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We start this series of review of Warren Buffett’s letters with his second letter to partners of Buffett Partnerships that he wrote in 1957 (the first letter isn’t available).
Buffett was just 27 years of age when he wrote this letter to his partners. So you can imagine his level of understanding at an age when most people are clueless about the future and are instead lost in the world of revelry and merriment.
But Buffett had his priorities well set. By this time, he had already:
- Started and closed several small businesses (like selling chewing gum, Coca-Cola, weekly magazines, golf balls and stamps) that could earn him enough money to save and invest.
- Bought a farm using his investments.
- Accumulated more than US$ 90,000 in savings (measured in 2009 dollars).
- Filed his first income tax return…at the age of 14!
- Graduated with a Bachelor of Science in Business Administration (1949).
- Earned a Master of Science in Economics from Columbia (1951).
- Studied “Security Analysis” under Benjamin Graham and David Dodd (and earned the only A-Grade that Graham ever gave to any of his students).
- Read Graham’s The Intelligent Investor several times
- Worked as a securities analyst under Graham at Graham-Newman Corp. (1954-56).
He started Buffett Partnership Ltd. in 1956 after Graham retired and closed his partnership.
[Read more…] about Wit, Wisdom, Warren (Issue #1): Key Investing Principles