I recently read Buffett’s early partnership letters from 1957-1970. It’s an amazing collection of letters that dispense wisdom in his typical folksy charm. His investment record was leaps and bounds better than the Dow Jones Index by the time he liquidated the partnership. When he started in 1957, his partnership began with capital of $105,100 (adjusted for inflation, it would amount to ~$900k). In 1969, the partnership had a net asset of ~$100m (~$700m in today’s dollar).
To show you how special he was even at this young phase:
- Compounded results of 25.3% after management fees for 12 years
- Operated predominantly by himself with no other investment team
- He has said that in the early years, he had investment ideas “anywhere from 110% to 1000%” of the partnership’s capital.
I don’t think there will be another one like him.
However, we can all still learn something from him. Continue reading