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Warren Buffett First Partnership Agreement

Most of my partners know that Ikkurty Capital was modeled according to Warren Buffett`s initial partnership, which was eventually liquidated, and his ownership of a textile factory led to the creation of Berkshire Hathaway as we know it today. Many friends have asked about the history of this partnership. This led me to write in more detail about this partnership. Even as his partnerships grew, Buffett worked with a limited capital base. Although several million dollars were much more money in the early 1960s than it is today, it was still small enough to operate as a single investor today in Deep Value and Net Net stocks. 1956 Until the end of 1956, Buffett had five small partnerships of $500,000, invested in all together. Buffett had net liquid assets of $140,000 in 1956. He put $100 into his first partnership. As a goal, Buffett set out to beat the DJIA by an average of 10% per year.

At the age of 25, Buffett was ready to start his own business. Buffett returned to his hometown, and with only $105,000 in capital from family and friends, he founded his first fund, Buffett Partnership Ltd. Warren Buffett is, of course, in Category 1 of 10. As CEO of Berkshire Hathaway and as investment manager for the Buffett partnership, Buffett has ALWAYS put the interests of his shareholders first. This becomes clear when you read one of his letters. And it`s pretty easy to see why he acts this way: he tied virtually all of his fortune in Berkshire Hathaway (and more than 90% of his fortune was in the Buffett partnership), so he`s also one of the greatest directors as well as the agent. Other investors are also his closest family and friends, which makes it even more important for Buffett to act in their best interests. 7.

I cannot promise results to partners. What I can and do is a. Our investments are chosen based on value, not popularity. b. that we will endeavour to minimise the risk of a sustainable capital loss (and not a short-term listing loss) by obtaining a significant margin of safety for each commitment and a large number of commitments; and c. my wife, children and I will have invested virtually all of our net assets in the partnership. . . .