No. of Recommendations: 14
Our director has an interesting background.
I recently read The Davis Discipline which covers three generations of the Davis family. It's a short, interesting read for those not familiar with the Davis family and their investment history and philosophy. Only 154 pages.
Re Chris, even with his father and grandfather's Wall Street history, that wasn't his calling growing up. He became a Communist early on. He did odd jobs, loved animals, and started studying pre-vet at Cornell. Went to Scotland to study abroad, found a girlfriend and they lived together on a meager stipend from his Dad. Decided he wanted to be a priest. Through family connections, started studies in France and slept on the floor of a loft in a cathedral. Was advised that priesthood wasn't his calling. Returned to US and, after several tries, got a job in banking without invoking his family's name. After several investment related jobs, developed a reputation on his own and was finally asked by his grandfather to join his business. Ultimately reconciled with his Dad and then carried on the family business.
Both grandparent and parent were determined that the kids make it on their own rather than inheriting the family fortune. Very frugal upbringing albeit Ivy League schooling.
Book is ultimately about disciplined investing over three generations. But also an interesting read in family dynamics. Some funny stories - e.g. about a $1 hot dog. On a walk with his granddad, saw a vendor and asked for a hot dog. Instead he got a lecture about how $1 could compound to $1000 over time if invested. Chris said he learned about saving, investing, and to carry his own money to spend.
No. of Recommendations: 16
Chris and his dad are 2 of my all time favorite people. Did not know that history. Thanks so much for sharing that fascinating family history, Tex.
You may recall a few months ago Barons asked Chris why he sits on the Berkshire board. Berkshire does not pay directors insurance. Why take the risk?
Chris: “Berkshire has been run with tremendous transparency, integrity, & a long-term orientation and a culture of stewardship.Who would say no that opportunity? That’s the present.
As for the future, every activist & investment banker will argue that in a world without Warren & Charlie, Berkshire’s unorthodox structure shouldn’t persist. BERKSHIRE IS WORTH DEFENDING (my emphasis)……If we had a Latin motto in my family, it would be the Latin for work before play. Eat your vegetables then you get dessert. Being on the board for Berkshire is like getting dessert first: the chance to be with Warren and Charlie. The vegetables will be come when they aren’t there, when the job of the board will be to protect this precious culture”.
After Warren leaves, he’s entrusted the future of this structure & enterprise to a very few people including Chris Davis. How do you top that?!
No. of Recommendations: 8
Many years ago I read The Davis Dynasty :Fifty Years of Successful Investing
On Wall Street. The author was John Rothchild who co-wrote the Peter Lynch books
Learn to Earn and One Up on Wall Street. The Davis Dynasty is 320 pages long as
opposed to the Davis Discipline is 154 pages long. Both books were written by
John Rothchild and carry the same subtitle Fifty Years of Successful Investing.
I have not read the The Davis Discipline so I cannot compare or contrast the
two books but the stories that Texirish quoted were familiar to me.
I remember the hot dog story because I often bring it up when I mention
the Munger quote "Most Of Our Shareholders Drive 10 Year Old Buicks."
Chris Davis manages the Clipper Fund which many years ago was managed by
well known value manager James Gipson. Munger's friend Franklin Otis Booth Jr.
was a Director of Clipper and had to find a replacement when Gipson left
Clipper. Booth owned 18,000 shares of BRKA putting him slightly behind
Munger in percentage ownership of Berkshire.
