This episode is about letters from Warren Buffett of Buffett Partnership, Ltd. (BPL) to his partners, detailing the partnership’s investment performance and philosophy during 1966 and the first decade of operation. The July 1966 letter provides an interim performance report, noting the Dow's decline in the first half of the year while the partnership achieved an "abnormal" gain of 8.2%, and discusses the acquisition of Hochschild, Kohn & Co., a privately owned department store. The January 1967 letter reviews the full 1966 performance and the first decade of BPL, highlighting that BPL vastly outperformed the Dow and major investment funds, while also explaining the decreasing availability of attractive investment opportunities and reaffirming his commitment to a disciplined, long-term valuation-based approach rather than market forecasting. Both letters include detailed tables comparing BPL’s results against the Dow-Jones Industrial Average and various investment companies.