Welcome!

2010 Partners Meeting

October 7th 2010
 Comparison of changes in $100,000 invested in
Aquamarine Fund Inc. vs S&P 500
$400,000.00

$350,000.00

S&P 500
$300,000.00

Aquamarine Fund Inc

$250,000.00

$200,000.00

$150,000.00

$100,000.00

$50,000.00

$0.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 Aquamarine Fund
Cumulative Return (Net of Fees Since Inception Sep, 1997)

200%

150%

100%

50%

0%

Fund DJIU S&P 500 FT 100

3
Year Fund S&P  500
2010 4.3% -­‐5.9%
2009 39.3% 23.5%
2008 -­‐46.7% -­‐38.5%
2007 17.0% 3.5%
2006 37.1% 13.6%
2005 7.2% 3.0%
2004 11.2% 9.0%
2003 29.5% 26.4%
2002 -­‐1.6% -­‐23.4%
2001 1.9% -­‐13.0%
2000 21.4% -­‐10.1%
1999 -­‐6.7% 19.5%
1998 26.1% 33.6%
1997 2.5%^ 5.5%^
 Investment  Performance  
(As  of  May  19,  2009  net  of  fees  since  inception  ʹ Sep  1997

Fund DJIU S&P  500 FT  100

Cumulative  Return 181% 29.7% 14.1% 6.6%

Annualized  Return 8.3% 2.0% 1.0% 0.5%

Trailing  12-­‐Months  Return 12.4% 5.5% 2.8% 6.4%

Historical  performance  represents  Aquamarine  Fund,  Inc.  

 Performance  Expectations
‡ 85% of mutual funds lag the S&P 500 Index after all
fees and expenses. Just 0.5% of Mutual Funds beat the
Indices by over 3%. (Source: Bogle)
‡ My goal is to beat the three indices over the long haul.
Beating all three indices is likely to put us in the top 10% of
all US mutual funds and hedge funds.
‡ ,¶Pquite confident we‟ll beat the indices over the long
haul. Not sure by how much
Aquamarine  Fund  Value  Proposition
‡ Low  /  No  management  fees
‡ Spier  family  is  the  largest  investor  ʹ we  eat  our  
own  cooking
‡ No  performance  fees  until  fund  regains  new  
highs
‡ No  leverage,  No  margin  loans,  No  short  
positions,  no  complexity
/ǁĂŶƚƚŽŬŶŽǁŝƐǁŚĞƌĞ/͛ŵ
going  to  die,  so  I  will  never  go  
there.

-­‐ Charlie  Munger

(  Commencement  Address  to  USC  law  
school)
‡ Before Investing, run a checklist
‡ Take buy and sell decisions when the market is closed
‡ Buy to hold for at least two years
‡ Reduce toxic relationships, increase productive ones
‡ Create Useful Partnerships
‡ &UHDWHDGLVWDQFHIURPWKH³PDGGLQJFURZG´
‡ Sequence information appropriately
‡ Maximise positive feedback loops
‡ Invoke useful circuit breakers
 0RRG\¶V

Instead of a 7X, Moodys ZDVRQO\DGRXEOH«

12
‡Go long
what China
is short
- John Burbank, Passport Capital
Iron Ore Cost Curve

Source Citibank
Steel China Iron Ore Fines cfr
main China port $/tonne
London Mining
18
0RRG\¶V
 Value US$
Allocation of Ideas Total
mm
Best of Breed 41.55 50%
Global Commodities 9.54 11%
Global For Profit
6.14 7%
Universities
Other 19.04 23%
Cash 7.23 9%
Total 83.5 100%

Approx. 25 positions.
New positions enter the portfolio at 2-5% of capital
Q&A
Danke vielmals
Auf  widerluege
En  guete!
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