Quick Update, Recollection of Goals, and Reminder

Posted on 4 CommentsPosted in General Thoughts, Saber Capital Management

To those who follow my blog, thanks for reading. I’ve enjoyed writing ideas down, and the feedback/comments/email correspondence/advice, etc… has been outstanding. I don’t spend a lot of time talking about my business, because I prefer that the blog remains a free source of information and ideas on for individual investors. Lots of good things have happened so far at Saber Capital Management, which is the company I formed to manage outside capital, and that remains my top business priority. But […]

EBIX: Better Timely Than Good

Posted on 6 CommentsPosted in Uncategorized

“It’s better to be timely than good.”  –Shane Battier, in a post game interview last Thursday after hitting six 3-pointers to help the Heat win game 7 over the Spurs to take their second straight NBA title. Battier used that tongue-in-cheek quote to respond to a question from Doris Burke on how he was able to turn around his performance. He was benched in numerous games during the post season in large part because of his poor performance. That changed […]

Commentary on the Stock Market

Posted on Leave a commentPosted in Overall Stock Market

I don’t discuss the overall stock market much on this site. There are plenty of other commentators and analysts out there that do, and so I don’t feel I will add much value to my readers by discussing what the S&P is doing. The other reason I don’t discuss the stock market much is that I feel that it doesn’t benefit my own investing much either… I also don’t think that it does much good to think about what the […]

James East of Mercertus Capital on How He Achieved Big Returns

Posted on 5 CommentsPosted in Investment Philosophy, Superinvestors, Think Differently

One of the things I’ve discussed a lot on this blog is the investment process. Another thing I’ve discussed is some ideas I have on how to achieve significant results. As I’ve mentioned before, one of my favorite quotes is from John Templeton “If you want to have a better performance than the crowd, you must do things differently from the crowd.” I think that although the concept of being a contrarian is very familiar with most investors, it is […]

The Concept of Idea Inventory and Cheap Parts of the Market

Posted on 4 CommentsPosted in Think Differently

I divide my time into two main areas: business development (this includes networking, meetings, discussing ideas with prospective investors, etc… basically everything it takes to run my business) and investing. In the latter category, the majority of my time is spent doing two things: idea generation (building watchlists, reading, screening, etc…) and researching (going through items I’ve placed on my watchlist in greater detail). So investing is a never ending interplay between getting ideas and researching ideas. I think of this general […]

Two Types of Investments and Thoughts on ROC Part 2

Posted on 4 CommentsPosted in Investment Philosophy, Portfolio Management

This is part 2 of a long post on my thoughts on how I break investments into two main categories: Earnings Based Investments and Asset Based Investments. This post picks up where the last post left off. Both are based on my investment checklist, which I posted last week. Check My Investment Checklist here, and read part 1 of this post here. Is the Investment Value Based on Earnings or Assets? So I look at ROC in most every investment, […]

Two Types of Investments and Thoughts on ROC

Posted on 2 CommentsPosted in Investment Philosophy, Portfolio Management

I wanted to post a follow up to my Friday post on my investment checklist. I got a lot of feedback and had a few follow up email conversations with readers who had questions and comments. Some wondered about the metrics used to check asset investments or financials (obviously EV/EBIT is not important there). I also had a question about ROC and why such an importance on it. There were some good questions and also some good advice/feedback. Thanks for […]

My Investment Checklist

Posted on 11 CommentsPosted in How to Improve Results

A few different readers have asked about checklists and whether I use one. I have started to recently, and have found it helpful. A year or two ago I heard Mohnish Pabrai talking about the Checklist Manifesto, and how he implemented his own checklist into his investment routine. Pabrai made an analogy to pilots, who go through a detailed checklist just prior to a flight. Using a checklist can help you catch something you didn’t check or didn’t think about. […]

Three Categories of Risk to Keep in Mind When Investing

Posted on 5 CommentsPosted in How to Improve Results

Warren Buffett said there are just two rules of investing: #1-Don’t Lose Money; #2-Don’t forget rule #1. That’s a tongue in cheek oft used phrase, but worth remembering at all times. But it begs the question: how exactly do you “not lose money”? One thing to do is create a checklist… this is something that I heard Mohnish Pabrai discuss a couple years ago and I’ve recently implemented this in my own process, which seems to make the decision making […]