I feel about Russia the way he feels about China. If he’s nervous, he doesn’t have to join us. Other people, including Sequoia, the leading venture capital firm in the United States, have made the same decision we have.īut I’m sympathetic to Gundlach. We invested some money in China because we could get more value in terms of the strength of the enterprise on the price of the security than we could get in the United States. It’s got this huge population and this huge modernity that has come in the last 30 years. Please explain why you are right.Ĭharlie Munger: Well, of course, only the future knows who’s going to be right. I think there’s a risk of that.” Obviously, with a significant percentage of the Daily Journal’s marketable securities invested in BYD and Alibaba, you feel differently. I think that investments in China could be confiscated. I don’t trust the relationship between the United States and China anymore. I’ve never invested in China long or short. Question: In January, Jeff Gundlach was quoted: “China is uninvestable, in my opinion, at this point. There’s no doubt about what’s going to happen, the courts are going to get more efficient and get with the modern world-also the district attorney’s offices and the probation offices. We have a huge market and it’s going to be slow and bureaucratic. It’s a huge market and it’s intrinsically going to be very slow to get done.
THE DAILY JOURNAL SOFTWARE
The bad news is that it’s a slow, damn tough way to grind ahead in software because it’s very bureaucratic. There is a huge market for automation of the courts. And the filing should be done electronically. That should all be done on Zoom and so forth. There’s no reason where lawyers should go down through heavy traffic and wait for some little motion. What’s interesting is that the courts of the world have been in the Stone Age. Would you care to expound on that thought?Ĭharlie Munger: I’m glad to. Question: In the annual report, you noted that prospects and software now seem especially interesting. Question: Who are principal competitors in supplying software to court systems? And do you have a guess as to who has what market share?Ĭharlie Munger: Well, Tyler Technologies has the big share and the rest is scattered. So that’s the reason for the decline in those numbers.Ĭharlie Munger: By the way, other software companies avoid obsoleting a system because they lose some business but we want the customers to have the more modern system. And as we expected, many of the smaller agencies decided not to go to our main system, which we call eCourt, eSystems, eProbation, eProsecutor, and ePublic Defender. Gerald Salzman: The reason for the decline to a certain degree is that several years ago, we decided not to support a very old legacy system that had a number of smaller agencies in addition to a number of larger agencies. I just wonder what is the reason for the decline?Ĭharlie Munger: Gerry, you take that one. On the website and all the other older 10-Q and 10-Ks, it said that JT serves 42 states. Question: In the latest 10-Q our company stated that Journal Technologies serves 30 states in the United States. So we tell everybody what we have to under the rules and we keep it confidential until then. As a shareholder, am I entitled to know what overseas securities we own on margin?Ĭharlie Munger: Well, the practice at Daily Journal and Berkshire is the same: We disclose what we have to under the rules because we don’t want people to know what we’re buying and selling. Question: I noticed that our company is using margin debts to purchase overseas securities and the overseas securities are not reported in the SEC filing. So obviously, we have succession planning to do in the near future.
Salzman’s retirement?Ĭharlie Munger: Well, our long-term plan is to replace both Gerry and I, because he’s 83 and I’m 98. Question: What is the current Daily Journal management succession plan and who will be in charge after Mr. Question: What are the reasons for Gerry and Peter Kaufman leaving the board?Ĭharlie Munger: Well, we are going to have to make changes in the future. And when I’m gone, or sufficiently impaired, we’ll get somebody else to do it. Gerald Salzman: Charlie, I think you should answer that.Ĭharlie Munger: Well, I’ll handle it as long as we can. How does the Daily Journal plan to handle its investment portfolio after Charlie steps back? Question: Charlie and Gerry, we wanted to start with questions that were very specific to the Daily Journal first. Now we’re going to answer questions in the tradition that’s common to both the Daily Journal and Berkshire Hathaway. Enjoy!Ĭharlie Munger: The Daily Journal’s formal business is over. I usually sit down and transcribe the Daily Journal’s AGM every year a few days after its occurrence.
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