The Lost Buffett Letters

by StockJockey

Monday, August 04, 2008 - 2:41 pm

I am no great Buffett-ologist. And I don't consider myself to be a value investor by any means.

And while I don't have a tipline, I do have scores of relationships that date back nearly 20-years. From time to time I pass along things of interest, and Warren Buffett's very first partnership letter, written when Eisenhower was President, and the twenty that follow are apparently hard to come by:

2/11/59

A friend who runs a medium-sized investment trust recently wrote: "The mercurial temperament, characteristic of the american people, produced a major transformation in 1958 and "exuberant" would be the proper word for the stock market, at least".

I think this summarizes the change in psychology dominating the stock market in 1958 at both the amateur and professional levels. During the past year, almost any reason has been seized upon to justify "investing" in the market. There are undoubtedly more mercurially-tempered people in the stock market now than for a good many years and the duration of their stay will be limited to how long they think profits can be made quickly and effortlessly. While it is impossible to determine how long they will continue to add numbers to their ranks and thereby stimulate rising prices I believe it is valid to say that the longer their visit, the greater the reaction from it. Warren Buffett

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Would Becky Quick would hit that?
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I make no attempt to forecast the general market-my efforts are devoted to finding undervalue securities. However, I believe that widespread public belief in the inevitability of of profits from investment in stocks will lead to eventual trouble. Should this occur, prices, but not intrinsic values in my opinion, of even undervalued securities can be expected to be substantially affected.

The interest in the letters might stem from the fact that they have not been published. I am not sure where the particular individual found them, but he added:

After years of searching , someone has finally posted warren buffetts original partnership letters online This is most relevant because this is how he actually ran his hedge fund when it was small.

Yes, Warren Buffett’s assets under management used to be modest.

In any case, if you want the link to the letters, which cover nearly twenty years ending in 1969, send me an email describing in ten words or less why 1440 is the best financial blog extant, or if you don’t believe that, why I am a douchebag. Be forewarned, the letters will take hours to read in their entirety.

Respectfully yours,

StockJockey
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Apparently they have been up for some time on the net; the money manager who sent it to me said people would zealousy guard the letters years ago and refuse to share them, locking them away in a safe. Crazy...but they are out there for all to read. Spread them around.

Good reading, highly recommended. Check em out..

Buffett Partner Letters

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