Reading the Letter to Partners of Buffett Partnership 20 Feb 1960

Like last year letter, Buffett write about general stock market outlook in the beginning of letter. He commented overall gain 19.9% (included dividend received) of Dow-Jones Industrial Average stock index doesn't not represents performance of stocks listed in New York Stock Exchange as it was declined from 710 to 628.

He further emphasize on his conservatism of investment philosophy:

I would rather sustain the penalties resulting from over-conservatism than face the consequences of error, perhaps with permanent capital loss.

Most investment trusts had difficult time in comparison with Industrial Average, but Buffett Partnerships still achieved overall gain averaging about 25.9%.

In this year letter, Buffett didn't disclosed the company name of largest holding of the partnership besides it increase to represents 35% of assets. But he did mentioned about the company operation and the reasoning for unusually large percentage of holding:

This company is partially an investment trust owning some thirty or forty other securities of high quality. Our investment was made and is carried at substantial discount from asset value based on market value of their securities and a conservative appraisal of the operating business.