Buffett Letter: 1960 semi-annual 2


Semi-annual 2
  • Buffett says that 6 months or even 1 year is too short a time frame for measuring performance. His personal view is that a 5 year is an appropriate period.
  • He reiterates that his fund will under perform in a bull market.
  • Very important quote - Our holdings, which I always believe to be on the conservative side compared to general portfolios, tend to grow more conservative as the general market level rises. At all times, I attempt to have a portion of our portfolio in securities as least partially insulated from the behavior of the market, and this portion should increase as the market rises. However appetizing results for even the amateur cook (and perhaps particularly the amateur), we find that more of our portfolio is not on the stove.
  • Provisions of combining all the 6 partnerships makes a mention in this letter. Not that there is a learning for me here. He and his wife hold maximum stake in the combined entity, minimum investment is a paltry $25,000.
  • Not much investment knowledge in this letter other than the quote above.


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