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Today in the stock market: Stocks climb on the back of stronger-than-expected GDP growth, while Tesla experiences a decline.

  Despite Tesla (TSLA) reporting disappointing earnings and a higher-than-expected US economic growth reading, US stocks climbed on Thursday. The Dow Jones Industrial Average (^DJI) gained 0.2%, the S&P 500 (^GSPC) rose 0.4%, extending its record streak from the previous day, and the Nasdaq 100 (^NDX) inched up about 0.6%.  The morning release of the advance estimate for fourth-quarter US gross domestic product (GDP) revealed a robust annualized growth rate of 3.3%, surpassing economists' expectations of 2%. Tesla, in its quarterly results, cautioned about a "notably" slower growth in electric vehicle production, missing profit forecasts. CEO Elon Musk expressed concerns about Chinese carmakers outpacing rivals in the absence of trade restrictions. Tesla shares plummeted up to 11%, marking a deeper decline compared to other tech-heavy "Magnificent Seven" stocks that have been propelling the S&P 500's surge. After-hours attention focused on Intel (INT...
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The recently released stock portfolio update from the late Charlie Munger reflects his legendary investment strategy.


 Over a span of 15 years, the late Charlie Munger transformed Daily Journal's stock portfolio from nothing to $300 million. The recent release of the final portfolio update during Munger's tenure as chairman highlights his extraordinary patience, discipline, and conviction.


Best known as Warren Buffett's right-hand man and vice chairman of Berkshire Hathaway, Munger passed away at the age of 99 on November 28. He served as the chairman of Daily Journal's board for approximately 45 years, from 1977 to 2022. In the midst of the 2008 financial crisis, Munger made the strategic decision to allocate a portion of the company's funds into stocks and took charge of managing its investments.

The first portfolio filing by Daily Journal dates back to the fourth quarter of 2013, likely triggered by the portfolio value exceeding the $100 million reporting threshold. The publisher and legal-software provider revealed holdings including 2.3 million shares of Bank of America, almost 1.6 million shares of Wells Fargo, 140,000 shares of US Bancorp, and 64,600 shares of South Korean steelmaker Posco.

Notably, Daily Journal maintained the exact same holdings of Bank of America, Wells Fargo, and US Bancorp a decade later, as of December 30 the previous year. Although it reduced its Posco position to 9,745 shares in the fourth quarter of 2014, there were no further adjustments until the fourth quarter of 2022, when it exited the position.

Munger introduced only one significant change to Daily Journal's portfolio, betting on Alibaba at the beginning of 2021. By the end of the year, he quadrupled the investment, only to halve it in the subsequent quarter, expressing dissatisfaction with the Chinese e-commerce giant.

Despite Munger's hands-off approach, not all investments were winners. The value of Daily Journal's Wells Fargo and US Bancorp positions saw modest gains of less than 10% over a decade, in contrast to the S&P 500's surge of over 150% during the same period. The Bank of America stake performed better, rising by almost 120%.

Munger's record found redemption in an early bet on Chinese EV maker BYD, likely constituting the majority of Daily Journal's $138 million in unrealized gains on September 30. This strategic move enabled the realization of a 15-fold return on a $3.3 million wager in late 2021.

In summary, Daily Journal's filings underscore Munger's commitment to concentrated, long-term bets made at compelling prices. His approach involved minimal interference, resisting the temptation to make frequent adjustments and staying resilient in the face of market fluctuations.

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