A Horrible Year. 2011 YTD end of Q3.
Jae Jun of Old School Value Blog gives us a very honest update on his portfolio performance.
The following is a quote by Buffett on measuring performance:
While I much prefer a five year test, I feel three years is an absolute minimum for judging performance. It is a certainty that we will have years when the partnership performance is poorer, perhaps substantially so, than the Dow. If any three year or longer period produces poor results, we all should start looking around for other places to have our money. An exception to the latter statement would be three years covering a speculative explosion in a bull market.
a. Our investment will be chosen on the basis of value, not popularity.
b. That we will attempt to bring risk of permanent capital loss (not short term quotational loss) to an absolute minimum by obtaining a wide margin of safety in each commitment and a diversity of commitments; and
c. my wife and I will have virtually our entire net worth invested in the partnership
