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Buffett Partnership Letter 1965 Semi

1965 first half - 10.4% gain vs 0.8% Dow, 9.6 point advantage

warren-buffettbuffett-partnershipperformance1965

Buffett Partnership Letter 1965 Semi

Warren E. Buffett | July 9, 1965

First Half 1965 Performance

Metric Dow Partnership Limited Partners
First Half 1965 +0.8% +10.4% +9.3%
  • 9.6 percentage point advantage over Dow

Market Context

The Dow reached a high of 939.62 on May 14th before declining to 868.03 by June 30th.

"We actually achieved a wide margin during the upswing and then fell at a rate fully equal to the Dow during the market decline."

Control Situation Acquired

During the first half, Buffett acquired controlling interest in one of the situations previously described in the "General Private Owner" category.

"When a controlling interest is held, we own a business rather than a stock, and a business valuation is appropriate."

The business operation and acquisition cost were both satisfactory, with excellent management in place.

Source

Warren E. Buffett, July 9, 1965.