A letter a day!
Letter # 21 1969
Key learnings:
- This letter (to my surprise) is a declaration by Buffett to retire. He has listed varied reasons for doing so
“However, it seems to me that: (1) opportunities for investment are open to the analyst who stresses quantitative factors have virtually disappeared, after rather steadily drying up over the past twenty years; (2) our $100 million of assets further eliminates a large portion of this seemingly barren investment world, since commitments of less than about $3 million cannot have a real impact on our overall performance, and this virtually rules out companies with less than about $100 million of common stock at market value; and (3) a
swelling interest in investment performance has created an increasingly short-term oriented and (in my opinion) more speculative market.”
- As you continuously outperform the markets or provide better returns than the top mutual funds, there is the highest amount of possibility of receiving a heavy inflow of funds. At this time, if you don’t find relevant investment opportunities, the same will be frustrating.
“As long as I am “on stage”, publishing a regular record and assuming responsibility for the management of what amounts to virtually 100% of the net worth of many partners, I will never be able to put sustained effort into any non-BPL activity. If I am going to participate publicly. I can’t help being competitive. I know I don’t want to be totally occupied with out-pacing an investment rabbit all my life. The only way to slow down is to stop.“
There is a saying you are not investing if you find it exciting. it is more often boring and requires a lot of patience. Many do not perceive fund management as a full-time job, to me it appears more than a full-time job. Why? Because you have the responsibility to manage people’s lifelong savings and not create wealth but ensure its protection. It’s tough. Who imagined Buffett would have also gotten frustrated at some point in his life? (Though at 92 today he is still doing the same thing) Everyone goes through this!
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