event is broadcast live exclusively on Yahoo Finance from 1 pm ET / 10 am PT to 3 pm ET / 12 noon PT, available on the site’s home page and in the video above.
“We won’t be able to join in person this year, but I hope that many shareholders will join our annual meeting online. At the meeting, Jerry [Salzman] and I, as usual, will answer many questions, “Munger wrote in a letter to shareholders last month.
While Buffett is the most public and recognizable face of Berkshire Hathaway (BRK-B, BRK-A), the iconic conglomerate was built on Munger’s plan to go beyond investment called “cigarette butt” to “buy business. Wonderful at the fair prices. “
Thousands of people make the pilgrimage to Omaha, Nebraska, to hear Buffett and Munger during the Berkshire Hathaway annual meeting. Still, Munger’s devoted followers, affectionately dubbed “groupies” by him, travel to Los Angeles for the annual meeting of the Daily Journal, where he presides over court. Like most in-person events, this year’s meeting will only take place virtually.
Shareholders and value investing enthusiasts also used to make the trip to the Pasadena, California-based Wesco Financial Corp. meeting before Berkshire acquired it.
While there were only 410 registered shareholders of the Daily Journal common stock as of Dec. 15, according to its annual report, Munger draws a sizable and engaged audience each year, including non-shareholders, to hear its wisdom and maxims about business, investments. , and life. He also talks about the Daily Journal business.
The company publishes ten newspapers, including the Los Angeles Daily Journal and the San Francisco Daily Journal. Journal Technologies provides case management software for courts and other justice agencies. The software business accounted for 71% of its total operating revenue in fiscal 2020, up from 65% of total revenue in 2019, according to its annual report.
In the letter to shareholders, Munger noted that after many years as a “source of income,” the newspaper business reached equilibrium, recording revenues of $ 14.695 million, 14% less than the previous year. Meanwhile, the “much larger” software business generated $ 35,247 million in revenue, 12% more than in the same period last year.
“I am very optimistic about the eventual success of the Company’s software business, but I hope this will take considerable time. In the Company’s newspaper business, my greatest hope is that it will make a modest profit each year for many years to come. “. Munger wrote.
As of September 30, the Daily Journal Corporation had $ 28.96 million in cash and had a portfolio of stocks valued at $ 179.37 million. The portfolio includes investments in Bank of America (BAC), Wells Fargo (WFC), US Bancorp (USB) and Posco (PKX), based on the most recent 13-F securities filing. The portfolio of five companies includes one based on foreign currency.
“This treasure trove of liquid wealth supports the Company’s operating businesses,” Munger wrote. “The Company’s liquid wealth came from retained earnings from newspapers, multiplied by seizing opportunities of a type that are no longer widely available.”
Munger added that the value of the stock portfolio reached $ 260 million on December 31, up 45% from the end of September. He noted that “shareholders should not expect a significant appreciation above that level in the short term.”
Shares of the Daily Journal Corporation closed at $ 404 on Dec. 31, a price “reached amid (1) much speculative frenzy and (2) forced purchases by index funds,” Munger wrote.
Daily Journal shares last traded around 2.5% on Wednesday, close to $ 354.99.
This publication will be continually updated with highlights from Munger’s opening remarks and shareholder questions and answers.
Julia La Roche is a correspondent for Yahoo Finance. Follow her on Twitter.