Tracking Charlie Munger's Daily Journal Portfolio – Q3 2019 Update

• Charlie Munger’s Daily Journal Portfolio continues to have just four positions. 
• The portfolio has been largely untouched since their first 13F filing for Q4 2013. 
• The overall portfolio value increased ~4% during the quarter. 

Charlie Munger’s Daily Journal portfolio value increased ~4% this quarter from ~$150M to ~$156M. Since their first 13F filing in Q4 2013, there has only been one change to the holdings: POSCO was reduced significantly in Q4 2014. After accounting for this sale, the portfolio has remained remarkably steady over the last four years. To know more about Charlie Munger, check out the book Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger.

Regarding the origins of this portfolio in 2009, Charlie Munger said the following during Daily Journal’s (DJCO) 2018 AGM Q&A: “In addition to Daily Journal's businesses, we have a great bundle of securities and want to dispel again that this is not some minor version of Berkshire. We have a bundle, because we bought them at a time when we preferred to own them to holding cash and had a lot of extra liquidity on hand that came to us by accident. The chances of more gains like what we have done in the last four or five years is zero. Oh, well we will have a big gain next quarter, because of a deferred tax reduction from the Trump tax code change, so we will look like a genius for one more quarter, I suppose.” The cost-basis of the positions acquired at the time was $63.4M.

Below is a look at the holdings:

Wells Fargo (WFC): WFC stake forms ~52% of the entire portfolio. The stock was at $45.40 EOY 2013 during their first 13F filing and is now at $53.42.

Bank of America (BAC): BAC is another large stake at ~43% of the portfolio. The stock was at $15.57 during their first 13F filing for EOY 2013 and is now at $34.90.

US Bancorp (USB): USB is a 4.98% of the portfolio position. The stock is at $58.51, around 45% higher compared to the EOY 2013 pricing of ~$40

POSCO (PKX): The minutely small 0.30% portfolio stake was sold down by ~85% in Q4 2014 at prices between $64 and $73. The stock is now at $50.31.

The spreadsheet below shows Charlie Munger's Daily Journal 13F stock holdings as of Q3 2019. Please visit our previous updates to get an idea on how the portfolio has progressed:

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