These sources are excerpts from partnership letters by Warren E. Buffett for Buffett Partnership, Ltd., dated between July 1962 and January 1963, detailing the firm's investment philosophy and performance. The letters emphasize that the partnership's success is measured by its advantage over the Dow-Jones Industrial Average (Dow), particularly in declining or static markets, and not by absolute yearly gains. Buffett outlines his investment categories—"generals" (undervalued securities), "work-outs" (event-driven situations), and "control" situations—explaining that work-outs, such as the successful turnaround of Dempster Mill Manufacturing Company in 1962, provided a significant performance edge when the Dow declined. Furthermore, the letters reiterate core ground rules for partners, stressing that no rate of return is guaranteed, and that performance should be judged over a minimum of three to five years, rather than short-term fluctuations.