Legendary investor and polymath Charlie Munger, Vice President of Berkshire Hathaway and Warren Buffett’s longtime business partner, is speaking today at the Daily Journal Corporation (DJCO) Annual Shareholder Meeting in Los Angeles.
The event is being broadcast live exclusively on Yahoo Finance from 1 pm ET / 10 pm PT to 3 pm ET / 12 pm PT, available on the website’s homepage and in the video above.
“We will not be able to meet in person this year, but I hope that many shareholders will attend our annual online meeting. At the meeting, Jerry [Salzman] and I, as usual, will answer many questions, “wrote Munger in a letter to shareholders last month.
Although Buffett is the most public and recognizable face of Berkshire Hathaway (BRK-B, BRK-A), the iconic conglomerate was built on Munger’s project to go beyond the so-called “cigar butt” investment to “buy wonderful deals at fair prices. “
Thousands often make the pilgrimage to Omaha, Nebraska, to hear Buffett and Munger during the annual meeting of Berkshire Hathaway. Still, Munger’s devout followers – affectionately nicknamed him “groupies” – travel to Los Angeles for the Daily Journal’s annual meeting, where he presides over the court. Like most face-to-face events, this year’s meeting is being held virtually virtually.
Shareholders and value investment enthusiasts also used to make the trip to the Wesco Financial Corp meeting. based in Pasadena, California, before Berkshire acquired it.
Although there were only 410 shareholders registered with the Daily Journal on December 15, according to his annual report, Munger attracts a considerable and engaged audience each year, including non-shareholders, to hear his wisdom and maxims about business, investments , it’s life. He also talks about the affairs of the Daily Journal.
The company publishes ten newspapers, including the Los Angeles Daily Journal and the San Francisco Daily Journal. Journal Technologies provides case management software to 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 “dairy cow”, the newspaper business tied, posting revenue of $ 14.695 million, down 14% from the previous year. Meanwhile, the “much more important” software business generated $ 35.247 million in revenue, an increase of 12% over the same period last year.
“I am very optimistic about the eventual success of the Company’s software business, but I hope it will take considerable time. In the Company’s newspaper business, my greatest hope is that it will make a modest profit every year for many years.” Munger wrote.
As of September 30, the Daily Journal Corporation had $ 28.96 million in cash and a stock portfolio valued at $ 179.37 million. The portfolio includes investments in Bank of America (BAC), Wells Fargo (WFC), US Bancorp (USB) and Posco (PKX), according to the latest 13-F bond file. The portfolio of five companies includes one in foreign currency.
“This treasure trove of net wealth underpins the company’s operating business,” wrote Munger. “The company’s net worth came from newspapers’ retained earnings, multiplied by taking advantage of opportunities of a type no longer widely available.”
Munger added that the value of the stock portfolio reached $ 260 million on December 31, an increase of 45% over the end of September. He noted that “shareholders should not expect any significant appreciation above that level anytime soon.”
The Daily Journal Corporation’s stock closed at $ 404 on December 31, a price “reached amid (1) a lot of speculative frenzy and (2) a lot of forced buying by index funds,” wrote Munger.
The Daily Journal’s stock last traded up about 2.5% on Wednesday, close to $ 354.99.
This post will be updated continuously with highlights from Munger’s opening comments and shareholders’ questions and answers.
Julia La Roche is a correspondent for Yahoo Finance. follow her Twitter.