A letter a day!
Day 2
Warren Buffett’s letter from the year 1958.
Key learnings:
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Giving due importance to intrinsic values while making decisions.
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Buffett explained that a reason for sharp gains in the market was mostly a display of exuberance i.e over excitement amongst market players.
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A point to note in this letter is ” I make no attempt to forecast the general market – my efforts are devoted to finding undervalued securities”.
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He clearly explains a portion of assets is still invested in securities whose prices will not be much impacted by the fast-rising market.
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If you are a fund manager here is a learning for you “. Very small buying orders can create price changes of high magnitude in an inactive stock, which explains the importance of not having any “Leakage” regarding our portfolio holdings.”
Please feel free to share your own learnings too.
A letter a day(WB1958)_Aashka Trivedi.pdf (155.0 KB)
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