Three years minimum for judging performance
“While I much prefer a five-year test, I feel three years is an absolute minimum for judging performance.”
Investing
Warren Buffett's 1962 letter to Buffett Partnership partners, one of the letters in Buffett Partnership Letters, 1957–1970.
He does not predict market swings
“I am not in the business of predicting general stock market or business fluctuations. If you think I can do this, or think it is essential to an investment program, you should not be in the partnership.”
Investments chosen on value, not popularity
“Our investments will be chosen on the basis of value, not popularity;”
Live long or compound well
“[Compounding calculations] illustrate the value of either living a long time, or compounding your money at a decent rate. I have nothing particularly helpful to say on the former point.”
With control, assets matter more than quotes
“When control of a company is obtained, obviously what then becomes all-important is the value of assets, not the market quotation for a piece of paper (stock certificate).”
Order of good and bad years matters little
“I haven’t any notion as to the sequence in which [plus and minus years] will occur, nor do I think it is of any great importance for the long-term investor.”