Cobas AM: Nueva Gestora de Francisco García Paramés

Question: In recent years, Berkshire Hathaway has provided much greater insight into the company’s succession thoughts and has made available at the annual meeting the company’s leading managers that will steer Berkshire’s future. These actions have given some shareholders more visibility and comfort on their investment. Can you provide similar insight regarding the future at the Daily Journal and would you consider implementing policies like those at Berkshire so shareholders can get to know the up-and-coming leaders in the organization?

Charlie Munger: Well, the people doing the computer software are doing magnificently well—the people under Gerry: Maryjo and Danny. We hope they’ll continue doing magnificently well. But, of course, it’s a very difficult field. There’s a lot of competition and we’re a very small company compared to our main competitor. And so, we can’t promise we’re going to succeed. All we can promise is that we’re gonna try and so far as I can tell, we’re doing pretty well. Gerry, don’t you think we’re doing pretty well?

Gerald Salzman: I think so, Charlie.

Charlie Munger: I would go further. I don’t think Gerry is surprised that the people doing the work—Maryjo and Danny—are doing well. But I’m flabbergasted at how well they’re doing.

Gerald Salzman: Charlie refers to the courts, many times. The JTI software has been configured for other judicial and justice agencies, including district attorneys, prosecutors, public defenders, probation, etc. So we have one basic system configured in a number of different ways, including worker’s comp for a large state in the United States.

Charlie Munger: It’s a huge field in which we have a very interesting toehold with the strongest toeholds in Australia and California. We can’t promise what the outcome will be but we are trying pretty hard and we get some favorable impressions of progress. One thing I can promise is that I won’t contribute much to it because I don’t understand it.