I was listening to Charlie Munger at their last annual meeting, and things seemed to be going OK. It’s only 2.5% above 52-week lows and nearly 32% below 52-week highs. I could not find stock options on it to leverage a small investment though. Any thoughts?
I remembered looking into it. After you strip out the investment portfolio, it’s trading at a very high PE to the operating business (though it’s relatively much smaller compared to the investments). So in essence, you are paying for Munger’s ability to manage the investment portfolio at a premium.
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I think you are paying for the court software business that currently is in the process of implementation but will eventually be in a revenue producing position if successful? I have no way to quantify the opportunity. But it is likely attractive.
Pardon the inability to source the quote, but I do remember Mr.Munger saying that qualifying and implementing the court software was very difficult. If successful,the moat would be large.
JK
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