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Warren Buffett's Investment Strategy
Buffett was offered to become a general partner in Graham's firm, but he turned it down and started his own partnership. He structured the partnership so that he got half of the upside above a 4% threshold, and he took a quarter of the downside himself. Warren met Charlie Munger in 1959 when Buffett was around 29 years old; they became friends almost instantly. In 1961, the partnership returned 46% versus the Dow's 22%.