<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>ddef14a.txt
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<PAGE>

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                           SCHEDULE 14A INFORMATION

          Proxy Statement Pursuant to Section 14(a) of the Securities
                    Exchange Act of 1934 (Amendment No.  )

Filed by the Registrant [X]

Filed by a Party other than the Registrant [_]

Check the appropriate box:

[_]  Preliminary Proxy Statement         [_]  Confidential, for Use of the
                                              Commission Only (as permitted by
                                              Rule 14a-6(e)(2))

[X]  Definitive Proxy Statement

[_]  Definitive Additional Materials

[_]  Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12

                           Daily Journal Corporation
--------------------------------------------------------------------------------
               (Name of Registrant as Specified In Its Charter)


--------------------------------------------------------------------------------
   (Name of Person(s) Filing Proxy Statement, if other than the Registrant)


Payment of Filing Fee (Check the appropriate box):

[X]  No fee required

[_]  Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.


     (1) Title of each class of securities to which transaction applies:

     -------------------------------------------------------------------------


     (2) Aggregate number of securities to which transaction applies:

     -------------------------------------------------------------------------


     (3) Per unit price or other underlying value of transaction computed
         pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
         the filing fee is calculated and state how it was determined):

     -------------------------------------------------------------------------


     (4) Proposed maximum aggregate value of transaction:

     -------------------------------------------------------------------------


     (5) Total fee paid:

     -------------------------------------------------------------------------

[_]  Fee paid previously with preliminary materials.

[_]  Check box if any part of the fee is offset as provided by Exchange
     Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
     was paid previously. Identify the previous filing by registration statement
     number, or the Form or Schedule and the date of its filing.

     (1) Amount Previously Paid:

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     (2) Form, Schedule or Registration Statement No.:

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     (3) Filing Party:

     -------------------------------------------------------------------------


     (4) Date Filed:

     -------------------------------------------------------------------------

Notes:



<PAGE>

                           DAILY JOURNAL CORPORATION

                               ----------------
                   NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
                          To be held February 5, 2002

                               ----------------

To the Shareholders of
DAILY JOURNAL CORPORATION

  The Annual Meeting of Shareholders of Daily Journal Corporation (the
"Company") will be held at 915 East First Street, Los Angeles, California
90012 on Tuesday, February 5, 2002, at 10:00 a.m., Los Angeles time. The
purpose of the Annual Meeting is to consider and vote upon the following
matters, as more fully described in the accompanying Proxy Statement which is
attached hereto and incorporated herein:

    (1) Election of a Board of Directors.

    (2) Ratification of the appointment of Ernst & Young LLP as the Company's
  independent accountants for the current fiscal year.

    (3) Such other matters as may properly come before the meeting.

  The Board of Directors has fixed the close of business on December 14, 2001
as the record date for the determination of shareholders entitled to receive
notice of and to vote at the Annual Meeting or any adjournment thereof.

                                          By Order of the Board of Directors

                                          Ira A. Marshall, Jr.
                                          Secretary

January 4, 2002

                               ----------------

                                   IMPORTANT

  SHAREHOLDERS WHO DO NOT EXPECT TO ATTEND THE ANNUAL MEETING IN PERSON ARE
URGED TO DATE, FILL IN, SIGN, AND MAIL THE ENCLOSED PROXY IN THE ACCOMPANYING
ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.
<PAGE>

                           DAILY JOURNAL CORPORATION
                      355 South Grand Avenue, 34th Floor
                         Los Angeles, California 90071

                                PROXY STATEMENT
                      FOR ANNUAL MEETING OF SHAREHOLDERS
                               February 5, 2002

  Your proxy in the enclosed form is solicited by the Board of Directors of
the Company for use at the Annual Meeting of Shareholders to be held on
February 5, 2002 at 915 East First Street, Los Angeles, California 90012 at
10:00 a.m., and at any adjournment thereof. Each properly executed proxy
received prior to the Annual Meeting will be voted as directed, but, if not
otherwise specified, proxies will be voted for the election of the nominees
for directors named in this Proxy Statement and to ratify the appointment of
Ernst & Young LLP as the Company's independent accountants for the current
fiscal year. As to any other business which may properly come before the
meeting and be submitted to a vote of shareholders, proxies received by the
Board of Directors will be voted in accordance with the discretion of the
holders thereof.

  Each shareholder has the right to revoke his proxy at any time before it is
voted. A proxy may be revoked by filing with the Secretary of the Company at
355 South Grand Avenue, 34th Floor, Los Angeles, California 90071, a written
revocation or a properly executed proxy bearing a later date, or by voting in
person.

  The Company will bear the cost it contracts for in solicitation of proxies.
In addition to the use of the mails, proxies may be solicited by personal
interview, telephone, or telecopier by officers, directors and other employees
of the Company (none of whom will receive additional compensation therefor).
The Company will also request persons, firms and corporations holding shares
in their names, or in the names of their nominees, which are beneficially
owned by others, to send or cause to be sent proxy materials to, and obtain
proxies from, such beneficial owners, and, on request, will reimburse such
holders for their reasonable expenses in so doing.

  The close of business on December 14, 2001 has been fixed as the record date
for the determination of shareholders entitled to notice of and to vote at the
Annual Meeting and any adjournment thereof. Shares of Common Stock, of which
1,533,521 were outstanding on December 14, 2001, are the only voting
securities of the Company. A majority of the Company's outstanding shares of
Common Stock as of December 14, 2001 must be represented in person or by proxy
to constitute a quorum for the Annual Meeting. All shares represented in
person or by proxy, regardless of the nature of the vote, the indication of
abstention or the absence of a vote indication, including broker non-votes,
will be counted to determine the number of shares represented at the meeting.
This Proxy Statement and the enclosed form of proxy were first mailed to
shareholders on or about January 4, 2002.

                                       1
<PAGE>

                             ELECTION OF DIRECTORS

  The Bylaws of the Company permit from three to five members of the Board of
Directors. Presently, five directors serve on the Board. The directors are
elected annually and serve until the next annual meeting of shareholders and
the election of their successors.

  The Board of Directors has nominated for election the five current directors
of the Company. Shareholders have cumulative voting rights in the election of
directors. This means that each shareholder has the right to cast a number of
votes equal to his number of shares of Common Stock multiplied by the number
of directors to be elected, and to cast all of such votes for one nominee or
distribute such votes among two or more nominees as he chooses. The right to
vote cumulatively is dependent on a shareholder's giving notice of his
intention to cumulate his votes either to an officer of the Company in writing
48 hours before the meeting or by an announcement during the meeting before
the voting for directors commences. Once such notice is given, all other
shareholders entitled to vote at the meeting will be without further notice
entitled to cumulate their votes. Unless otherwise instructed, the persons
named in the accompanying form of Proxy will vote the proxies for the five
nominees named below, reserving the right, however, to cumulate such votes and
to distribute them among the nominees at the discretion of the Proxyholders.

  Directors are elected by a plurality of the votes cast by the shares
entitled to vote thereon. Abstentions and broker non-votes are not counted as
votes cast in favor of any nominee.

  The Board of Directors of the Company does not contemplate that any of the
following nominees will become unavailable prior to the meeting, but if any
such persons should become unavailable, proxies will be voted for such other
nominees as may be selected by the Board of Directors.

Directors

  The information set forth below as to each nominee for election as director
has been furnished to the Company by the respective persons named below:

<TABLE>
<CAPTION>
 Name              Age           Principal Occupation Last Five Years
 ----              ---           ------------------------------------
 <C>               <C> <S>
 Charles T. Munger  78 Mr. Munger has been Chairman and a director of the
                       Company since 1977. He also serves as Vice Chairman and
                       a director of Berkshire Hathaway Inc., a holding company
                       with interests in insurance companies, corporations
                       engaged in the retail sale of consumer goods, a
                       manufacturer of premium candies, various other
                       manufacturers, the publisher of The World Book
                       Encyclopedia and a newspaper, the Buffalo News. Mr.
                       Munger is also Chairman of the Board of Directors of
                       Wesco Financial Corporation (80% owned by Berkshire
                       Hathaway Inc.), which owns an insurance company and a
                       specialty steel distribution company. Mr. Munger is a
                       director of COSTCO Wholesale Corporation, a discount
                       merchant.

 J.P. Guerin        72 Mr. Guerin has been Vice Chairman and a director of the
                       Company since 1977. Mr. Guerin is a director of Lee
                       Enterprises, Incorporated, a company owning newspapers.
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
 Name                   Age         Principal Occupation Last Five Years
 ----                   ---         ------------------------------------
 <C>                    <C> <S>
 Gerald L. Salzman      62  Mr. Salzman was elected to the Board of Directors
                            and became President of the Company in 1986. Mr.
                            Salzman also acts as Chief Financial Officer,
                            Treasurer and Assistant Secretary of the Company.

 Donald W. Killian, Jr. 72  Mr. Killian has been a director of the Company
                            since 1988. Prior to retiring in 1996, Mr. Killian
                            was an attorney in private practice. Mr. Killian is
                            a private investor and co-trustee of several
                            private trusts.

 George C. Good         79  Mr. Good has been a director of the Company since
                            1988. Mr. Good is a private investor.
</TABLE>

  During the fiscal year ended September 30, 2001, the Board of Directors held
three meetings. The Board of Directors has two standing committees: the audit
committee, consisting of Messrs. Killian, Good, and Guerin, and the
compensation committee, consisting of all directors other than Mr. Salzman.
The audit committee held one meeting during the fiscal year. The audit
committee is responsible for assisting the Board in fulfilling its
responsibilities as they relate to the Company's accounting policies, internal
controls, and financial reporting practices. The compensation committee held
one meeting during the fiscal year. Each director attended all of the meetings
of the Board and any committee of which he was a member. There is no standing
nominating committee.

  Proxies given without instructions will be voted FOR the nominees listed
above.

                                       3
<PAGE>

                            EXECUTIVE COMPENSATION

  The following table sets forth compensation paid by the Company during the
last three fiscal years to the president, who is the only executive officer of
the Company whose aggregate compensation for any of such years exceeded
$100,000.

                          SUMMARY COMPENSATION TABLE

                              Annual Compensation

<TABLE>
<CAPTION>
            Name and           Fiscal                                Other Annual
       Principal Position       Year       Salary       Bonus       Compensation(1)
       ------------------      ------     --------     --------     ---------------
<S>                            <C>        <C>          <C>          <C>
Gerald L. Salzman               2001      $250,000     $   --          $   --
 President, Chief Financial     2000       250,000      100,000         238,280
 Officer, Treasurer and         1999       250,000      100,000         352,240
 Assistant Secretary
</TABLE>
--------
(1) All amounts were paid pursuant to the Company's Plan for Supplemental
    Employee Compensation (the "Deferred Management Incentive Plan").
    Participation in the Deferred Management Incentive Plan entitles employees
    of the Company to a designated share of the Company's income before taxes
    and supplemental compensation for the lesser of (a) ten years or (b) the
    period during which such employee remains in the Company's employ or in
    retirement (and not competing with the Company) following employment with
    the Company to age 65. Non-negotiable certificates of employee participant
    interest are given to employees as evidence of their participation in the
    Deferred Management Incentive Plan on the basis of their performance. Mr.
    Salzman received in fiscal 2001 a certificate entitling him under the
    Deferred Management Incentive Plan to .55% of the Company's pre-tax
    earnings for the current and the next nine years. There were no pre-tax
    earnings and thus no payment for fiscal 2001.

 Compensation of Directors

  Messrs. Munger, Guerin and Salzman receive no fees for services as a member
of the Company's Board of Directors. Messrs. Killian and Good each receive a
yearly stipend of $4,000. In addition, the Company reimburses directors for
travel and other expenses incident to service.

 Compensation Committee Interlocks and Insider Participation

  Mr. Munger, the chairman of the Company, serves on the compensation
committee of the Board. Mr. Munger does not receive compensation from the
Company.

                                       4
<PAGE>

 Deferred Management Incentive Plan

  Under the Deferred Management Incentive Plan in fiscal 2001, the Company
granted certificates entitling employees to receive an aggregate of 1.39% of
the pre-tax earnings in fiscal 2001 and the same percentage of income before
taxes and supplemental compensation expenses in each of the next nine years
provided they are employed by the Company or are retired and have worked for
the Company until age 65. There were no payments in fiscal 2001 under the
Deferred Management Incentive Plan because of the losses of Sustain
Technologies, Inc., the Company's 93% owned subsidiary as of September 30,
2001. The following table sets forth information about certificates granted
and payments made to all employees during the past five fiscal years pursuant
to the Deferred Management Incentive Plan.

                      DEFERRED MANAGEMENT INCENTIVE PLAN
        AWARDS AND PAYMENTS TO ALL EMPLOYEES IN LAST FIVE FISCAL YEARS

<TABLE>
<CAPTION>
            Percentage of pre-tax
                  earnings                   Aggregate Supplemental Compensation
          -----------------------------   ----------------------------------------
          Aggregate     Net aggregate         For             For
Fiscal     granted       cumulative       current year     prior year
 Year     for year       grants (1)          grants          grants        Total
------    ---------     -------------     ------------     ----------     --------
<S>       <C>           <C>               <C>              <C>            <C>
1997        1.47%           11.28%          $ 83,210        $556,408      $639,618
1998        2.13            11.73            130,510         588,165       718,680
1999        1.93            11.58             82,110         410,550       492,660
2000        2.22            11.69             65,250         277,680       342,930
2001        1.39            12.49                --              --            --
</TABLE>
--------
(1) Net of reductions for expired certificates.

                      DEFERRED MANAGEMENT INCENTIVE PLAN
                     EXECUTIVE AWARDS IN LAST FISCAL YEAR

<TABLE>
<CAPTION>
                                    Performance
                         Number of   or other
                          shares,     period        Estimated future payouts under
                         units or      until         non-stock price-based plans
                           other    maturation   -------------------------------------
          Name            rights     or payout    Threshold   Target         Maximum
          ----           ---------  -----------   ---------   ------        ----------
<S>                      <C>        <C>          <C>         <C>            <C>
Gerald L. Salzman.......    .55%(1)   9 years(1)    $0        $0(2)            --(2)
</TABLE>
--------
(1) In fiscal 2001, Mr. Salzman received a certificate (the "2001 Grant")
    entitling him under the Deferred Management Incentive Plan to .55% of the
    Company's income before taxes for the current and the next nine years,
    provided he remains in the employ of the Company or is retired (and not
    competing with the Company) following employment to age 65. (The .55%
    awarded in the 2001 Grant replaced an earlier awarded certificate which
    terminated with a final payment in fiscal 2000.) There were no pre-tax
    earnings and thus no payment for fiscal 2001.
(2) The amount payable to Mr. Salzman under the Deferred Management Incentive
    Plan in respect of his 2001 Grant is .55% of the Company's income before
    taxes. There were no pre-tax earnings and thus no payment for fiscal 2001.
    Should the Company have no pre-tax earnings in each of the next nine
    years, as was the case in fiscal 2001, no payments would be made to Mr.
    Salzman over the next nine years. The actual payments to Mr. Salzman will
    vary, however, depending on the Company's income before taxes in each year
    of such period.

                                       5
<PAGE>

                         COMPENSATION COMMITTEE REPORT

  The Company's executive compensation program is administered by the
compensation committee, consisting of all of the non-employee directors of the
Company.

  The Company's compensation program for management currently consists of
three elements: base salary, year-end bonuses and participation in the
Deferred Management Incentive Plan. Salary and bonus payments are primarily
designed to reward current and past performance, while awards granted pursuant
to the Deferred Management Incentive Plan are aimed at providing incentives
for long-term future profitability of the Company. In determining the amount
and form of executive compensation to be paid or awarded in 2001, the Board
considered the Company's overall performance over a period of years, rather
than constructing a guideline or formula based on any particular performance
measure in a single year. The performance and contribution of the individual
are the primary criteria used to determine salary.

  Base salaries are determined by evaluating the responsibilities of the
position and the individual's performance. A smaller number of employees
receive year-end bonuses and/or participate in the Deferred Management
Incentive Plan. The Company has no stock option plans, retirement plans,
disability insurance programs or traditional perquisites. The Company does
offer health insurance plans which include a life insurance policy for full-
time employees. The concept underlying the Deferred Management Incentive Plan
is to link compensation to the performance of the Company by granting to
participating employees a percentage of income before taxes and supplemental
compensation expenses in the current year and each of the next nine years
subsequent to the grant, provided they remain employed by the Company or are
retired and have worked for the Company until age 65. The committee recognizes
that a significant portion of the compensation paid pursuant to the Deferred
Management Incentive Plan relates to the certificates earned in prior years
with future payments entirely dependent on earnings.

  The compensation committee believes the Deferred Management Incentive Plan
is preferable to a conventional stock option plan. As a mechanism for
compensation, a stock option plan is capricious, as employees awarded options
in a particular year would ultimately receive too much or too little
compensation for reasons unrelated to employee performance. Such variations
could cause undesirable effects, as employees receive different results for
options awarded in different years. In addition, a conventional stock option
plan would fail properly to weigh the disadvantage to shareholders through
dilution. The Deferred Management Incentive Plan was implemented in
combination with repurchases of the Company's stock, and therefore the
Company's per share earnings have not been diluted by grants under the
Deferred Management Incentive Plan. At September 30, 2001, certificates for
225,500 units (which are approximate share equivalents based on stock
outstanding at the commencement of the plan) were outstanding under the
Deferred Management Incentive Plan while 314,803 shares of the Company's
common stock (including Treasury Shares) have been repurchased since the
commencement of the plan.

  Charles T. Munger, chairman, continues to work for nothing and to own a
substantial number of shares. Gerald L. Salzman is the only executive officer
who receives compensation and, in determining his compensation package, the
committee recognized that Mr. Salzman serves in several executive capacities.
Mr. Salzman currently serves as the Company's president, treasurer, assistant
secretary, chief accounting officer and chief financial officer.

                                       6
<PAGE>

  During fiscal 2001, Mr. Salzman's base salary remained $250,000, and this
base salary will be continued for fiscal 2002. There was no bonus for fiscal
2001. Because there were no pre-tax earnings, there was no payment pursuant to
the Deferred Management Incentive Plan. While the committee did not undertake
a comparison of Mr. Salzman's compensation to amounts paid by other companies
to their chief executive officers, the committee members did utilize in their
determination of Mr. Salzman's compensation their collective current and past
experience as directors and executive officers of numerous companies. After
considering the amount of the certificates previously granted to Mr. Salzman
under the Deferred Management Incentive Plan, the committee granted to Mr.
Salzman additional certificates entitling him to receive about .55% of the
pre-tax earnings of the Company. Certificates awarded to Mr. Salzman in
earlier years of the Deferred Management Incentive Plan, which constitute the
largest portion of his certificates, began to expire after fiscal 1996, and
those Certificates expiring in fiscal 2001 were for .55% of pre-tax earnings.
The compensation committee will continue to examine the appropriate amount of
future grants to Mr. Salzman in light of the Company's financial performance
and the expiration, or expected expiration, of a substantial portion of the
certificates Mr. Salzman currently holds.

  Compensation committee:                 Charles T. Munger
                                          J. P. Guerin
                                          Donald W. Killian, Jr.
                                          George C. Good

                            AUDIT COMMITTEE REPORT

  The Company's audit committee has reviewed and discussed the audited
financial statements with the Company's management and has discussed with the
independent auditors the matters required to be discussed by SAS 61
(Codification of Statements on Auditing Standards, AU Section 380) and the
Company's Audit Committee Charter. The audit committee has received written
disclosures and the letter from the independent accountants required by
Independence Standards Board Standard No. 1 (Independence Standards Board
Standard No. 1, Independence Discussions with Audit Committees), and has
discussed with the independent accountant its independence, including whether
the provision of its services is compatible with maintaining its independence.

  Based on this review and these discussions, the audit committee recommended
to the Board of Directors that the audited financial statements be included in
the Company's Annual Report on Form 10-K for the last fiscal year.

  The Company's Board of Directors has adopted a written Audit Committee
Charter for the audit committee. All members of the audit committee are
"independent" as defined in the National Association of Securities Dealers'
listing standards.

  Audit committee:                        Donald W. Killian, Jr.
                                          George C. Good
                                          J. P. Guerin

                                       7
<PAGE>

                               PERFORMANCE GRAPH

  The following graph shows a five-year comparison of cumulative total return
on the Company's common stock, the Standard & Poor's 500 Composite Index and
the Standard & Poor's Publishing- Newspapers MidCap Index, assuming $100 was
invested on September 30, 1996, and all dividends were reinvested. The Company
has not declared a dividend in any of the fiscal years shown.

                           Daily Journal Corporation
   Total Cumulative Shareholder Return for Five Year Ended September 30, 2001

                         [PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
   September 30                 1996    1997    1998     1999    2000     2001
   ------------                ------  ------  ------   ------  ------   ------
<S>                            <C>     <C>      <C>     <C>     <C>      <C>
Daily Journal Corporation....  100.00  152.50  116.67   122.08   95.42    90.42
S&P 500......................  100.00  140.45  153.15   195.74  221.74   162.71
Publishing (Newspaper) -
 Midcap......................  100.00  132.33  134.12   140.03  140.54   138.83
</TABLE>

                                       8
<PAGE>

        SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

  The following table sets forth as of December 31, 2001 the names and
holdings of those persons known to the Company to be beneficial owners of more
than 5% of its Common Stock, the holdings of each nominee for director, and
the holdings of all directors and executive officers as a group. Each person
has sole investment and voting power, except where indicated otherwise.

<TABLE>
<CAPTION>
                                                   Amount       Percent
                 Beneficial Owner            Beneficially Owned of Class
                 ----------------            ------------------ --------
       <S>                                   <C>                <C>
       Munger, Marshall & Co.                     599,409(1)      39.1%
       Charles T. Munger                          599,409(1)      39.1
       Ira A. Marshall, Jr.                       601,609(1)      39.2
       J.P. Guerin                                265,338(2)      17.3
       The Guerin Family Trust                    165,744(3)      10.8
       Wallace R. Weitz & Company                 114,800(4)       7.5
       Gerald L. Salzman                           31,827(5)       2.1
       Donald W. Killian, Jr.                       3,100(6)          (8)
       George C. Good                                None          --
       All directors and executive officers
        as a group (six persons)                  901,874(7)      58.8
</TABLE>
--------
(1) 599,409 shares are owned by Munger, Marshall & Co., a California limited
    partnership, whose address is 355 South Grand Avenue, Los Angeles,
    California 90071, in which partnership Mr. Munger and Ira A. Marshall,
    Jr., Secretary of the Company, are sole general partners and controlling
    persons who share investment and voting power. Mr. Munger and Mr. Marshall
    own approximately 16.7% and 2.5%, respectively, of the interest in Munger,
    Marshall & Co. Mr. Munger's and Mr. Marshall's business address is 355
    South Grand Avenue, Los Angeles, California 90071. The Company owns
    approximately 5.1% of the interest in Munger, Marshall & Co.
(2) 229,708 shares are held by The Guerin Family Trust and another trust for
    which Mr. Guerin is trustee and a beneficiary; 10,868 shares are held by a
    trust for which Mr. Guerin serves as trustee, as to which shares Mr.
    Guerin disclaims beneficial ownership; 6,762 shares are held by
    Mr. Guerin's wife, who exercises sole investment and voting power over
    such shares, as to which shares Mr. Guerin disclaims beneficial ownership;
    and 18,000 shares are held by the Guerin Foundation, as to which shares
    Mr. Guerin exercises sole investment and voting power but disclaims
    beneficial ownership. Mr. Guerin's, the trusts', and the foundation's
    business address is 355 South Grand Avenue, Los Angeles, California 90071.
(3) Mr. Guerin is trustee and a beneficiary of this trust.
(4) According to a Schedule 13G filed with the Securities and Exchange
    Commission on February 2, 2001, Wallace R. Weitz & Company and Mr. Wallace
    R. Weitz, president and primary owner of Wallace R. Weitz & Company, may
    be deemed to be the beneficial owners of 114,800 shares owned of record by
    investment advisory clients of Wallace R. Weitz & Company. The address of
    Wallace R. Weitz & Company and Mr. Weitz is 1125 South 103rd Street, Suite
    600, Omaha, Nebraska 79124.
(5) 30,936 of such shares are held by a pension plan of Mr. Salzman, 191
    shares are held by a pension plan of Mr. Salzman's wife, who holds sole
    investment and voting power over such shares.

                                       9
<PAGE>

(6) All of such shares are held by Mr. Killian and Annabelle L. Killian as
    trustees for the Killian Family 1987 Revocable Trust, who share investment
    and voting power.
(7) This figure eliminates double counting of 599,409 shares owned by Munger,
    Marshall & Co., of which both Mr. Munger and Mr. Marshall are general
    partners, and of 165,744 shares of the Guerin Family Trust, for which Mr.
    Guerin is a trustee and beneficiary.
(8) Less than 1%.

           RATIFICATION OF RELATIONSHIP WITH INDEPENDENT ACCOUNTANTS

  The Board of Directors for the Company has selected Ernst & Young LLP to
serve as Company's independent accountants during the current fiscal year. A
representative of Ernst & Young LLP is expected to be present at the Annual
Meeting to make such statements as Ernst & Young LLP may desire and will be
available to answer appropriate questions from shareholders.

  Ratification of the appointment of Ernst & Young LLP as the Company's
independent accountants for the current fiscal year will require that the
votes cast in favor of ratification exceed the votes cast against
ratification. Abstention and brokers non-votes are not counted for purposes of
determining whether this proposal has been approved.

  Proxies given without instructions will be voted FOR ratification of Ernst &
Young LLP as the Company's independent accountants.

                                      10
<PAGE>

                OTHER MATTERS REGARDING INDEPENDENT ACCOUNTANTS

 Change of Accountants

  On June 29, 2000, the Company received confirmation that its independent
accountant, PricewaterhouseCoopers LLP ("PwC"), had resigned. PwC's
resignation was not recommended or approved by the Company's Board of
Directors or by the audit committee. The reports of PwC on the financial
statements of the Company for fiscal years 1998 and 1999 contained no adverse
opinion or disclaimer of opinion and were not qualified or modified as to
uncertainty, audit scope or accounting principle. In connection with its
audits for fiscal years 1998 and 1999 and through the date of its resignation,
there were no disagreements with PwC on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which disagreements if not resolved to the satisfaction of PwC would have
caused them to make reference thereto in their report on the Company's
financial statements for those years. During fiscal years 1998 and 1999 and
through June 29, 2000, there were no "reportable events" (as defined in the
regulations of the Securities and Exchange Commission). The Company requested
and received a letter from PwC confirming that there were no such
disagreements or reportable events.

  On July 26, 2000, the Company engaged Ernst & Young LLP as its independent
accountant. During fiscal years 1998 and 1999 and during the period prior to
the engagement of Ernst & Young LLP, neither the Company nor anyone else
acting on its behalf consulted Ernst & Young LLP regarding the application of
accounting principles to a specified transaction (or the type of audit opinion
that might be rendered on the Company's financial statements) or any matter
that was either the subject of a disagreement or a reportable event.

 Audit Fees

  Ernst & Young LLP billed aggregate fees of $77,000 for professional services
rendered for the audit of the Company's fiscal 2001 financial statements and
the reviews of the financial statements included in the Company's Forms 10-Q
for fiscal 2001.

 Financial Information Systems Design and Implementation Fees

  Ernst & Young LLP performed no work and billed no fees in connection with
the design or implementation of any financial information systems for the
Company.

 All Other Fees

  There were no fees billed by Ernst & Young LLP other than the fees mentioned
in the "Audit Fees" section above.

                                      11
<PAGE>

                                 OTHER MATTERS

Other Business

  The Board of Directors does not know of any matter to be presented at the
Annual Meeting which is not listed in the notice of Annual Meeting and
discussed above. If other matters should come before the meeting, however, the
persons named in the form of proxy will vote in accordance with their best
judgment.

Cost of Solicitation

  The solicitation of proxies for the Annual Meeting will be made primarily by
mail. The Company may reimburse persons holding shares in their names as
custodians, nominees, or fiduciaries for expenses they may incur in obtaining
instructions from beneficial owners of such shares.

Proposals of Security Holders

  It is expected that the Company's 2003 Annual Meeting will be held on or
about February 7, 2003. Shareholders desiring to submit proposals for action
at that meeting will be required to submit them to the Company on or before
September 6, 2002. Any such shareholder proposal must also be proper in form
and substance, as determined in accordance with the Securities Exchange Act of
1934 and the rules and regulations promulgated thereunder.

  Stockholders intending to present proposals from the floor of the 2003
Annual Stockholder Meeting in compliance with Rule 14a-4 promulgated under the
Exchange Act of 1934, as amended, must notify the Company of such intentions
before November 20, 2002. After such date, the Company's proxy in connection
with the 2003 Annual Stockholder Meeting may confer discretionary authority on
the Board to vote on any such proposals.

Annual Report to Shareholders

  Enclosed with this Proxy Statement is the Annual Report of the Company for
the year ended September 30, 2001. The enclosed Annual Report is included for
the convenience of shareholders only and should not be viewed as part of the
proxy solicitation material.

Additional Information

  If any person who was a beneficial owner of Common Stock of the Company on
the record date for the Annual Meeting of Shareholders desires additional
information, a copy of the Company's Annual Report on Form 10-K will be
furnished without charge upon receipt of a written request prior to the date
of the Annual Meeting. The request should identify the person requesting the
Report as a shareholder of the Corporation as of December 14, 2001. The
exhibits of that Report will also be provided upon request and payment of
copying charges. Requests should be directed to Mr. Ira A. Marshall, Jr.,
Daily Journal Corporation, 355 South Grand Avenue, 34th Floor, Los Angeles,
California 90071.

                                          By Order of the Board of Directors

                                          Ira A. Marshall, Jr.
                                          Secretary

DATED: January 4, 2002

                                      12
<PAGE>


--------------------------------------------------------------------------------
PROXY

                           DAILY JOURNAL CORPORATION

  The undersigned hereby appoints Charles T. Munger, J. P. Guerin and Gerald L.
Salzman as proxyholders, each with the power to appoint his substitute; hereby
authorizes them or any of them to represent and vote as designated below all
the shares of common stock of Daily Journal Corporation held of record by the
undersigned on December 14, 2001 at the Annual Meeting of Shareholders to be
held February 5, 2002 or any adjournment thereof, and hereby acknowledges
receipt of the Notice of Annual Meeting of Shareholders and Proxy Statement,
each dated January 4, 2002.

  1. Election of Directors
                 [_] FOR all nominees listed below (except as marked to the
                     contrary below)

                 [_] WITHHOLD AUTHORITY to vote for
                     all nominees listed below

             Charles T. Munger, J. P. Guerin, Gerald L. Salzman,
                    Donald W. Killian, Jr., George C. Good

  (To withhold authority for any individual nominee, strike a line through his
                                  name above.)

  2. Ratification of appointment of Ernst & Young LLP as independent
     accountants for current fiscal year.

                         [_] FOR   [_] AGAINST   [_] ABSTAIN

  3.  In their discretion, the proxyholders are authorized to vote upon such
      other business as may properly come before the meeting.

             (Please sign and date this Proxy on the reverse side)

--------------------------------------------------------------------------------


--------------------------------------------------------------------------------


  This Proxy when properly executed will be voted in the manner directed herein
by the undersigned shareholder. If no direction is made, this Proxy will be
voted FOR proposals 1 and 2. Unless otherwise specified, the proxyholders or
their substitute may cast an equal number of votes for each nominee for
director or cumulate such votes and distribute them among the nominees at the
discretion of such proxyholders.

  This Proxy is solicited on behalf of the Board of Directors of the Daily
Journal Corporation.

                                             Dated: _____________________, 2002
                                             Signature: _______________________
                                             Signature: _______________________

                                             Please sign exactly as name
                                             appears. When shares are held by
                                             joint tenants, both should sign.
                                             When signing as attorney,
                                             executor, administrator, trustee
                                             or guardian, please give full
                                             title as such. If a corporation,
                                             please sign in full corporate
                                             name by president or other
                                             authorized officer. If a
                                             partnership, please sign in
                                             partnership name by authorized
                                             person.

                                             PLEASE MARK, SIGN, DATE AND
                                             RETURN THE PROXY CARD PROMPTLY
                                             USING THE ENCLOSED ENVELOPE.

--------------------------------------------------------------------------------

</TEXT>
</DOCUMENT>
