In past annual letters I have always utilized three categories to describe investment operations we conduct. I now feel that a four-category division is more appropriate. Partially, the addition of a new section—“Generals–Relatively Undervalued”—reflects my further consideration of essential differences that have always existed to a small extent with our “Generals” group. Partially, it reflects the growing importance of what once was a very small sub-category but is now a much more significant part of our total portfolio. This increasing importance has been accompanied by excellent results to
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