At What Age Did Buffett Start His Partnership?
At what age did Buffett start his partnership?
Warren Buffett, widely regarded as one of the most successful investors of all time, started his partnership at a relatively young age - just 25 years old.
Known for his exceptional business acumen and long-term investment strategies, Buffett formed his first investment partnership in the 1950s and had a tremendous run focusing on a highly effective cigar butt strategy.
In fact, the Buffett Partnership strategy was a highly successful twist on Graham’s favorite net net stock strategy, and ultimately earned him the best returns in his career.
At What Age, and When Did Buffett Start His Partnership?
As mentioned, Warren Buffett started his partnership at the age of 26, in 1956.
He established the Buffett Partnership Ltd. which operated for over a decade, until Buffett dissolved it in 1969.
During this time, Buffett achieved significant success and built a reputation as a skilled investor. The Buffett Partnership made Warren Buffett a millionaire by 1962. In spite of this, Buffett announced four years later that he was no longer accepting new partners.
Warren Buffett continued to run the partnership after this announcement, and he continued to crush the stock market. Buffett's best year was 1968 when the Buffett Partnership returned 58.8% against 7.7% for the Dow. Luckily for investors, Buffett distributed detailed Buffett Partnership letters which provide details on his exact strategy and thinking for those looking to beat the market.
By 1969, $100,000 invested in the Buffett Partnership in 1962 would be worth $1,719,481. The Dow would have only grown an equivalent investment to $252,467 over the same period. Over the past decades, Buffett earned a compound annual return of 24.5% (29.5% before fees). How much did the Dow return over the same time period with dividends? A mere 7.4%.
How Did Warren Buffett Start His Partnership?
Warren Buffett started his partnership in 1956 by forming a limited partnership with seven initial investors – namely, his mother, sister, aunt, brother-in-law, father-in-law, college roommate, and lawyer.
Buffett's partnership initially had a capital of $105,100. The remaining capital came from friends and family members, including his sister Doris. Despite the relatively small amount of capital, Buffett's investment track record and reputation attracted investors who were willing to entrust their money to him.
Article image (Creative Commons) by Taylor Nicole, edited by Net Net Hunter.
