About John Huber
John Huber is the portfolio manager of Saber Capital Management, LLC, a value-focused investment firm that manages separate accounts for clients. Saber’s objective is to compound capital over the long-term by making investments in undervalued stocks of high-quality businesses.
By using separate accounts, Saber’s clients get complete transparency over the investment process and well as complete control over the access to their funds (the funds are held in the client’s name in their own separate account). Saber looks to partner with like-minded clients who are interested in a patient, long-term investment approach that is rooted in the principles of value investing.
John can be reached at email@example.com.
Saber’s approach to investing is based on the general principles of value investing. Stocks are pieces of businesses that should be analyzed by thinking critically about the economics of the business, its durability against competition, its future prospects, the effectiveness of management and their track record, and the price that a private buyer would pay for the entire company.
Saber’s investment strategy is to make investments in durable, high-quality businesses at attractive prices. A central tenet of my approach is to focus on simple businesses that I thoroughly understand. My investment process involves researching and building lists of businesses that I’d like to own, and then patiently waiting until I can identify an obvious gap between price and value. Since high-quality businesses rarely go on sale and since great insights don’t occur every day, a Saber portfolio is typically a concentrated portfolio. The strategy is set up to capitalize on my best ideas.
The goal is to build a portfolio of investments that collectively can compound over time at rates of return that are significantly better than the stock market averages. Good businesses that are producing high returns on capital can be great compounding machines over time.
To achieve successful long-term compounding, it is important to be patient and focused on the long-term prospects for businesses. Since most market participants are focused on short-term results and quarterly earnings estimates, opportunities often abound for those who can afford to maintain a longer-term view. Short-term volatility should be viewed as opportunity, not risk, as downward volatility (stock prices going down) is what creates bargains in the stock market.
Perhaps most importantly, it is imperative to be maintain a vigilance toward capital preservation. Focusing on reducing investment mistakes is often the key to producing superior long-term results. Saber strives to always remember Warren Buffett’s famous 2 rules of investing:
- Rule #1: Don’t Lose Money
- Rule #2: Don’t Forget Rule #1
Saber Capital’s Name
Saber Capital’s name comes from Sabermetrics, a baseball term coined by Bill James, and made famous by Oakland A’s GM Billy Beane, who became the subject of the best-selling book Moneyball by Michael Lewis. Sabermetrics was a value investing strategy, but it was more commonly known as a strategy based on quantifiable observations and data. Moneyball was centered around things like runs scored, walks, base hits, and on-base-percentage. The strategy was fairly simple: evaluate players based on how often they get on base, and look to buy these players for less than what they were truly worth.
BHI Content Focus
Writing is a tool that helps me clarify my thoughts. The process of putting thoughts into words forces me to flesh out certain ideas and build a more concrete framework for the particular subject matter I’m writing about. I firmly believe that writing about businesses and investment ideas helps me improve as an investor. My hope for this blog is that readers find some value in reading my commentary, and hopefully we can all extract some benefit from this writing exercise as we try to improve our investment skills.
Thanks for reading!