Last time, I reviewed lessons from Warren Buffett’s 1960 letter to partners of Buffett Partnership.
Today, I review the letter for 1961. Buffett wrote two letters during 1961 – once in July 1961 and then the annual letter in Jan. 1962. The first letter carried Buffett’s core rules for the partnerships. It was the annual letter where Buffett talked about his philosophy.
So I’m reviewing just the annual letter (written in Jan. 1962). From this time onwards, I’m also making a change in the way I analyse Buffett’s philosophy.
Given that I am reviewing the letters in a chronological order, I might write about a certain philosophy that Buffett followed in a particular year, which changed in subsequent years.
So, apart from analysing a particular year’s letter, I will try to cull out one specific theme from that letter and then see how that theme evolved for Buffett in the future.
Anyways, let’s start with the analysis of the 1961 letter.