The General Stock Market in 1959:
The Dow-Jones Industrial Average, undoubtedly the most widely used index of stock market behavior, presented a somewhat faulty picture in 1959. This index recorded an advance from 583 to 679, or 16.47 for the year. When the dividends which would have been received through ownership of the average are added, an overall gain of 19.97% is indicated for 1959.
道琼斯工业指数，这个被最广泛用于代表市场表现的指数，在1959年没有很好的表现市场状况。该指数该年从583上涨到679，有16.47%的涨幅。当把当年的股利影响加权之后，1959年的总体涨幅应该在19.97%。
Despite this indication of a robust market, more stocks declined than advanced on the New York Stock Exchange during the year by a margin of 710 to 628. Both the Dow-Jones Railroad Average and Utility Average registered declines.
尽管指数显得市场强劲，纽约证交所里的股票跌得却比涨得多，比数是710:680. 道琼斯铁路平均指数和道琼斯公共事业平均指数双双下跌。
Most investment trusts had a difficult time in comparison with the Industrial Average. Tri-Continental Corp., the nation's largest closed-end investment company (total assets $400 million) has an overall gain of about 5.7% for the year. Fred Brown, its President, had this to say about the 1959 market in a recent speech to the Analysts Society:
众多投资机构今年业绩都逊于工业平均指数。Tri-Continental 公司，全国最大的封闭式投资公司（总资产达4亿美金）年投资回报率为5.7%。公司主席Fred Brown在最近一次分析师大会上如此评价1959年的市场：
“But, even though we like the portfolio, the market performance of Tri-Continental's holdings in 1959 was disappointing to us. Markets in which investor sentiment and enthusiasm play so large a part as those of 1959, are difficult for investment managers trained in values and tuned to investing for the long-term. Perhaps we haven't had our space boots adjusted properly. However, we believe that there is limit to risks that an investing institution such as Tri-Continental should take with its stockholders's money, and we believe that the portfolio is in shape for the year ahead.”
“尽管我们对投资组合很满意，Tri-Continental在1959年的表现却让人失望。1959年的市场对于专注于长期投资和价值投资理念的投资经理很难，因为投资者的情绪和热情主导了市场。也许我们的太空鞋还没调整好（没准备一飞冲天？）。但是我们相信像Tri-Continental这样的投资机构不能用投资者的钱来承担过多的风险，同时我们相信我们的投资组合是很适合明年的市场”
Massachusetts Investors Trust, the country's largest mutual fund with assets of $1.5 billion showed an overall gain of about 9% for the year.
Massachusetts投资信托，有15亿美元的全国最大共同基金，当年有9%的收益。
Most of you know I have been very apprehensive about the general stock market levels for several years. To date, this caution has been unnecessary. By previous standards, the press level of "blue chip" security prices contains a substantial speculative component with a corresponding risk of loss. Perhaps other standards of valuation are evolving which will permanently replace the old standards. I don't think so. I may very well be wrong; however, I would rather sustain the penalties resulting from over-conservatism than face the consequences of error, perhaps with permanent capital loss, resulting from the adoption of a "New Era" philosophy where tree really do grow to the sky.
众所周知我已经对股票市场担忧好几年了。不过到现在为止，好像这种谨慎好像都是多余的。按照先前的标准，媒体所标榜的“蓝筹”股价格已经包含大量的投机因素从而导致价格大幅下跌的风险。也许其他的估值方法正在逐渐形成并会最终取代过去的标准。但我并不这么想。我也许是错的，但是我宁愿因为过于谨慎而交罚款，而不希望由于错误地接受“新时代”的哲学去相信树真的能涨到天上去，而导致永久性的资金损失。
Results in 1959:
1959年投资结果：
There has been emphasis in previous letters on a suggested standard of performance involving relatively good results (compared to the general market indices and leading investment trusts) in periods of declining or level prices but relatively unimpressive results in rapidly rising markets.
在之前的股东信中已经提到过我们的投资表现相比于一般市场指数和头部的投资信托机构，在市场下跌和盘整的期间要更好，但是在快速上涨的市场中就没有那么亮眼了。
We are fortunate to achieve reasonably good results in 1959. The six partnerships that operated throughout the year achieved overall net gains ranging from 22.3% to 30.0%, and averaging about 25.9%. Portfolios of these partnerships are now about 80% comparable, but there is some difference due to securities and cash becoming available at varying times, payment made to partners etc. Over the past few years, there hasn't been any partnership which has consistently been at the top or bottom of performance from year to year, and variance is narrowing as the portfolios trend to become comparable.
我们在1959年有幸获得了不错的回报，六个合伙公司通过一年的运作总体净收益从22.3% 到 30% 不等，平均达25.9%。这些合伙公司的投资组合现在有80%的相似，其中差别的原因主要是由于现金或者股票交易时间以及付给合伙人的资金的不同等等。在过去几年中，没有任何一个合伙公司的表现持续最好或者一直最糟糕，之间的差别越来越小，这主要是因为组合趋同。
The overall net gain is determined on the basis of market values at the beginning and end of the year adjusted for payments made to partners or contributions received from them. It is not based on actual realized profits during the year, but is intended to measure the change in liquidating value for the year. It is before interest allowed to partners (where that is specified in the partnership agreement) and before any division of profit to the general partner, but after operating expenses.
总体净利润是根据年初和年末的市场价值并根据给合伙人的回报以及他们的投入进行调整的。并不是基于一年中实际获利而是通过这一年公司清算价值的改变来计算的。总体净利润计入了付给合作伙伴的利息（按照合伙协议）以及给一般合伙人的分成，但是扣除了运营费用。
The principal operating expenses is the Nebraska Intangibles Tax which amounts to .47% of market value on practically all securities. Last year represented the first time that this tax had been effectively enforced and, of course, penalized our results to the extent of .47%.
运营费用的计量准则基于Nebraska无形资产税，对几乎所有的股票都按照股票市值征收0.47%。去年是该项税收第一年执行，因此这也直接导致把我们投资收益拉低了0.47%。
The Present Portfolio:
当前的投资组合：
Last year I mentioned a new commitment which involved about 25% of the assets of the various partnerships. Presently, this investment is about 35% of assets. This is an unusually large percentage, but has been make for strong reasons. In effect, this Company is partially an investment trust owning some thirty or forty other securities of high quality. Our investment was made and is carried at substantial discount from asset value based on market value of their securities and conservative appraisal of the operating business.
去年我提到一笔占到我们总资产25%的新投资。目前该项投资占比约35%。这个是个不同寻常的高占比，但却非常合理。实际上，这家公司有一部分从事投资信托的业务拥有差不多30-40家优质公司的股票。根据它们所持股票的市场价值以及保守估计它们主要业务的实际价值之后，我们在其市场价格大打折扣的时大举投资。
We are the Company's largest stockholder by a considerable margin, and the two other large holders agree with our idea. The probability is extremely high that the performance of this investment will be superior to that of the general market until it's disposition, and I am hopeful that this will take place this year.
我们是该公司最大的股东，其他两位大股东也赞成我们的想法。这笔投资的收益非常将可观，同时该项投资的表现必将优于市场直到公司合并，而且我希望这在今年就发生。
The remaining 65% of the portfolio is in securities which I consider undervalued and work-out operations. To the extent possible, I continue to attempt to invest in situations at least partially insulated from the behavior of the general market.
剩余的65%的投资组合放在了我认为低估的股票和套利操作。在可能的范围内，我继续尝试至少部分隔绝于市场行为的情形下投资。
This policy should lead to superior results in bear markets, and average performance in bull markets. The first prediction may be subject to test this year since, at this writing, the Dow-Jones Industrials have retraced over half of their 1959 advance.
这项投资策略会在熊市带来优于市场的收益并且在牛市中和市场持平。第一段预言（熊市？）也许说的就是今年，在写这封信的时候，道琼斯工业指数已经回吐了1959年涨幅的一半。
Should you have any questions or if I have not been clear in any respect, I would be very happy to hear from you.
如果有任何问题或者我有任何表述不清楚的地方，希望能够指出，期待你们的回信。
Warren E. Buffett
2-20-60
后记： 巴菲特合伙公司今年市值 = （去年）$2400万*(1+0.259)=$3021.6 万
