General Thoughts

Connor Leonard’s 2017 IMC Letter

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Long-time readers are likely familiar with Connor Leonard, but for those who don’t know him, Connor is a good friend of mine who runs the public securities portfolio at Investors Management Corporation. IMC is a holding company located in Raleigh, North Carolina. The firm focuses on long-term ownership of outstanding companies in both the public and private markets. Connor has shared some thoughts with BHI readers in the past, including a post on Reinvestment Moats, Capital Light Compounders, as well as […]

Books

Human Behavior and The Panic of 1907

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I recently wrote a post about a book I really liked called America’s Bank, by Roger Lowenstein. The book talks about the formation of the Federal Reserve, and the events that led to it. One of the major catalysts that started the process of banking reform was the Panic of 1907. What Caused the Panic of 1907? Basically, the Panic of 1907 was caused by a classic run on the bank, leading to the failure of the Knickerbocker Trust company […]

Books

The Interesting Story of the Founding of the Fed

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Roger Lowenstein wrote the first in-depth biography of Buffett in 1995 called The Making of an American Capitalist, an outstanding account that spans from Buffett’s early days in his partnership to the prime years of Berkshire’s growth. Lowenstein also wrote a book I like even better – one of my all-time favorite business books: When Genius Failed, which was the story of the LTCM collapse. There are lots of great lessons for investors to take away from that story, and […]

General Thoughts

Some Comments on Saber Capital’s Investment Approach

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I did an interview that was published on Forbes’ website last week. For readers who have some spare time this week in between your Thanksgiving prep-work and travel plans, feel free to give it a read. In the interview, we talk about my general approach to investing, some thoughts on a few companies including one of my investments (Tencent Holdings), as well as some opinions on active vs. passive investing. I mention in the interview that my approach could be […]

General Thoughts

The Most Important Moat

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I recently wrote an investor note on some thoughts I have on customer value, and why I think it’s important when analyzing businesses. I thought I’d share that letter here: Saber Capital Investor Note: “Most Important Moat” (6/13/2017) In the note, I outline why I think that when you’re evaluating the durability of a company’s moat, it’s critically important to consider the value of a company’s product from the customer’s perspective. It’s a concept I’ve been thinking about for the last […]

General Thoughts

Analyst Ratings and the Institutional Imperative

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Buffett talks a lot about the concept he calls the “institutional imperative”. In his 1989 shareholder letter, when he was describing his mistakes of the first 25 years managing Berkshire, he outlines what he means by this (emphasis mine): “My most surprising discovery: the overwhelming importance in business of an unseen force that we might call “the institutional imperative.” In business school, I was given no hint of the imperative’s existence and I did not intuitively understand it when I […]

Case Studies

The Competitive Advantage of an Owner-Operator

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I gave a talk at an investing conference in Philadelphia last week where I discussed my overall approach to investment along with three broad categories where I think investors could focus to gain an edge (I’ll share the slides in a later post). I don’t attend many of these industry events, but it is fun to attend them occasionally, as I got to meet with a few Saber Capital clients who live in the NYC/NJ/Philly area as well as other […]

General Thoughts

New BHI Research Site

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My good friend and fellow investment manager Matt Brice and I have decided to start a subscription-based sister site that we are calling the BHI Members Site. I’ve known Matt for a number of years now, and he and I think similarly when it comes to our approach to investing, which is focused on making a few select investments in high-quality companies that produce attractive returns on capital and, by our estimation, can continue to compound value going forward. Matt […]

General Thoughts

Weekend Reading and Speaking Engagement

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I thought I’d put up a quick post with a couple articles I’m reading this weekend. But first, I wanted to mention to readers that I’ll be speaking at the MicroCap Conference in Philadelphia on October 24th. It should be a fun event with both investing strategy discussions as well as opportunities to talk with management teams of small companies about their businesses. Check out their site for more details or to register for the event. If anyone is attending […]

General Thoughts

Weekend Reading: WeChat’s Huge Moat in China

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This is just a quick post on some interesting articles I read over the weekend as I caught up on some newspaper reading. There were a couple recent pieces (one in the Economist and one in the NY Times) on WeChat, the Chinese messaging app that now boasts over 700 million users. WeChat is also generating a significant amount of revenue (unlike Facebook’s WhatsApp and Messenger apps that haven’t monetized their networks yet). WeChat is also estimated to be very profitable for its […]