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Warren Buffet Partnership Letters 1957-1970
The complete Warren Buffet partnership letters until 1970.
152 pages
About the author
Warren Buffett
93 books1,581 followersWarren Edward Buffett is an American businessman, investor, and philanthropist who currently serves as the co-founder, chairman and CEO of Berkshire Hathaway. As a result of his investment success, Buffett is one of the best-known investors in the world. As of April 2024, he had a net worth of $139 billion, making him the ninth-richest person in the world.
Buffett was born in Omaha, Nebraska. The son of US congressman and businessman Howard Buffett, he developed an interest in business and investing during his youth. He entered the Wharton School of the University of Pennsylvania in 1947 before graduating from the University of Nebraska at 19. He went on to graduate from Columbia Business School, where he molded his investment philosophy around the concept of value investing pioneered by Benjamin Graham. He attended New York Institute of Finance to focus on his economics background and soon pursued a business career. He later began various business ventures and investment partnerships, including one with Graham. He created Buffett Partnership Ltd. in 1956 and his investment firm eventually acquired a textile manufacturing firm, Berkshire Hathaway, assuming its name to create a diversified holding company. Buffett emerged as the company's chairman and majority shareholder in 1970. In 1978, fellow investor and long-time business associate Charles T. Munger joined Buffett as vice-chairman.
Since 1970, Buffett has presided as the chairman and largest shareholder of Berkshire Hathaway, one of America's foremost holding companies and world's leading corporate conglomerates. He has been referred to as the "Oracle" or "Sage" of Omaha by global media as a result of having accumulated a massive fortune derived from his business and investment success. He is noted for his adherence to the principles of value investing, and his frugality despite his wealth.
Buffett has pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. He founded the Giving Pledge in 2010 with Bill Gates, whereby billionaires pledge to give away at least half of their fortunes.
Buffett was born in Omaha, Nebraska. The son of US congressman and businessman Howard Buffett, he developed an interest in business and investing during his youth. He entered the Wharton School of the University of Pennsylvania in 1947 before graduating from the University of Nebraska at 19. He went on to graduate from Columbia Business School, where he molded his investment philosophy around the concept of value investing pioneered by Benjamin Graham. He attended New York Institute of Finance to focus on his economics background and soon pursued a business career. He later began various business ventures and investment partnerships, including one with Graham. He created Buffett Partnership Ltd. in 1956 and his investment firm eventually acquired a textile manufacturing firm, Berkshire Hathaway, assuming its name to create a diversified holding company. Buffett emerged as the company's chairman and majority shareholder in 1970. In 1978, fellow investor and long-time business associate Charles T. Munger joined Buffett as vice-chairman.
Since 1970, Buffett has presided as the chairman and largest shareholder of Berkshire Hathaway, one of America's foremost holding companies and world's leading corporate conglomerates. He has been referred to as the "Oracle" or "Sage" of Omaha by global media as a result of having accumulated a massive fortune derived from his business and investment success. He is noted for his adherence to the principles of value investing, and his frugality despite his wealth.
Buffett has pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. He founded the Giving Pledge in 2010 with Bill Gates, whereby billionaires pledge to give away at least half of their fortunes.
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Displaying 1 - 18 of 18 reviews
October 22, 2021
Not a book. But interesting nonetheless.
The man was remarkably consistent. For 14 years he wrote practically the same thing more than 20 times. Also, it does show his concerted effort to do the right thing by his partners and the desire to act with integrity.
The letters talk about what he thought of investing, and the process he followed. If at all you are interested in investing and have the time to drill a few concepts in your brain 10/10 recommend reading the letters.
The man was remarkably consistent. For 14 years he wrote practically the same thing more than 20 times. Also, it does show his concerted effort to do the right thing by his partners and the desire to act with integrity.
The letters talk about what he thought of investing, and the process he followed. If at all you are interested in investing and have the time to drill a few concepts in your brain 10/10 recommend reading the letters.
September 29, 2017
World Class education In business this book is 100 times more valuable then any MBA that you can pay for. With the fraction of the price
He is true oracle of Omaha, these are some golden letters to preserve for life time
He is true oracle of Omaha, these are some golden letters to preserve for life time
April 11, 2022
I have read a lot of Buffett's work over the years but had never read the partnership letters. In thinking about taking on new managers for my own portfolio I found these letters to be exceptionally interesting, relevant and revealing along a number of dimensions:
1) Buffett clearly describes four different types of investments that were included in the portfolio (Generals -Private Owner Basis, Generals -Relatively Undervalued, Workouts and Controls) and how the use of these four categories helped dampen portfolio volatility.
2) Buffett sets out his framework for what his partners should hope to achieve from a return’s perspective. Initially this is an average of 10% per annum in excess of the market over a reasonable period and that this might be lumpy compared to the market. However, over time, due to the size of assets under management, market conditions (both elevated prices and competition) as well as a shift in his preferences*, he lowers this to a target expectation to achieve the lesser of 9% per annum or a five-percentage point advantage over the Dow. Towards the end of the 1960's he decides to retire from running the partnership and sets out his thinking on returns that alternative managers might achieve being:
I) That less than 10% of professionally managed money handled consistently for a decade would average 2% per annum over group expectancy.
II) That the top 1% to 2% of professional managers in the country who are working with material sums of money because they are so good, are unlikely to do much better than 4% per annum better than the group expectancy.
* His shift in preferences include that he might perhaps work less intensely than he did when he was younger and that he might continue investment in satisfactory (but far from spectacular) controlled business where he liked the people, and the nature of the business even though alternative investments offered an expectable higher rate of return.
3) The minimum time for evaluating managers: he prefers a five-year test, but he feels that a three-year test is the absolute minimum for judging performance.
4) He is not in the business of predicting general stock market or business fluctuations.
5) His interests are aligned with his partners given the substantial portion of his own and his families wealth is invested in the fund.
6) The power of compounding.
There is much else to be found in the letters and I strongly recommend that students of investing do read them, while they are seemingly from another time, they are timeless.
1) Buffett clearly describes four different types of investments that were included in the portfolio (Generals -Private Owner Basis, Generals -Relatively Undervalued, Workouts and Controls) and how the use of these four categories helped dampen portfolio volatility.
2) Buffett sets out his framework for what his partners should hope to achieve from a return’s perspective. Initially this is an average of 10% per annum in excess of the market over a reasonable period and that this might be lumpy compared to the market. However, over time, due to the size of assets under management, market conditions (both elevated prices and competition) as well as a shift in his preferences*, he lowers this to a target expectation to achieve the lesser of 9% per annum or a five-percentage point advantage over the Dow. Towards the end of the 1960's he decides to retire from running the partnership and sets out his thinking on returns that alternative managers might achieve being:
I) That less than 10% of professionally managed money handled consistently for a decade would average 2% per annum over group expectancy.
II) That the top 1% to 2% of professional managers in the country who are working with material sums of money because they are so good, are unlikely to do much better than 4% per annum better than the group expectancy.
* His shift in preferences include that he might perhaps work less intensely than he did when he was younger and that he might continue investment in satisfactory (but far from spectacular) controlled business where he liked the people, and the nature of the business even though alternative investments offered an expectable higher rate of return.
3) The minimum time for evaluating managers: he prefers a five-year test, but he feels that a three-year test is the absolute minimum for judging performance.
4) He is not in the business of predicting general stock market or business fluctuations.
5) His interests are aligned with his partners given the substantial portion of his own and his families wealth is invested in the fund.
6) The power of compounding.
There is much else to be found in the letters and I strongly recommend that students of investing do read them, while they are seemingly from another time, they are timeless.
July 5, 2019
For me, the biggest takeaway beyond the usual Buffett genius is the description of the size of his funds and investments. Dempster Mill, bought when it hit $28 (acquired at an average price of $35) and sold at $81 (if memory serves me right with these three numbers) would, adjusted for inflation, be but a $40M-market cap company today. So, Buffett's early returns were not on GEICO, AMEX, KO or the sort, but on very small (and easily understandable) businesses that are publicly traded.
It seems the biggest hedge funds, mutual funds, etc. look at companies that everyone else looks at; however, by looking at small companies that no one looks at (where the hell is Beatrice, Omaha anyway?), where big funds can invest but little of their money, those with few funds have a chance to find greatly mispriced securities.
It seems the biggest hedge funds, mutual funds, etc. look at companies that everyone else looks at; however, by looking at small companies that no one looks at (where the hell is Beatrice, Omaha anyway?), where big funds can invest but little of their money, those with few funds have a chance to find greatly mispriced securities.
February 11, 2017
Loved these letters; I even wrote a summary on them.
This entire review has been hidden because of spoilers.
June 15, 2016
Tells you a lot more about warren buffet. He doesn't stick to any rules or any instruments, he sticks to value.
July 16, 2019
Warren likes to say that there are no called strikes in investing. Strikes occur only when you swing and miss. The letters are a home-run. They are full of nuggets of wisdom.
January 10, 2020
Wonderful.
April 30, 2022
Kind of fascinating to read.
May 1, 2022
Not bad. Really old school but good for historical context.
May 29, 2022
Incredible read. Highly recommend for all investing and general business enthusiasts.
November 22, 2022
Super dry read.
February 8, 2023
Amazing writings. Such a display of great leadership!
March 4, 2023
10 books for the title of 1.
July 22, 2023
Insightful.
September 9, 2023
This guy is such a committed executive!
July 9, 2016
Good Read..
May 9, 2012
A must read for any investor. So many gems
Displaying 1 - 18 of 18 reviews