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Charlie Munger on Should You Buy Daily Journal at $305 per Share? | Collection: Charlie Munger #272




So Gage Sanchez writes in and says, “2 years ago, during the 2021 Annual Meeting, you said Daily Journal’s $350 stock was selling way above the price that you would pay for the new shares. As I write this, Daily Journal trades for $305 a share, a $420 million market cap. With a total equity portfolio value of over $310 million, debt charge is covered several times over by the bank’s dividends. And Journal Technologies’ off financial statement value in huge markets, do you still hold the same belief?"


Well, you accurately stated our circumstances.

We do have a lot of surplus wealth, but we needed to attack this big market. These courts, why would they gamble on a little company with no net worth, the courts that are letting the RFP contracts. So we’re using our net worth to help the business.


But does that get at the question of whether you’d buy the stock at $305?


Well, I don’t buy it, and I don’t sell it. So that’s what the Mungers have been doing.

You know what? It’s not a crazy evaluation considering what everything else is selling for these days. So I have no feeling that it’s, almost foolishly I have some crazy mystique, somebody, well, it’s a small Berkshire, and it will double like rabbits, you know...

And of course, it’s not a small Berkshire. I’m 99 years old for Christ's sake.


[YAPSS Takeaway]

Daily Journal is not a small Berkshire.

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