Buffett Partnership Letters (1957-1970)
Before Berkshire Hathaway, Warren Buffett ran a successful investment partnership from 1956 to 1969. These letters document his early investment philosophy, which laid the foundation for his later success.
The Partnership Years
Buffett formed his first partnership in 1956 with seven family members and friends. By 1969, the partnership had grown to $100M+ and was returning 29.5% annually — far ahead of the Dow.
Buffett Partnership Letter 1957 Annual
1957 annual - 10.4% gain vs -8.4% Dow, first year performance
1957 Annual Letter to Partners
Buffett's second annual letter explaining the distinction between General Issues and Work-outs, and the partnership's outperformance during a declining market.
Buffett Partnership Letter 1958 Annual
1958 annual - 40.9% gain vs 38.5% Dow, Commonwealth Trust case study
1958 Annual Letter to Partners
Buffett's third annual letter featuring the Commonwealth Trust Co. case study — a masterpiece of patient value investing and special situation analysis.
Buffett Partnership Letter 1959 Annual
1959 annual - 25.9% gain vs 19.9% Dow, 3-year compound 95.9% vs 52.2%
1959 Annual Letter to Partners
Buffett's fourth annual letter revealing a 35% position in an investment trust trading at substantial discount, with an emphasis on being insulated from general market behavior.
Buffett Partnership Letter 1960 Annual
1960 annual - 22.8% gain vs -6.3% Dow, Sanborn Map case study
Buffett Partnership Letter 1961 Semi
1961 July letter on partnership merger plan and structure changes
Buffett Partnership Letter 1962 Annual
1962 annual - 13.9% gain vs -7.6% Dow, partnership structure explained
Buffett Partnership Letter 1963 Annual
1963 annual - 38.7% gain vs 20.7% Dow, 7-year compound at 27.7%
Buffett Partnership Letter 1963 Semi
1963 first half - 14% gain vs 10% Dow, Dempster transformation
Buffett Partnership Letter 1964 Annual
1964 annual - 27.8% gain vs 18.7% Dow, 8-year compound at 27.7%
Buffett Partnership Letter 1964 Semi
1964 first half - 12% gain vs 10.9% Dow, three control situations
Buffett Partnership Letter 1965 Annual
1965 annual letter showing 47.2% partnership gain vs 14.2% Dow
Buffett Partnership Letter November 1965
1965 November letter on Ground Rules and partnership operations
Buffett Partnership Letter 1965 Semi
1965 first half - 10.4% gain vs 0.8% Dow, 9.6 point advantage
Buffett Partnership Letter 1966 Annual
1966 annual - first decade summary, 36 point advantage over Dow
Buffett Partnership Letter November 1966
1966 November letter on valuation of controlled companies
Buffett Partnership Letter Mid-1966
1966 first half letter on performance and investment comparison
Buffett Partnership Letter 1967 Annual
1967 annual - 35.9% gain vs 19.0% Dow, best performance relative to market in history
Buffett Partnership Letter November 1967
1967 November - commitment letter instructions, no new partners policy
Buffett Partnership Letter October 1967
1967 October letter on changing investment environment and reduced targets
Buffett Partnership Letter 1967 Semi
1967 first half - 21% gain, 9.6 points over Dow, Berkshire textile problems
Buffett Partnership Letter 1968 Annual
1968 annual - 58.8% gain vs 7.7% Dow, 12-year compound 31.6%, partnership history
Buffett Partnership Letter November 1968
1968 November - no admission policy, DRC and B-H valuations, poor environment
Buffett Partnership Letter 1968 Semi
1968 first half - 16% gain vs 0.9% Dow, warning about market speculation
Buffett Partnership Letter December 1969 (1)
1969 December - DRC and B-H controlled companies detailed information
Buffett Partnership Letter December 1969 (2)
1969 December - Q&A on liquidation, restricted stock, bond recommendations
Buffett Partnership Letter October 1969
1969 October - introducing Bill Ruane, bond vs stock analysis, liquidation timeline
Buffett Partnership Letter 1969 Semi
1969 mid-year - partnership liquidation announcement, retirement plans
Buffett Partnership Letter February 1970
1970 February - tax-exempt bonds education for partners
The Three Categories
Buffett classified all investments into three categories, a framework he explained in detail in his 1962 letter.
General Issues
Undervalued securities expected to converge to intrinsic value over time.
Work-outs
Investments dependent on corporate actions: mergers, liquidations, tenders, reorganizations.
Controls
Businesses where the partnership acquired controlling interest.