– Munger talked about the embedded options in the public notice papers he bought for Daily Journal… Phoenix public notice paper generated “thousands of percent” return for Daily Journal
– “Many of you people are here because you’re investment groupies, not Daily Journal shareholders.”
– “I don’t think anyone on the board or management of General Motors had one shred of guilt for destroying 100% of the equity of the greatest company in America.”
– “It’s hard to predict which comfortable two company duopolies will become ghastly competitive miasmas.”
– Munger on ratings agencies: they were selling opinions, not guarantees. But in front of a jury the internal emails will cause trouble.
– Munger, quoting Buffett “I’m waiting for a list of business that we declined because it was morally beneath us.”
– On why other CEOs can’t copy the Berkshire Hathaway (BRK.A) operating model: “They came to power at 58 and they’re gone at 63.”
– “I think the idea that everyone can have wonderful results from stocks is inherently crazy. Nobody expects everyone to succeed at poker.”
– “I made zero transactions in my PA (personal account) last year.”
– Munger praised Pabrai for copying Buffett’s Partnership model down to the last comma
– Question on BYD, Munger calls up Li Lu to talk: BYD compounded at 75% since its founding 15 years ago. Talked about engineering, problem-solving culture at BYD. Munger on it: “I don’t want to compete with 180,000 young Chinese. I’d rather partner with them.”
– There was a question on why he’s chosen not to disclose what’s in the DJCO investment portfolio. Munger says “many of you have already figured out what’s in our investment portfolio.”
– Munger recommended a book: A Universe out of Nothing by Lawrence Krause
– Munger is bearish on retailing, saying he switched from name brand toothpaste to Kirkland Signature (COST private label)
– Question: have you changed your investment philosophy due to macro concerns? Nope