Warren Buffett

Warren E. Buffett is the founder and primary manager of the Buffett partnerships (later Berkshire Hathaway).

🧠 Philosophy (Early Years)

In the early partnership letters (starting in 1957 Letter), Buffett defines his role as finding Undervalued Securities and Work-outs.

Key Principles

• Benchmarking: He compares his performance against the Dow Jones Industrial Average, aiming to beat it by 10% per year over the long term.
• Market Timing: He explicitly states he does not attempt to forecast the market, focusing instead on individual business valuations.
• Patience: He is willing to allow a "fair proportion" of the portfolio to remain in a "sterile stage" (cash/unduly performing assets) while waiting for the right entry price.

🏢 Organizational Growth

• 810 Kiewit Plaza (1961): Buffett moved the partnership operation from his home to a dedicated office at 810 Kiewit Plaza, Omaha.
• Consolidation (1961): Merged various smaller partnerships into a single entity, Buffett Partnership, Ltd.
• Team: Hired Bill Scott as an associate and Beth Henley as secretary in 1961.

🔗 Connections

• Source: 1957 Letter
• Partner: Charlie Munger (Joined later)