Buffett Partnership Letter November 1967

Warren E. Buffett | November 1, 1967

Commitment Letter Instructions

• Commitment Letters become final December 31 (no exceptions)
• Withdrawals paid January 5th
• Additions must reach partnership by January 10th
• November additions earn 6% interest until yearend
• December additions do not draw interest

1967 Performance Through Date of Letter

At time of writing, Dow approximately 880:

• Dow return for year to date: +15%
• Partnership performance: +27%
• Limited partners: approximately +22% (before monthly withdrawals)

Valuation of Controlled Companies

Valuations for yearend will be confirmed in December 23 letter:

• Diversified Retailing Company (DRC): valued at cost plus equity in retained earnings
• Berkshire Hathaway: valued between net current asset value and book value

Portfolio Composition

At time of writing:

• Approximately $20 million in controlled companies
• Over $16 million in short-term governments
• Over $36 million total will not participate in stock market movements

"I can't find any obviously profitable and safe (from a long-term value standpoint, not a short-term quotational one) places to put the money."

Source

Warren E. Buffett, November 1, 1967.