Highlights of the July 1961 letter:

http://www.ticonline.com/buffett.partner.letters/1961.07.22.pdf

notes that a 1x a year letter is infrequent and moves to a 2x a year format

DJIA up 13% YTD including dividends, and partnership outperformed, despite the fact that partnership will be least likely to out perform an up tape

Emphasizes that 1 year is too short of a period to think about investments, and 6 months is even worse. He thinks in terms of five year performance.

As the market goes up, he attempts to have more of the portfolio insulated from the market through work outs – “as the market boils with appetizing results for even amateur cooks (and perhaps particularly the amateur), we find that more of our portfolio is not on the stove”

Have begun buying a major commitment which he hopes does nothing for at least a year… this may of course hurt short term performance, but should help superior results over a several year period.

Various partnerships to merge into 1

Discussion of the fee structure of the partnerships Most notably: structure that would have LPs take 100% of the first 6% of any gains, and 75% of any gains above 6% with a high water mark set at the beginning of the year