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Lazy Sunday question


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Here is a lazy Sunday question (to answer I should look through all of Buffett's early partnership letters myself but I have not, hence "lazy Sunday")


In the early years, did Buffett have look for catalysts in his investments? I think he did not, but I am putting the question out to the collective minds of the Corner!  The subsequent question would be, if he did not, was that a wise decision.  (In answering that question, let's just assume that his early capital was stable, which it seemed to be.)

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I believe he had a category called work-outs.


They usually worked out over a defined time frame.


Our second category consists of “work-outs.” These are securities whose financial results depend on corporate

action rather than supply and demand factors created by buyers and sellers of securities. In other words, they are

securities with a timetable where we can predict, within reasonable error limits, when we will get how much and

what might upset the applecart. Corporate events such as mergers, liquidations, reorganizations, spin-offs, etc.,

lead to work-outs. An important source in recent years has been sell-outs by oil producers to major integrated oil


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  • 4 weeks later...

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