Buffett's Early Investment Performance Was Driven By Activism

Warren Buffett’s investment strategy has changed over the years. From a deep-value nets-nets investing methodology to today’s, quality at a reasonable price philosophy, Buffett’s portfolio has undergone several changes. But in the early days of Buffett’s partnerships, the then undiscovered Oracle of Omaha used an activist strategy to get results, the use of which allowed him to make big bets with a highly concentrated portfolio. Indeed, reading through Buffett’s early partnership letters to shareholders (mid 50’s to late 60’s), almost all of the investment examples he gives are activist situations. He often devoted around a fifth or more of assets…