Investment Ideas & Company Research

Facebook Is Undervalued

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As I mentioned in a note to my investors earlier this week, the spirit of the Holiday shopping season has been extended to certain parts of the stock market, with a number of bargains to be found. In terms of interesting ideas to be excited about, my watchlist is beginning to rival the ever-growing wish list that my kids have diligently been preparing for Santa. I wrote a letter to Saber Capital investors this week with some thoughts on Facebook, […]

Education

China Thoughts and the Circle of Competence

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I had a great week in China with Jake Rosser and Connor Leonard, two good friends and fellow investors. We spent our time visiting a few companies, talking with employees and business owners, and just observing some day to day life in Beijing and Shanghai. I have spent a significant amount of time over the past few years reading and learning about China, and it was very helpful to apply the learnings with some real world on-the-ground observations. I have […]

Charlie Munger

Two Berkshire Takeaways and Thoughts on Competitive Markets

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On a morning run a few weeks ago, I was listening to a talk by Alice Schroeder, author of the outstanding Buffett biography Snowball. She was discussing some things she learned from Buffett in front of an audience of Microsoft employees. Schroeder is always someone I like listening to. She’s an excellent storyteller, she has a thorough understanding of both business and investing, and she has had more access to Buffett’s files than any other outsider. The combination of these attributes […]

Case Studies

Discussion at Markel

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I sent this to Saber Capital clients last week, and I wanted to post it here on the site as well. Last month, I had the great privilege to visit Markel and speak with Tom Gayner and a few of his colleagues at Markel in Richmond, Virginia. Markel has always been a company that I’ve greatly respected, in large part thanks to the leadership of Tom Gayner, who has done an outstanding job stewarding the culture that the Markel family established […]

Investment Philosophy

Saber Capital Discussion with Googlers

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In late January, I had the great experience of visiting Google in Mountain View, California, where I had the chance to do meet with some Google employees to discuss investing (here are the slides from the talk). The timing was fortunate, as it was my good friend Saurabh Madaan’s last week as a Googler. In addition to his post as a senior data scientist at Google, the value investing community knows him for his side gig: hosting the Investing Talks […]

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 […]

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 […]

Investment Philosophy

Saber Capital Investor Letter – 2017 Mid-year Update

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I recently wrote my mid-year investor letter to my clients at Saber Capital Management. I thought I’d share that letter with readers, since I posted it to my firm’s website. If you’re interested, you can view the letter here (it is also embedded below): Saber Capital Investor Letter – 2017 Mid-year Update If you’re interested in receiving future Saber Capital investor letters, you can get on Saber’s email distribution list using the form on the sidebar of our website: Saber […]

Investment Ideas & Company Research

Returns on Capital and an Investment Idea

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A couple years back, I wrote a series on the topic of returns on capital (ROIC) and how significant its impact is on the long-term value of a business. As a long-term shareholder of a business, your ultimate investment result will be determined by the quality of that business over time. One way to measure quality is to figure out the rate of return that the company achieves on its own internal investments (as well as what that company does […]

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 […]