The 1961 annual letter is quite a gem. The letter gives us a glimpse of several aspects of Buffett's philosophy on investing, including the more practical aspects like portfolio construction, etc. As always, in the annual letter for 1961, Buffett starts out with a report on the performance of the Dow Jones Industrial Average. It is hard for me to imagine a world when this was the sort of information you'd need to get from your investment manager, once a year! Anyway, the funds handily beat the index. He also takes great pains to document how the performance of the funds has been over the five years they were in operation. After fees, the funds compounded at 23% per annum. In comparison, the index returned 11.75% per annum. Quite a lead.
Buffett Partnership Letters - 1961 Annual Letter
Buffett Partnership Letters - 1961 Annual…
Buffett Partnership Letters - 1961 Annual Letter
The 1961 annual letter is quite a gem. The letter gives us a glimpse of several aspects of Buffett's philosophy on investing, including the more practical aspects like portfolio construction, etc. As always, in the annual letter for 1961, Buffett starts out with a report on the performance of the Dow Jones Industrial Average. It is hard for me to imagine a world when this was the sort of information you'd need to get from your investment manager, once a year! Anyway, the funds handily beat the index. He also takes great pains to document how the performance of the funds has been over the five years they were in operation. After fees, the funds compounded at 23% per annum. In comparison, the index returned 11.75% per annum. Quite a lead.