The late Charlie Munger, famed as Warren Buffett's accomplice and the brains behind Berkshire Hathaway, left an indelible mark on Daily Journal's stock portfolio. In the aftermath of Munger's final bow, his legendary approach to investing, defined by patience, discipline, and unwavering conviction, echoes through the company's last portfolio update.
A Patience-Infused Financial Tapestry
The late Charlie Munger, luminary in Warren Buffett's orbit and vice chairman at Berkshire Hathaway, passed away at the venerable age of 99 on November 28, 2023. Munger's indomitable legacy, intricately woven into newspaper publisher Daily Journal's financial narrative, recently surfaced in the company's last portfolio update.
Over his 45-year stint as board chair from 1977 to 2022, Munger not only grew Daily Journal's stock portfolio from scratch to $300 million but also showcased his unparalleled knack for patience, discipline, and steadfast conviction.
A Decade-Long Stillness Amid Market Turbulence
In the wake of the 2008 financial crisis, Munger demonstrated his strategic prowess by steering Daily Journal's investments into the tumultuous waters of the stock market. The company's first portfolio filing in the fourth quarter of 2013 revealed stakes in financial giants like Bank of America, Wells Fargo, US Bancorp, and even a dabbling in the South Korean steelmaker Posco. Astonishingly, a decade later, Daily Journal clung to the exact same quantity of shares in its key positions, a testament to Munger's undeterred patience.
Munger's Tactical Shuffle and the Chinese Bet
While the portfolio retained its stability, Munger did introduce a significant shift. In a bold move, he placed his chips on Alibaba at the start of 2021, quadrupling the bet by year-end. However, in a classic Munger move, he swiftly reversed course, halving the wager the following quarter, signaling a rare acknowledgment of a misstep. Notably, the hands-off strategy didn't yield universal triumphs, with Daily Journal's Wells Fargo and US Bancorp positions lagging behind the broader market.
BYD's Shine and the Art of Unwavering Commitment
Munger's selective touches weren't without brilliance. An early investment in Chinese EV maker BYD emerged as the saving grace, driving Daily Journal's unrealized gains. This calculated move allowed the company to realize a remarkable 15-fold return on a $3.3 million bet in late 2021.
In essence, Munger's financial legacy, etched in concentrated bets, long-term vision, and impervious commitment, resonates through Daily Journal's enduring portfolio. As the ink settles on this financial odyssey, Munger's legacy remains a testament to the art of selective mastery and unyielding poise.
