15 Highlights of the Daily Journal (Charlie Munger) Annual Meeting – February 15, 2023

These are 15 highlights of the Daily Journal (Charlie Munger) annual meeting held on February 15, 2023.  Charlie Munger responded to questions submitted by shareholders and asked by Becky Quick of CNBC from 1:00 pm – 3:30 pm EST.

(1) Even though Charlie Munger (CM) retired from being Chairman of the Daily Journal Corporation (DJ), he still runs its stock portfolio.

(2) BYD is way ahead of Tesla in China but it is currently selling at 50 times earnings. It is expected to grow at 50% this year. He sold part of DJ’s stake in BYD a year ago at a higher price.

(3) Buying shares in Alibaba was a mistake since it is in retailing which is very competitive.

(4) He loves Costco and will never sell a share of it. But it is selling for 40 times earnings.

(5) He believes investing in China provides  better risk/reward as compared to the U.S. China is unlikely to invade Taiwan since it learned a lesson from the difficulty Russia is having with its invasion of Ukraine.

(6) Companies that make computer chips require investing everything to stay on top (the opposite of the situations he prefers where companies would require a minimum of investment).

(7) It is ridiculous for anyone to buy cryptocurrencies. National currencies are the greatest invention ever. The Chinese are correct in banning it. Governments should not allow them to exist. It should be avoided.

(8) He never bets. (He did bet a few thousand dollars many years ago.)

(9) He does not engage in short sales. 30 years ago he had 2 trades that were short sales. One was a currency trade which made him miserable because he had to keep adding margin to his account. Eventually he made a small profit.

(10) He opposes taxing stock buybacks (responding to a question I submitted).

(11) He has never exercised. (He is 99 years old.) He now uses a wheel chair.

(12) AI will not find a cure for cancer.

(13)The movie business is a terrible business because of unions, agents, and stars.

(14) Ben Graham got rich from one investment – Geico.

(15) The U.S. health care system is in terrible shape. Insurers pay providers a small percentage of what individuals pay. Singapore has a better health care system at 20% of the cost of the U.S. system.