Thursday, March 13, 2014

Warren Wednesdayish: H1 1962

A rather uninspiring letter but it does only cover half a year and they all can't be groundbreaking works of financial wisdom...

H1 1962
Written: July 6, 1962
Length: 7 pages
DOW return for H1 1962: -21.7%
Buffett's return for H1 1962:  -7.5%
Major events: The U.S. Navy Seals are created.

Bob Dylan releases his debut album

Warren starts of this letter with reprinting his prediction warning from a previous letter. Essentially reminding everyone that he doesn't make predictions and that he doesn't expect to beat the Dow every year. When it drops he does plan to do better then a rising market.
What is new this time around is that he mentions his declining market goal of only losing 0.5% for every 1% loss in the Dow which he beat this time around.

He again discusses how large funds are doing as way of comparing himself and the Dow to other professional money managers.

The next sectional really has to make you wonder about where his partners are right now. He mentions people taking monthly payments and others taking 6% annually out of their partnerships. Wonder how much that set people back vs the potential of being billionares. I'm sure they still did good assuming they staid with Warren.

Warren must be getting popular as his lawyers advice him to take on only another dozen new people and the entrance fee is raised to $100,000

Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial adviser, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

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