Transcript of Charlie Munger's DJCO meeting 2017

Here is this year's DJCO transcript.

My learning from giants continue.

The author has already highlighted the important points, so I will not repeat them here.

It is currently reporting season, and things are looking pretty pricey. DLX 30x, RWC 30x, COH 35x, IVC 30x. I look on forlornly and cannot help thinking that the number 30 is this year's financial equivalent to fashion's black. It is a perilous environment, as things trading at 15x starts to look interesting, just when cash is starting to pile up. This is an example of how our brains are wired to think and judge matters on relative terms, rather than on absolute terms. Pretty soon envy will be driving market prices, as everyone strives to do better than the Jones'.

The make-up of the market comprises of over 90% of spots where all capital goes to die, and only a handful of spots where capital is protected and thrives. If you avoid the bad spots, you cannot help but do well.

Enjoy and Prosper,
Yours One-Legged