It turns out that the Dow Jones Industrial Average went up again in 1959. A total return of 19.9% in fact. But then, as now, the index was misleading. Despite the index being up that much, Buffett tells us that 710 stocks were down that year, compared to only 628 that were up. Institutional fund managers largely under-performed, and blamed it on sentiment-driven buyers in the markets. So far, sounds pretty familiar!
Buffett Partnership Letters - 1959
Buffett Partnership Letters - 1959
Buffett Partnership Letters - 1959
It turns out that the Dow Jones Industrial Average went up again in 1959. A total return of 19.9% in fact. But then, as now, the index was misleading. Despite the index being up that much, Buffett tells us that 710 stocks were down that year, compared to only 628 that were up. Institutional fund managers largely under-performed, and blamed it on sentiment-driven buyers in the markets. So far, sounds pretty familiar!