[ad_1]
This article originally appeared on Business Insider.
The late Charlie Munger grew the Daily Journal’s stock portfolio from zero to $300 million in less than 15 years. The newspaper has just submitted its final portfolio update from the legendary investor’s time in charge, and it highlights Munger’s extraordinary perseverance, discipline and conviction.
Munger, best known as Warren Buffett’s right-hand man and vice chairman of Berkshire Hathaway, died on November 28 at the age of 99. He served as chairman of the Daily Journal’s board of directors for approximately 45 years, from 1977 to 2022. When the market crashed during the 2008 financial crisis, he put some of the company’s money into stocks and began managing investments.
Daily Journal’s first portfolio report dates back to the fourth quarter of 2013, likely because the company’s holdings exceeded the $100 million reporting threshold at that time. The publisher and legal software provider disclosed 2.3 million shares of Bank of America, about 1.6 million shares of Wells Fargo & Co., 140,000 shares of US Bancorp and 64,600 shares of South Korean steelmaker Posco.
Amazingly, 10 years later, as of December 30 of last year, the Daily Journal held exactly the same amount of stock in Bank of America, Wells Fargo, and US Bancorp. The company reduced its position in Posco to 9,745 shares in the fourth quarter of 2014, but did not touch the position again until the end of its holding in the fourth quarter of 2022.
Munger has made only one other major change to the Daily Journal’s portfolio. He bet on Alibaba at the beginning of 2021 and quadrupled his bet by the end of the year, but halved it the following quarter after growing fed up with the Chinese e-commerce giant and deciding it was a mistake. did.
It’s worth noting that Munger’s hands-off approach was not a total victory. The value of the Daily Journal’s Wells Fargo and U.S. Bancorp positions rose less than 10% over 10 years, while the S&P 500 index soared more than 150% over the same period. Bank of America stock has fared even better, rising nearly 120% over the period.
Munger’s record appears to have been saved by an early bet on Chinese EV maker BYD. This bet likely accounted for most of the Daily Journal’s $138 million unrealized profit on Sept. 30, with the $3.3 million bet realizing a 15x return in the second half of 2021. was completed.
Still, the Daily Journal filing underscores Munger’s commitment to betting intensively, buying only at compelling prices over long periods of time, selling rarely, and resisting the urge to tinker or panic. are doing. For at least a decade, he has largely kept his hands on a handful of U.S. stocks, adding his name to just one company, exiting another and leaving three positions entirely intact.
[ad_2]
Source link
