By 1969, however, Warren discovered that the raging bull market of the late sixties had produced a vastly overbought, and thus overpriced, stock market. He also saw that in this environment it was impossible to practice the value-oriented investment style that was working so well for him and his partners. Perceiving this, he the new buffettology did something quite unorthodox. Warren informed his partners that because of the overpriced stock market he could not maintain the stellar results he had been providing, and instead of adopting a new investment strategy with which he was uncomfortable, he was closing down the partnership and returning their money. In liquidating the investment partnership Warren gave his investors the option of either cash or shares in the companies in which the partnership held an interest.
The New Buffettology Pdf
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