It is hard because the space is crowded with people who are smarter and have more insight and more time than I do. Also, it is risky because I am not a young person starting out. If I was starting out in my twenties and had a small pot of savings I could do this. I can give it a try and possibly make it the start of a great career. And if I fail at it, no real harm I have plenty of time to recover and find my niche. But I am not twenty and I cannot take an excessive risk of failure. So I must choose a path that is more proven and which makes my abilities less of a factor in the method to success.
This is the reason I've settled on the more Ben Graham's cigar-butt type of investing. Ben Graham was Buffett's early mentor and the Graham's partnership ended when Buffett's partnership was just starting out. So both Graham and Buffett ran partnership's in the same era. And during that era both were looking at cigar butts. But while the mentor was beating the market by around 2% per year, the student, in his own words, "Killed the Dow". I think Buffett did better because he thought more about the quality of businesses. So, I think the opportunity for the least work with the least intelligence with the maximum payoff is to do what Warren Buffett did in the 50's and early 60's.
To do this I need to start with as much information about the investments as possible. This post lists sources of information for Buffett Partnership (BPL) investments of the 50s and early 60's. A copy of Warren Buffett's list of his 1962 BPL investments is displayed in the book Of Permanent Value by Andrew Kilpatrick. I want to get coverage on 75% of the 1962 BPL's total equity by the time I am done.
This list is a work in progress. Enjoy!
Stock | year | Description | Source / Link |
---|---|---|---|
GEICO | 1952 | He called GEICO his first love | Buffett writeup |
Western Insurance Securities | 1952 | Buffett sold GEICO to buy Western, which was even cheaper on paper | Buffett writeup |
Genessee Valley Gas | 1953 | bovinebear blog | |
Union Street Railway | 1956 |
compoundingmachines
The Snowball by Alice Schroeder | |
Sanborn Maps | 1961 | Workout situation; Buffett bought company to unlock its stock portfolio |
csinvseting case study
The Snowball by Alice Schroeder |
Berkshire Hathaway | 1962 | A pretty soggy cigar butt (2.4% of partnership) | compoundingmachines |
Dempster Mills | 1962 | Control situation (23.0% of partnership) | csinvseting case study |
British Columbia Power | 1962 | Workout situation, recommended by Munger (11.2% of partnership) |
bovinebear blog
The Snowball by Alice Schroeder |
Texas National Petroleum | 1962 | (5.7% of partnership) |
Trade Like Warren Buffett by James Altucher |
Stanrock Uranium Ltd. | 1962 | Workout situation (5.0% of partnership) | bovinebear blog |
Young Spring & Wire Corp | 1962 | (5.0% of partnership) | compoundingmachines |
Grinnell Corp | 1962 | (2.9% of partnership) | bovinebear blog |
Crane Co. | 1962 | (2.1% of partnership) | bovinebear blog |
Black, Sivalls & Bryson, Inc. | 1962 | (1.8% of partnership) | compoundingmachines |
Alco Products | 1962 | (1.0% of partnership) | bovinebear blog |
Hartford Fire Insurance, INS | 1962 | (-2.4% of partnership) | bovinebear blog |
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