Maracaibo Oil Exploration Corp. Issued to Buffett Partnership, Ltd. - 1962 dated Oil Stock Certificate - Maracaibo Basin in Venezuala
Inv# OS2180F Stock
Oil Stock printed by American Bank Note Company. Issued to Buffett Partnership, Ltd. on front of stock! Two male figures at each side of a female. Very attractive vignette!!!
Lake Maracaibo is abundant in oil and gas resources, earning it the nickname "oil lake". The first Spaniards to arrive utilized the tar seeping from the lake to seal ship cracks. The Maracaibo oil field was discovered in 1914, the first oil well was drilled in 1917, and large-scale exploitation began in 1922. The oil fields are concentrated in the northeast and northwest of the lake, with oil-producing layers consisting mainly of Tertiary sandstone and Cretaceous limestone. The hydrocarbon-bearing area covers 1,300 square kilometers, primarily located in the coastal waters stretching 105 kilometers long and 32 kilometers wide to the east of the lake.
Tweedy, Browne Company LLC is an American investment advisory and fund management firm established in 1920 and based in Stamford, Connecticut. As of December 2012, it managed approximately $13 billion in separate accounts and four mutual funds. The firm specializes in value investing, a strategy influenced by Benjamin Graham, and is renowned for its early association with Warren Buffett during the initial phase of his career. Tweedy, Browne is often recognized as "the oldest value investing firm on Wall Street."
Warren Buffett, a protégé of Benjamin Graham, had a close relationship with Tweedy, Browne in the early stages of his investing career. He used the firm as his preferred brokerage for Buffet Partnership, Ltd. (1956-1966) and purchased his first shares of Berkshire Hathaway through them.
The Buffett Partnership, Ltd. (BPL), founded in 1956 by a 25-year-old Warren Buffett in his hometown of Omaha, Nebraska, began with a modest pool of $105,100. This capital was primarily contributed by seven family members and friends, along with Buffett’s symbolic $100 investment. The investment partnership operated out of his bedroom, where Buffett implemented strict and unconventional terms. He refrained from taking management fees, instead earning a 25% return on all profits exceeding a 6% compounding hurdle rate. Drawing inspiration from his mentor, Benjamin Graham, Buffett applied the principles of value investing. He targeted severely undervalued “cigar butt” stocks and arbitrage opportunities. As these investments consistently outperformed the broader market, word of mouth spread, attracting more capital and leading to the consolidation of multiple sub-partnerships into a single dominant entity.
Throughout its 13-year existence, BPL achieved legendary status by consistently generating compounding annual returns of nearly 30%, without experiencing a single losing year. During this period, Buffett’s investment strategy evolved from simple asset liquidations to acquiring controlling stakes in undervalued businesses, most notably a struggling textile mill named Berkshire Hathaway. By 1969, Buffett recognized that speculative market conditions and an inflated stock market hindered the discovery of true value investments on a larger scale. Consequently, he voluntarily liquidated the partnership, returning over $100 million in assets to his investors. Buffett offered partners the option of receiving cash or shares in Berkshire Hathaway, laying the foundation for the modern multinational conglomerate.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.
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