I wrote a note to my clients last week regarding my general thoughts on the presidential election, some broader historical reference points, as well as how I tend to think about these major political and macro-oriented events from my perch as an investor in stocks at Saber Capital Management.
I spend most of my free time doing the same thing I do when I’m working: reading and thinking about businesses and possible investments. But I keep tabs on sports and politics quite closely; sports I sometimes reference here, but politics I never do. BHI is (and will remain) completely free from such opinions. The futility of political discourse seems to increase with each passing election cycle. I can’t think of many greater drags on human productivity than the time spent and ink spilled opining on why one politician is better than the other (note: there isn’t much difference).
But like many Americans, I am interested in both sports and politics—but much more for the strategic aspects than the actual theater/entertainment value. This is especially true with politics, where I am greatly interested (in part because I love history as well as news/current events), but my interest is nearly 100% related to either the individual policies or the game theory and strategic aspects of the political process itself; whereas in sports my interest is mostly strategic (statistics, front office moves, trades, gameplans, in-game decisions, etc…), but also partly because of the theater/entertainment aspects of sports; plus sports are more fun (and contain less vitriol)!
I have always felt that the majority of the participants in the market (and certainly the average American citizen) places too much weight on who sits in the White House. In this investor note I discuss some historical reference points to illustrate why I believe this is the case, and what the proper mindset should be from the viewpoint of an equity investor, and a long-term owner of American businesses.
I don’t usually publish my investor notes here, but I thought some BHI readers might enjoy reading it.
For those interested, here is my recent note to investors: Saber Capital Investor Note – November 11th, 2016 – Presidential Edition
Have a great weekend!
John Huber is the portfolio manager of Saber Capital Management, LLC, an investment firm that manages separate accounts for clients. Saber employs a value investing strategy with a primary goal of patiently compounding capital for the long-term.