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The Security Analysis Podcast

Brett Gardner: Buffett's Early Investments

Feb 5, 2025
Brett Gardner, author of "Buffett's Early Investments," dives into Warren Buffett's transformative years in the 50s and 60s, revealing the key strategies that led to extraordinary returns. He highlights Buffett's meticulous research, the significance of permanent capital, and the lessons learned from tough investments. Gardner shares the story behind Buffett's strategic move during the American Express scandal and his insightful Disney investment, showcasing Buffett's keen eye for value amid uncertainty.
52:09

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Quick takeaways

  • Brett Gardner's book focuses on Warren Buffett's remarkable 29.5% CAGR returns during his early partnership years from 1957 to 1969.
  • Buffett's investment strategy was highly active and involved direct influence over companies, countering the assumption of passive stock selection.

Deep dives

Buffett's Stellar Investment Returns

Warren Buffett achieved remarkable annualized returns during his partnership years, earning an impressive 29.5% compounded annual growth rate (CAGR) before fees, and around 23% after fees, with no down years recorded from 1957 to 1969. This extraordinary track record highlights a period where Buffett's investment acumen positioned him among the top investors of all time. According to Buffett, his early investing years prior to managing the partnership possibly yielded even higher returns, showcasing his evolving investment strategies. Brett Gardner’s analysis in 'Buffett's Early Investments' delves into the financial statements and decisions Buffett made during these years, illuminating the rationale behind his successful investments.

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