Daily Journal Tells SEC Munger Knows Best, Buying Stocks
This article is for subscribers only.
Charles Munger’s Daily Journal Corp. told regulators that selling Treasuries and jumping into stocks was the safe move for the publisher in the financial crisis.
“The board recognized that this decision would be contrary to the conventional (but questionable) notion that the least risky way to preserve corporate capital for the long-term benefit of stockholders is to invest it in government bonds at interest rates approximating zero,” an attorney for Los Angeles-based Daily Journal wrote in a March 18 letter made public today.