Buffett Partnership Letter 1967 Semi
1967 first half - 21% gain, 9.6 points over Dow, Berkshire textile problems
warren-buffettbuffett-partnershipperformance1967
Buffett Partnership Letter 1967 Semi
Warren E. Buffett | July 12, 1967
First Half 1967 Performance
| Metric | Dow | Partnership | Limited Partners |
|---|---|---|---|
| First Half 1967 | +11.4% | +21.0% | +17.3% |
- January was bad: Dow +8.5%, Partnership only +3.3%
- Finished half with 9.6 point advantage over Dow
Berkshire Textile Problems
"B-H is experiencing and faces real difficulties in the textile business... this segment of our portfolio will be a substantial drag on our relative performance."
Despite no loss in underlying values, textile business offers no prospect of good return on assets.
Cumulative Record (1957-H1 1967)
| Metric | Dow | Partnership | Limited Partners |
|---|---|---|---|
| Cumulative | 148.3% | 1419.8% | 843.3% |
| Annual Compounded | 9.1% | 29.6% | 23.8% |
DRC and B-H Acquisitions
Both Diversified Retailing Company (80% owned) and Berkshire made important acquisitions in first half. DRC and subsidiaries (Hochschild Kohn and Associated Cotton Shops) highly satisfactory.
Source
Warren E. Buffett, July 12, 1967.