This episode is about letters from Warren Buffett of Buffett Partnership, Ltd. (BPL) to his partners, detailing the partnership’s investment performance and philosophy during 1966 and the first decade of operation. The July 1966 letter provides an interim performance report, noting the Dow's decline in the first half of the year while the partnership achieved an "abnormal" gain of 8.2%, and discusses the acquisition of Hochschild, Kohn & Co., a privately owned department store. The January 1967 letter reviews the full 1966 performance and the first decade of BPL, highlighting that BPL vastly outperformed the Dow and major investment funds, while also explaining the decreasing availability of attractive investment opportunities and reaffirming his commitment to a disciplined, long-term valuation-based approach rather than market forecasting. Both letters include detailed tables comparing BPL’s results against the Dow-Jones Industrial Average and various investment companies.

This episode is about letters by Warren E. Buffett to his partners at Buffett Partnership, Ltd. (BPL) detail the firm's financial performance and operational philosophy during 1965. The letters demonstrate BPL’s significant outperformance against the Dow Jones Industrial Average and major investment companies, with the Partnership Results showing a cumulative compounded annual rate of 29.8% compared to the Dow's 11.4% through 1965. Buffett discusses the strategic acquisition of a controlling interest in Berkshire Hathaway Inc. and explains the firm's unconventional but successful approach to low diversification, stating a willingness to invest up to 40% of capital in a single security. He also addresses administrative matters, such as the policies for advance payments and withdrawals and the decision to limit the admission of new partners due to concerns that increased size could harm future results. Finally, the letters emphasize the importance of using the Dow as a long-term yardstick for measuring investment management effectiveness.

These excerpts from letters to partners of Buffett Partnership, Ltd. (BPL) summarize the firm's financial performance and investment philosophy during 1964. The mid-year report notes performance generally aligned with the Dow-Jones Industrial Average (DOW) during an advancing market, while the year-end report confirms BPL significantly outperformed the DOW and several large investment companies, although the margin of superiority was the smallest since 1959. Warren Buffett consistently emphasizes the importance of objective performance measurement against the DOW and criticizes the poor results of highly-paid professional management in the broader investment company industry. The year-end letter also introduces a revised four-category framework for BPL's investment operations and discusses the firm's approach to taxes and conservatism, stressing that minimizing taxes is secondary to maximizing after-tax compound rate.

These source excerpts, taken from Buffett Partnership, Ltd. letters spanning 1963 and early 1964, detail the partnership's strong investment performance, particularly in 1963 when it significantly outperformed the Dow Jones Industrial Average and major investment companies. The communications emphasize the partnership's investment philosophy, which categorizes holdings into Generals, Workouts, and Controls, and stresses that short-term results are secondary to achieving superior long-term compounding rates with less risk compared to conventional investment media. A major success story highlighted is the turnaround and eventual sale of Dempster Mill Manufacturing Company, facilitated by manager Harry Bottle, which illustrates the effectiveness of their Control category investing. The letters also include administrative details for partners regarding taxes, withdrawals, and future commitments, while cautioning that their exceptional margin of outperformance in recent years is not sustainable indefinitely.

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.

These sources consist of two letters from Warren E. Buffett to his partners in Buffett Partnership, Ltd., detailing the fund's operations and financial performance in the early 1960s. The first letter, dated July 1961, announces the shift to a semi-annual correspondence and outlines extensive proposed changes to merge all existing partnerships into a single entity with a revised profit-sharing structure. The second letter, written in January 1962, reviews the partnership's impressive 1961 performance, showcasing substantial gains well above the Dow-Jones Industrial Average. This later communication also thoroughly explains the partnership's investment strategy—categorized as "generals," "work-outs," and "control" situations—and justifies using the Dow as a benchmark for performance while discussing the impact of increasing fund size.

This 1960 letter from Warren E. Buffett discusses the performance of his investment partnerships compared to the general stock market. Buffett explains his objective of achieving long-term superior performance, particularly in stable or declining markets, and provides detailed financial results for his partnerships from 1957 to 1960. A significant portion of the letter is dedicated to describing a "control situation" investment in Sanborn Map Co., an old, monopolistic map-making business with a struggling core operation but a substantial and growing investment portfolio. Buffett outlines his strategy to unlock value from Sanborn by separating its investment assets from the map business, ultimately leading to a successful restructuring for shareholders. He emphasizes the importance of understanding his investment philosophy and the necessity of secrecy in certain portfolio operations.

The provided text, an excerpt from a 1959 letter by Warren E. Buffett, offers an in-depth analysis of the general stock market in 1959 and a review of his partnerships' performance. Buffett highlights the discrepancy between the Dow-Jones Industrial Average's strong gains and the broader market's struggles, noting that more stocks declined than advanced. He discusses his apprehension regarding market levels and his investment philosophy focused on undervalued securities and work-out operations, aiming for strong results in down markets and average performance in up markets. The letter also details the partnerships' impressive returns for 1959 and a significant new investment that comprises a large portion of the portfolio.

This text presents a letter from Warren E. Buffett dated February 11, 1959, offering insights into the stock market of 1958 and his investment strategy. Buffett observes an "exuberant" and "mercurial" market psychology among investors, which he believes could lead to future trouble despite his focus on undervalued securities rather than market forecasting. He reviews the strong performance of his partnerships in 1958, outperforming the Dow-Jones Industrial Average, and explains his approach through a case study of Commonwealth Trust Co., illustrating how he acquired a significant stake in an undervalued bank and later sold it for a substantial profit. Finally, Buffett discusses his current challenge in finding attractive investments in a high market and his strategy of creating "work-outs" by taking large positions in undervalued companies to ensure above-average performance, especially in a declining market.

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.