Warren Buffett Partnership Letters (1958-1970)

Here are all of Warren Buffett's partnership letters starting in 1958:

Warren Buffett Partnership FAQ

When did Warren Buffett start his partnership?

Warren Buffett’s first partnership, Buffett Associates, Ltd., began in the middle of 1956, with 7 partners and a total of $105,100 in assets under management, of which Warren contributed $100. His first partnership included 7 limited partners, who were mostly relatives, and friends.

Warren Buffett's partnership fee structure

Warren Buffett's partnership fee structure prior to 1958 was slightly different and was eventually changed.

Warren Buffett’s partnership fee structure prior to 1958

• Limited partners were guaranteed interest of 4%, no matter how the partnership’s portfolio performed, and Warren Buffett would personally guarantee that interest.
• There was no management fee charged.
• The performance fee was 50%, which meant that any profits would be split between the limited partners and the general partner - Warren Buffett.

Warren Buffett’s partnership fee structure post-1958

• No management fee.
• Warren Buffett personally guaranteed 25% of any losses.
• The performance fee was 25% of the returns above 4%.

Warren Buffett’s partnership fee structure was nothing like the fees funds charge today. There was no yearly management fee, and he took 25% of the profits if the partnership returned over 6% a year. Additionally, Warren Buffett vowed to cover 25% of any potential losses the partnership might have, which shows you how confident he was in his own ability to manage the funds. 

Warren Buffett partnership returns

Warren Buffett’s partnership returns were nothing short of amazing, having been able to not have a single down year, and beating the Dow consistently.

How long did Warren Buffett run his partnership?

Warren Buffett ran his partnership from mid-1956 to 1969, when he eventually closed the partnership and turned his attention to Berkshire Hathaway.

What was the first Warren Buffett letter published?

The First Warren Buffett letter was sent out to limited partners in 1958, detailing the performance of the partnership in 1957.