February 2, 2005

Evolution of a Genius - The Warren buffet partnership letters

I have been reading the buffet partnership letters. One of the board members from the MSN - BRK boards emailed the letters to me. I had been looking out for these letters as they cannot be downloaded directly.

I knew of the superb performance of the partnership and was keen on going through these letters as they would give me an idea of how warren buffet has evolved into the greatest investors of all time

What struck me was the clarity of thought, a regular and clear communication of the partnership's mode of operation and clear setting of expectations from the partnership .

There are a few things which struck me as warren buffet's core operating belief which one can see in the later years in his BRK letters

- Warren buffet stresses repeatedly on the long term performance (and long term focus) v/s a short term focus
- circle of competence : focussed on investing in undervalued stocks , workouts - arbitrage , and control situation. These themes evolved into Berkshire hathaway ( control ) and the equity portfolio ( undervalued stocks )
- refusal to predict the stock market and trying to profit from it - warren buffet talks about it right from the time he started the partnership.

As i read the letters from 1957 onwards , i could see the letters increase in length (maybe warren buffet wanted to share his mode of working with the partners as the partnership grew), more discussion on his thought process ( and thenbuffet jokes / wit appearing more often )

i am still halfway through the letters and finding them very interesting

1 comment:

Vidyanshu said...

Hi Rohit,

You can find them here -