Fund Manager Comments on Inflation, Public vs. Private Investing, Small Caps & Diageo

(Substack Exclusive) Reading Materials (DJCO US, BRK.B US, DGE LN)

Introduction: This is the February edition of our monthly “Fund Manager Comments” newsletter (published later than usual this month due to Q4 results), where we track public comments by key institutional fund managers and try to draw lessons from their decisions, especially where these overlap with our own holdings and research coverage.

This month, we have comments from Charlie Munger (on inflation and stocks), Warren Buffett (on public stocks vs. private investments), The London Company (on small cap valuations) and Lindsell Train and Troy (on Diageo).

Charlie Munger on Inflation as Reason to Hold Stocks

We start with Charlie Munger’s live Q&A session during the Daily Journal Corporation’s AGM on 15 February. The whole session was worth watching, but we highlight this part (at around 1:12:00) where Munger said he expects to see more inflation in the future and that’s why he prefers stocks over government bonds:

“There is no question about the fact that, as interest rates have gone up, i…