- During the past year, almost any reason has been seized upon to justify "investing" in the stock market. There are undoubtedly more mercurially-tempered people in the stock market now than for a good many years and the duration of their stay will be limited to how long they think profits can be made quickly and effortlessly.
- I make no attempt to forecast the general market--my efforts are devoted to finding undervalued securities.
- It is obvious that we could still be sitting with a $50 stock patiently buying in dribs and drabs, and I would be quite happy with such a program although our performance relative to the market last year would have looked poor.
- ...our performance for a single year has serious limitations as a basis for estimating long term results. However, I believe that a program of investing in such undervalued well protected securities offers the surest means of long term profits in securities.
- Such a policy should lead to the fulfillment of my earlier forecast--an above average performance in a bear market or neutral market, and a normal performance in a bull market. It is on this basis that I hope to be judged.
Adam
* Written in early 1959 by Buffett to discuss the previous year's performance. Copies of all the Buffett Partnership Letters can be found here.
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