‘Things were very difficult’: Warren Buffet’s right-hand man has a blunt message for those worried about ‘difficulty’. 3 stocks that keep Charlie Munger happy in tough times

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‘Things were very difficult’: Warren Buffet’s right-hand man has a blunt message for those worried about ‘difficulty’. 3 stocks that keep Charlie Munger happy in tough times

Despite a strong start to 2023 for stocks, inflation remains hot and recession fears remain.

But Charlie Munger, Warren Buffett’s right-hand man, suggests should be more content with our current situation.

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“People are less happy about the state of affairs than when things were very difficult,” Munger said earlier this year.

“It’s strange for someone my age, because I was in the middle of the Great Depression when the hardship was unbelievable.”

Best known as Berkshire Hathaway’s vice chairman and Buffett’s longtime business partner, Munger also serves as chairman of the Daily Journal, a newspaper publisher who owns a large portfolio.

So if you’re hoping for some of Munger’s blunt realism to rub off on you this year, why not borrow some of his investment options as well? If these three stocks could keep a 99-year-old investing veteran happy, they’ll probably work for you, too.

Bank of America

The Daily Journal owned 2.3 million shares of Bank of America (NYSE:BAC) at the end of September 2022, which was worth approximately $69.46 million at the time. captured 42.49% of the portfolio, making the bank the largest publicly traded holding in the Munger firm.

With economic turmoil forecast for this year, it’s a good catch for Munger. While many sectors fear rising interest rates, Banks look forward to them. That’s because banks lend at higher rates than they borrow, then pocket the difference.

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When interest rates rise, the spread of a bank’s earnings widens.

And it just so happens that Bank of America has been steadily increasing its payouts to shareholders.

Last summer, Bank of America raised its quarterly dividend by 5% to 22 cents per share — and that follows the company’s 17% dividend increase through July 2021.

At the current share price, the bank offers an annualized yield of 2.5%.

Buffett likes companyAlso, because Bank of America is the second largest holding in Berkshire Hathaway.

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Wells Fargo

With approximately $1.9 trillion in assets, Wells Fargo (NYSE:WFC) is another heavyweight player in America’s financial services industry. It serves one in three households in America and more than 10% of small businesses in the country.

The Daily Journal owned 1.59 million shares of Wells Fargo as of September 30, 2022, making the bank the second largest public holding with a weighting of 39.16%.

According to the company’s latest earnings report, Wells Fargo generated $19.6 billion in revenue in the fourth quarter. Earnings for the quarter came in at 67 cents per share.

Management is monitoring how higher interest rates could affect its customers.

Wells Fargo CEO Charlie Scharf said in a statement, “Our customers remain strong with deposit balances, consumer spending and credit quality still stronger than pre-pandemic levels.”

“As look ahead, we are carefully watching the impact of higher rates on our customers and expect deposit amounts and credit quality to continue to return to pre-pandemic levels..”

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Wells Fargo’s quarterly dividend rate is 30 cents per share, which translates into an annualized yield of 2.6%.


Chinese stocks haven’t exactly been market darlings these days. For example, e-commerce giant Group fell 26% in 2022 and is down more than 40% over the past five years.

But the Daily Journal ranks the company as its third largest holding. As of September 30, it held 300,000 shares of Alibaba – the stake was valued at $24.0 million at the time.

At the same time, Alibaba’s shares may decline. opposite investor something to think about.

In the third quarter of 2022, the Chinese company’s revenue is expected to rise 3% from a year earlier to $29.1 billion.

Management noted that the company “delivered this top-line growth despite the impact on consumption demand by the COVID-19 resurgence in China, as well as slowing cross-border commerce due to rising logistics costs and foreign exchange volatility.” “

While Doesn’t Pay a Dividend, It Still Pays Cash to Shareholders stock buyback program,

Through November 16, 2022, the company has repurchased approximately $18 billion of its own shares under its current $25 billion share repurchase program.

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This article provides information only and should not be taken as advice. It is provided without warranty of any kind.