Buffett Partnership Letter November 1968

Warren E. Buffett | November 1, 1968

No Admission Policy

"The answer is unequivocally 'yes'. This is applied across the board, and I have had to turn down spouses, children, grandchildren, etc. of present partners."

Adding new members would have a negative effect on all present partners.

Yearend Valuations

Diversified Retailing Company (80% owned):

• Yearend valuation: $8,800,000
• vs $7,200,000 last year
• Original cost: $4,800,000
• Valuation method: cost plus equity in retained earnings

Berkshire Hathaway (70% owned):

• Yearend valuation: $31/share
• vs $25/share last year
• Note: $25 last year was above market, $31 this year is below market

1968 Performance Status

At time of writing:

• Dow: +8%
• Partnership margin over Dow now wider than 15% at mid-year

"Our backlog of potentially profitable ideas for 1969 is virtually nil."

Source

Warren E. Buffett, November 1, 1968.