In this episode, we look at Warren Buffett’s 1962 partnership letter and the early framework behind his investing style.

Buffett was still deeply influenced by Ben Graham, but you can already see him evolving. He breaks down the partnership’s investments into generals, workouts, and controls, discusses the power of compounding, and explains why true conservatism comes from facts, reasoning, and price — not from simply owning blue-chip stocks.

This episode also covers Dempster Mill, one of Buffett’s key control investments, and how it helped teach him the power of capital allocation.