I see in a lot of forums people requesting to take a gander at Warrenβs first investment partnership agreement. Well here it is by popular demand. Taken from Buffettology by Mary Buffett and David Clark. DISCLAIMER: The contents on this page is NOT legal advice!
CERTIFICATE OF LIMITED PARTNERSHIP
The undersigned hereby certify that they have this day entered into a limited partnership, and that:
I
The name of the partnership is: BUFFETT ASSOCIATES, LTD.
II
The character of the business to be carried on shall consist of the buying and selling, for the account of the partnership, of stocks, bonds and other securities, commodities and other investments.
III
The location of the principal place of business shall be Omaha, Douglas County, Nebraska.
IV
The General Partner is:
Warren E. Buffett
Omaha, Nebraska
The Limited Partners are:
Charles E. Peterson, Jr.
Omaha, Nebraska
Elisabeth B. Peterson
Omaha, Nebraska
Doris B. Wood
Omaha, Nebraska
Truman S. Wood
Omaha, Nebraska
Daniel J. Monen, Jr.
Omaha, Nebraska
William H. Thompson
Omaha, Nebraska
Alice R. Buffett
Omaha, Nebraska
hereinafter called collectively the limited partners.
V
The term for which this partnership is to exist begins on May 1, 1956 and ends on April 30, 1976, unless sooner terminated, as provided in the Partnership Agreement or as provided under the laws of Nebraska.
VI
The amount of cash contributed by each limited partner is as follows:
Limited Partners: Contributed Capital:
Charles E. Peterson, Jr. $5,000.00
Elisabeth B. Peterson $25,000.00
Doris B. Wood $5,000.00
Truman S. Wood $5,000.00
Daniel J. Monen, Jr. $5,000.00
William H. Thompson $25,000.00
Alice R. Buffett $35,000.00
VII
The limited partners have not agreed to make any additional contributions.
VIII
No time has been agreed upon, short of the terminating date of the partnership or the withdrawal of a limited partner from the partnership, for a return of the limited partnersβ contributions.
IX
The share of the profits or other compensation by way of income which each limited partner shall receive by reason of his contribution is as follows: Each limited partner shall be paid interest at the rate of 4% per annum on the balance oh his capital account as of December 31 of the immediately preceding year as shown by the Federal Income Tax Return filed by the partnership applicable to the said yearβs business, and said interest payments to be charged as expenses to the partnerships business. In lieu of a separate computation of interest for the period ending December 31, 1956, each limited partner shall be paid 2% of his original capital contribution, said payments to be charged as expenses of the partnership business for said period. In addition each of the limited partners shall share in the overall net profits of the partnership, that is, the net profits of the partnership from the date of its formation to any given point in time in proportions set opposite their respective names:
Charles E. Peterson, Jr. 1/42
Elisabeth B. Peterson 5/42
Doris B. Wood 1/42
Truman S. Wood 1/42
Daniel J. Monen, Jr. 1/42
William H. Thompson 5/42
Alice R. Buffett 7/42
X
A limited partner has no right to substitute an assignee as contributor in his place.
XI
No right is given the partners to admit additional limited partners.
XII
There is no priority among limited partners.
XIII
No right is given the remaining partners to continue the partnership business on the death, retirement or insanity of the general partner.
XIV
No right is given a limited partner to demand and receive property other than cash in return for his contribution.
Dated this 1st day of May, 1956.
In the presence of:
(Signatures)
Warren E. Bufftett
Charles E. Peterson, Jr.
Elisabeth B. Peterson
Doris B. Wood
Truman S. Wood
Daniel H. Thompson
Alice R. Buffett
ββββββββββββββββββββββββββββββββββββββ
And there it is! It's crazy how this simple contract would lead into a the economic juggernaut that is Berkshire Hathaway!
Carson for StockRip.com<---Ask as CEO a question and they respond personally to you via video.
CERTIFICATE OF LIMITED PARTNERSHIP
The undersigned hereby certify that they have this day entered into a limited partnership, and that:
I
The name of the partnership is: BUFFETT ASSOCIATES, LTD.
II
The character of the business to be carried on shall consist of the buying and selling, for the account of the partnership, of stocks, bonds and other securities, commodities and other investments.
III
The location of the principal place of business shall be Omaha, Douglas County, Nebraska.
IV
The General Partner is:
Warren E. Buffett
Omaha, Nebraska
The Limited Partners are:
Charles E. Peterson, Jr.
Omaha, Nebraska
Elisabeth B. Peterson
Omaha, Nebraska
Doris B. Wood
Omaha, Nebraska
Truman S. Wood
Omaha, Nebraska
Daniel J. Monen, Jr.
Omaha, Nebraska
William H. Thompson
Omaha, Nebraska
Alice R. Buffett
Omaha, Nebraska
hereinafter called collectively the limited partners.
V
The term for which this partnership is to exist begins on May 1, 1956 and ends on April 30, 1976, unless sooner terminated, as provided in the Partnership Agreement or as provided under the laws of Nebraska.
VI
The amount of cash contributed by each limited partner is as follows:
Limited Partners: Contributed Capital:
Charles E. Peterson, Jr. $5,000.00
Elisabeth B. Peterson $25,000.00
Doris B. Wood $5,000.00
Truman S. Wood $5,000.00
Daniel J. Monen, Jr. $5,000.00
William H. Thompson $25,000.00
Alice R. Buffett $35,000.00
VII
The limited partners have not agreed to make any additional contributions.
VIII
No time has been agreed upon, short of the terminating date of the partnership or the withdrawal of a limited partner from the partnership, for a return of the limited partnersβ contributions.
IX
The share of the profits or other compensation by way of income which each limited partner shall receive by reason of his contribution is as follows: Each limited partner shall be paid interest at the rate of 4% per annum on the balance oh his capital account as of December 31 of the immediately preceding year as shown by the Federal Income Tax Return filed by the partnership applicable to the said yearβs business, and said interest payments to be charged as expenses to the partnerships business. In lieu of a separate computation of interest for the period ending December 31, 1956, each limited partner shall be paid 2% of his original capital contribution, said payments to be charged as expenses of the partnership business for said period. In addition each of the limited partners shall share in the overall net profits of the partnership, that is, the net profits of the partnership from the date of its formation to any given point in time in proportions set opposite their respective names:
Charles E. Peterson, Jr. 1/42
Elisabeth B. Peterson 5/42
Doris B. Wood 1/42
Truman S. Wood 1/42
Daniel J. Monen, Jr. 1/42
William H. Thompson 5/42
Alice R. Buffett 7/42
X
A limited partner has no right to substitute an assignee as contributor in his place.
XI
No right is given the partners to admit additional limited partners.
XII
There is no priority among limited partners.
XIII
No right is given the remaining partners to continue the partnership business on the death, retirement or insanity of the general partner.
XIV
No right is given a limited partner to demand and receive property other than cash in return for his contribution.
Dated this 1st day of May, 1956.
In the presence of:
(Signatures)
Warren E. Bufftett
Charles E. Peterson, Jr.
Elisabeth B. Peterson
Doris B. Wood
Truman S. Wood
Daniel H. Thompson
Alice R. Buffett
ββββββββββββββββββββββββββββββββββββββ
And there it is! It's crazy how this simple contract would lead into a the economic juggernaut that is Berkshire Hathaway!
Carson for StockRip.com<---Ask as CEO a question and they respond personally to you via video.
