1. Welcome!
2012 Partners Meeting
Zurich – London – New York

2. Agenda
 Performance review & expectations
 Post mortem on past holdings
 Q&A

3. Year Fund S&P 500
2012 (ytd) 20.9 15.6
2011 -3.1 2.1
2010 19.2 14.8
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%^

4. Comparison of changes in $100,000 invested in Aquamarine Fund Inc. vs S&P
500
400,000.00
350,000.00
Aquamarine
Fund Inc
300,000.00
S&P 500
250,000.00
USD
200,000.00
150,000.00
100,000.00
50,000.00
-
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

5. Percentage Increase of Aquamarine Fund since Inception
300%
250%
200%
150%
266.1%
100%
131.0%
50% 95.0% 83.1%
0%
Fund DJIU S&P 500 FT 100
5

6. Investment Performance
(As of August 2012 net of fees since inception – Sep 1997
Fund DJIU S&P 500 FT 100
Cumulative Return 276.9% 137.4% 99% 87.8%
Annualized Return 9.2% 5.9% 4.7% 4.3%
Historical performance represents Aquamarine Fund, Inc.

7. Investment Results
As a multiple of Original Investment
Rate of Return
Years of Operation
9.1% 5.8% 4.1%
5 1.6 1.3 1.2
15 3.7 2.4 1.9
30 14.0 5.6 3.5
Historical performance represents Aquamarine Fund, Inc.

8. 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.
• I am quite confident we’ll beat the indices over
the long haul. Not sure by how much

9. Aquamarine Fund Value Proposition
• Low / No management fees
• Spier family is the largest investor – we
eat our own cooking
• No performance fees until fund regains
new highs
• No leverage, No margin loans, No short
positions, no complexity

10. 0% Management Fee Class Update
Year End Percentage of Total Assets
2007 0%
2008 3%
2009 4%
2010 6%
2011 13%
August 2012 16%

11. Aquamarine Capital Assets Under Management
($ in millions)
$125
$100
$75
$50
$25
$0
Dec 97 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Aug-12

12. Investment Entered before 2008
exited Post
Annualized Return on Investment 53%
17%
8%
-3% -8%

13. Investment Entered before 2008
exited Post
Annualized
Entered Exited $ Profit Total Return
Return
Heineken
Mar 2003 June 2012 1.3 105% 8%
Holdings
Harley
Apr 2006 June 2012 1.0 138% 17%
Davidson*
Alaska
Apr 2007 June 2012 7.5 398% 53%
Milk
Smart
Feb 2008 March 2012 -1.3 -28% -8%
Balance
Discover
Jul 2007 Oct. 2011 -0.16 -13.5% -3%
Financial

14. Investment Entered before 2008
exited Post
Annualized
Entered Exited Total Return
Return
Heineken
10X 13X 105% 8%
Holdings
Harley
15X 16X 138% 17%
Davidson*
Alaska Milk <6X 14X 398% 53%
Smart
>30X >30X -28% -8%
Balance
Discover
20X 15X -13.5% -3%
Financial

18. 99%
Annualized % Return on Investment
99%
78%
46%
30%
21%

19. Investment Entered since 2008
$ Profit Total Annualized
Entered Exited
(mm) Return Return
Cresud Nov ’08 Apr ’11 0.9 305% 78%
London Mining Dec ’08 Aug ’11 1.7 166% 46%
Brookfield Office Jul ’09 Jun ’12 1.3 113% 30%
Capital Source Dec ’09 Jun ‘12 0.8 59% 21%
International Coal Mar ’10 May ’11 3.2 150% 99%
Terex Corp May ‘11 Aug ‘12 0.7 83% 99%

20. Portfolio Developments in 2012
Sales
• Alaska Milk
• Heineken Holdings
• Harley Davidson
• Capital Source
• Brookfield Office Properties
• Terex
Cash Recycled

21. Current Status
• AUM $115 million
• 42% GARP & Better Businesses
• 52% Deeply Discount & Special Situations
• 6% Cash
• Intrinsic value $150-180 million
• New Cash invested = $2.7 million
• Redemptions = $1.5 million

22. Terex Corporation
Market Enterprise
Revenue EBIT NI
Cap Value
2007 7,976 814 613 8,500 9,200
2011 6,504 151 -90 1,500 3,500
20XX ≈10,000 ≈1,000 ≈750 ≈6,000
Collection of unique assets required for construction to function
Consolidating industry, using the downturn to consolidate (e.g Demag Cranes)
No dear term debt maturities low risk of enterprise failure
Eventual recovery of housing and construction activity.
Collapse in share price finely tuned forecasting not necessary

23. Terex Corporation
Purchase Sales
$10.94 (avg) $21.64 (avg)

24. Brookfield Office Properties
Bruce Flatt / Brookfield Asset Management
Location Location Location
Charlie Munger formula for success: Best office property, McDonalds, auto dealership
• 2008 financial crisis
• 33% offices in NYC
• BAC/MER 2013 merger vacancy overhang
But:
• No funding issues / 95% non-recourse debt
• Trading at below replacement & book value.
• Markets substantially recovering in mid-2009
• Merrill partner in World Financial Center

25. Brookfield Office Properties
Purchase $8.93 (avg) Sale: $16.59 (avg)

31. • Plan for success at all times
• Adjust the mission as circumstances change
• Accept where you are.
• Accept past mistakes and move on
• Massive risk care in taking risks
• Never feel sorry for yourself
• Accept the difficulties
• Accept and work with the imperfections in your
team
• Never give up

32. • 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
• Create a distance from the “madding crowd”
• Sequence information appropriately
• Maximize positive feedback loops
• Invoke useful circuit breakers

33. Considerations on Investing with someone else
• 1. Investing their own money
• 2. Sole focus
• 3. Activity, not a Business
• 4. Good
• 5. Fiduciary gene

34. Q&A

35. Thank You
35