This 1957 letter from Warren E. Buffett, addressed to his limited partners, provides an overview of the stock market during that year and details the performance and strategy of his investment partnerships. Buffett notes that despite a moderate market decline, his partnerships outperformed the Dow-Jones Industrials, attributing this success partly to the bear market conditions and his focus on undervalued securities and "work-outs" – investments tied to specific corporate actions rather than general market movements. He explains the differences in performance among partnerships based on when funds were received and emphasizes his long-term goal of outperforming market averages by 10% annually, despite acknowledging the patience required for his investment approach. The letter concludes with an invitation for partners to ask questions, aiming to transparently share his investment philosophy without revealing individual holdings.