A Summary of the Main Idea of
Warren Buffett's Ground Rules
Words of Wisdom from the Partnership Letters of the World's Greatest Investor
In order to make sure his partners understood his investment methodology and thought processes, Warren Buffett wrote up seven ground rules for his new partnership. He also wrote semi-annual letters (33 in all) to his small group of partners to explain how he was applying those ground rules on an ongoing basis.What's interesting about these ground rules is when Warren Buffett liquidated Buffett Partnership Ltd. and moved on to becoming chairman of Berkshire Hathaway, he continued to apply the same ground rules albeit to a much larger pool of capital. They have been described as Warren Buffett's take on Investing 101.
These ground rules are still the guidelines he uses as the world's most successful investor. They are the bedrock of his success and are the rules every investor needs today. Warren Buffet's ground rules epitomize the mindset every aspiring investor should have.