Key Person

Benjamin Graham

Professor, Investor, Author of "The Intelligent Investor"

Since 1962•47 mentions•1 quotes

Buffett's mentor and the father of value investing. Graham taught Buffett at Columbia Business School and later hired him at Graham-Newman Partnership. Buffett credits Graham with teaching him the fundamental principles of investing: margin of safety,Mr. Market, and the difference between price and value.

Buffett on Benjamin

“Benjamin Graham taught us that the market is a mechanism for transferring wealth from the active to the patient — it offers prices daily, but only requires you to act when you want to buy or sell.”
1962

Letters Mentioning Graham

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First Half Performance — 1968

Mid-year report for 1968. BPL gained 16% vs Dow's 0.9% in the first half. Buffett warned this was partly concentrated positions creating volatility, and that the revised limited objectives remain the right frame for long-term evaluation.

Our Performance in 1968

1968 was the best year in BPL history — 58.8% overall gain vs Dow's 7.7%. Buffett called this a 'freak' result like picking up thirteen spades in bridge. Despite record performance, he warned that the partnership would be dissolved at yearend 1969 and outlined the reasons for his continued pessimism about finding undervalued opportunities.

Commitment Letter for 1968 — October 1967

The most famous partnership letter. Buffett announces a reduction in his performance target from '10 points better than the Dow' to '9% per annum or 5 points over the Dow.' Explains four reasons: fewer quantitative bargains, hyperactive markets, $65M capital base, and personal motivation. A candid self-assessment from age 37.

Our Performance in 1965

Annual letter reporting 1965 results: partnership gained 47.2% vs the Dow's 14.2%, the widest margin in BPL's history. The partnership took effective control of Berkshire Hathaway. Buffett reflects on compounding, critiques institutional investment management, and discusses the joys and challenges of operating increasingly large capital.

Our Performance in 1964

Buffett's 1964 annual letter written in January 1965. Partnership gained 27.8% vs the Dow's 18.7%, a 9.1 percentage point advantage. Discusses the Berkshire Hathaway takeover, the decision to end the partnership at yearend 1969, and the 'Year of Discipline' theme — specifically the importance of selling at the right price. Mentions Disney and American Express as lessons in opportunity cost.

Our Performance in 1963

Buffett's 1963 annual letter written in January 1964. The partnership gained 38.7% vs the Dow's 20.7%, a remarkable 18 percentage point advantage. The letter discusses American Express following the Salad Oil scandal, the Unisuper arbitrage trade, and compares performance against four major investment companies. Dempster Mill's operating assets were sold on a going-concern basis, with Harry Bottle celebrated for extraordinary value creation.