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question buffett partnership letter 1969


rijk
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"The cash register really rang on one simple industry idea (implemented in several ways) in this area in 1968.  We even received a substantial fee (included in Other Income in the audit) for some work in this field."

 

Any idea what the industry idea might have been?  Just curious, couldn't find anything on the Internet.

 

regards

rijk

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Sanborn was earlier - early 60's.  While Buffett didn't ever disclose the idea specifically, the timing would suggest that the simple industry idea was that Trading Stamp companies had insurance like float.  The "time had come" probably refers to the settling of Blue Chip's lawsuits with the Department of Justice and competitor S&H Green stamps.  This resulted in large blocks of Blue Chip stock being distributed to grocers, which Buffett and Munger accumulated.

 

So my guess, based on the classification as a "General - private owner" in his letter, and the timing and magnitude is that he was referring to Blue Chip.

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Or maybe not...  I could have guessed wrong in the above post.  I really could have been just a one time Graham type cigar butt trade.  (whatever produced this specific gain appears to have been sold by year end, indicating it probably wasn't Blue Chip)

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