pARTNERSHIP LETTERS

I cannot promise results to the partners, What I can do and do promises that 



For the first 5 Million of the fund, I will partner and match 20% to the partnership. For the next 5 Million I will be able to match 10% to the partnership. You know that I will match all my net worth to this partnership.

While I prefer a Five Year Test, I feel three year is an absolute minimum for judging performance. It is a certainty that we will have years when the  partnership performance is poorer, perhaps substantailly so, than the DOW or S&P. If any three year  or longer period produces poor results, we all should start looking around for other places to have our money.  An exception to the latter statement would be three years covering a speculative explosion in bull market ( like the years from 2019-2022)

Whether we do a good job or a poor job is not to be measured by whether we are plus or minus for the year. It is instead to be measured against the general experience in securities as measured by Dow Jones industrial average , leading investment companies, etc. If our record is better than that of these yardsticks, we consider it a good year whether we are plus or minus. if we do poorer, i deserve tomatoes.

I will be wrong. I will be wrong at least in 2 out of 8 picks, 25%. These 2 can be the first ones too. But if we have home runs in 6, we will be doing fine.  But my rules will be 1. NEVER LOSE MONEY 2. Remember Rule 1. Now that with our money, instead of just my own money, I will stay more careful. 

You only have to do a very few things right in your life so long as you don't do too many things wrong.


I will never do day trading or trading options. It will always be stocks for long term. There could be situatons like Buffet bought Activision Blizzard ATVI for arbitrage. Or situation like Buffett bought Taiwan Semiconductor but sold it back for some reason within a month. So except for such reasons, most investments will be for long term.

Derivatives are financial weapons of mass destruction.

 Warren Buffett