Warren Buffett First Partnership Agreement

Apr 14, 2021 von

The results of the first ten years have absolutely no chance of being duplicated, or even closed remotely, over the next decade. 1969In May 1969, Buffett stunned his partners when he learned that he had liquidated the Buffett partnership. He made two proposals to his commanders on how to place the revenue. Buffett named them the Sequoia Fund (www.sequoiafund.com), created by his former classmate Bill Ruane. The partnership has liquidated everyone except two of its investments: Berkshire Hathaway and Diversified Retailing. Thus, each partner could take its share of shares in proportion to these two companies or opt for payment. Buffett took over the action. At the time, Buffett encouraged his commanders to take stock by saying that, honestly, despite all the factors outlined in the previous pages, I would continue the partnership in 1970, or even 1971, if I really had first-class ideas. Not because I want to, but simply because I would rather end up with a good year than a poor year. However, I don`t see anything available that gives reasonable hope of delivering such a good year, and I don`t want to go around hoping to get lucky with other people`s money. I`m not ready to face this market, and I don`t want to ruin a good record by trying to play a game I don`t understand, just to be able to kidnap a hero. 7.

I cannot promise results to partners. What I can promise is: a. Our investments are chosen on the basis of value, not popularity; B. that we will try to minimize the risk of a sustainable capital loss (non-short-term loss of listing) by obtaining a large safe distance and a large number of commitments with each commitment; and c. my wife, my children and I will invest almost all of our fortune in the partnership. By 1962, by the end of 1962, he had managed $7.2 million. Of that $1 million, it was Buffett`s money. He had 90 investors at that time – compared to the first 7th in 1962, he all merged in partnership and moved from his home to Kiewit – the current Berkshire Hathaway site.

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