The Buffett Partnership outperformed the DOW again...The partnership returned over 20% versus the DOW's return of a minus 15%...The partnership is rolling...This is the tenth year and the partnership has beaten the DOW every year and in total by a convincing annual margin of 20%...
The four investment companies of Massachusetts Investment Trust, Investor's Stock, Lehman Corporation, and Tri-Continental have just about been in line with the DOW's average return of 8.3%...Only Lehman has beat the DOW over the ten year period and Lehman's return was 9.1%...
The partnership is now over $54 million in assets...Warren again talks about not following the herd when one is investing...He also plans on avoiding companies where a human problem has the potential of existing or developing...
The results of the partnership were outstanding...
The Controls are $17.3 million gaining $1.6 million for a return of over 9%...
The Generals private owners are are $1.4 million gaining $1.0 million for a return of over 73%...
The Generals undervalued are $21.8 million gaining $5.1 million for a return of over 23%...
The Workouts are $7.7 million gaining $1.7 million for a gain of over 22%...
Miscellaneous Securities total $1.3 million had a de minimis loss...
Although not mentioned American Express, bought after the salad oil scandal is the largest holding and was up to 40% of the portfolio...Warren says one holding was the largest holding ever in the partnership and has outperformed the market in 1964-66...
Warren Buffett Stocks.: No stocks, by name are mentioned in the report...But Warren comes CEO of Diversified Retailing in 1966...
What can we learn:
Warren again outperforms the DOW, now ten years straight...
All the categories Warren uses outperforms the DOW...
Warren focuses on a nontraditional diversification, by holding up to 40% of one stock in the portfolio...The stock is not mentioned, but we learn later it is American Express, hurt by a scandal...
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