Buffett Partnership Letter November 1965

Warren E. Buffett | November 1, 1965

Key Points

1966 Commitment Letter

Partners received two copies of the 1966 commitment letter:

• Can be amended up to midnight December 31st
• Final version becomes binding on December 31st
• No additions can be made after January 1st

Berkshire Hathaway Valuation

The partnership owns a controlling interest in Berkshire Hathaway. Yearend valuation will be:

"A price halfway between net current asset value and book value... This amounts to valuation of our current assets at 100 cents on the dollar and our fixed assets at 50 cents on the dollar."

Ground Rule 7 (New)

A new ground rule was added this year regarding unconventional (but logical) approaches to the partnership's operation.

Withdrawals and Additions

• Withdrawals paid January 5th
• Additions must reach partnership by January 10th
• November additions earn 6% interest until yearend

Source

Warren E. Buffett, November 1, 1965.