Warren Buffett's Ground Rules

Words of Wisdom from the Partnership Letters of the World's Greatest Investor

Framework

by

Jeremy C. Miller

2016

2016

This framework distills the principles Warren Buffett applied at his investment partnership, Buffett Partnership Ltd., from 1956 to 1969. During this period, he delivered exceptional returns without a single down year. Each chapter focuses on a core investing principle, illustrated with excerpts from his partnership letters. The book also explains the three strategies he used: Generals—buying undervalued securities, Workouts—profiting from merger arbitrage, and Controls—taking majority ownership to influence a company’s direction.

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Jermaine's Notes

August 2025

Buffett navigated the Nixon era by sitting it out. Closed the partnership in 1969. Detailed his logic for closing. Good details on partnership structure and LP terms. Investing methods changed over time, principles didn’t. Useful chapter on taxes—goal is the largest after-tax compound rate. Letter explaining municipal bonds to LPs was helpful. Read 2016 hardcover.

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