Did Munger Create a Mini Berkshire at the Daily Journal?

Charlie Munger, Warren Buffett’s right-hand man, may have created a mini Berkshire Hathaway inside the small company called the Daily Journal Corp.

Munger is best known as the sidekick to Warren Buffett. But he is also the chairman of this newspaper publisher based in Arizona and California, and he has been investing cash for this company in the stock market since the beginning of 2009. Bloomberg has a report in great detail sharing the investments and stocks owned by this company.

Since Munger started investing for the company, the Daily Journal’s market value is actually tripled.

After looking at the last earnings report of the company, the Daily Journal held securities valued at $120,299,000 as of the end of March 31, and this includes unrealized gains of $70,605,000. The investments – although they weren’t named – are in two foreign companies, three Fortune 200 companies and a sixth company’s bonds.

The Daily Journal does not have the same profile as Berkshire Hathaway – since the company’s stock market value is only $173.3 million. That is actually 1000 times smaller than Berkshires market value, which is $291.32 billion. Plus, the Daily Journal’s trading is thin. It only averages 1266 shares traded each day.

Even though Munger has a golden touch, it doesn’t seem to be able to turn around the fortunes of the print media world. The company’s pretax earnings, from its traditional business, dropped by 18% in a period of six months through March 31.

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