Talking Billions with Bogumil Baranowski

Dave Sather: Quality, Integrity, and the 2 AM Test: Building a $2B firm through patient investing and authentic relationships

Dec 22, 2025

Dave Sather, Certified Financial Planner and founder of a $2 billion investment firm, shares insights from his 25+ years in value investing. He discusses how his Depression-era upbringing instilled a strong work ethic and financial discipline. Dave emphasizes building authentic relationships in a small town as key to his firm's growth. He also reflects on educating clients about market volatility, managing fears, and the importance of patient investing. Plus, he highlights the impact of his Bulldog Investment Company program, teaching students to manage real money responsibly.

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ANECDOTE

Frugal Upbringing Fueled Work Ethic

Dave Sather describes childhood rules: half of any money earned went to college and no allowance without work.
He recalls working four part-time jobs at 14 to fund future education and build a strong work ethic.

INSIGHT

Small-Town Moat Beats Big-City Reach

Dave turned Victoria's small-town reputation dynamics into a competitive advantage for his RIA firm.
Geographic moat and local presence let his firm offer lower fees and deeper relationships than big-city competitors.

ADVICE

Align Fees With Client Interests

Be fee-only and fiduciary to align incentives with clients; fees rise or fall directly with relationship size.
Keep client expenses low, deliver good investments, and prioritize client needs over hidden kickbacks.

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Dave Sather is a Certified Financial Planner and founder/CEO of Sather Financial Group, a $2 billion fee-only investment management firm in Victoria, Texas, who has built authentic client relationships through disciplined value investing over 25+ years while creating the award-winning Bulldog Investment Company student internship program at Texas Lutheran University.

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3:00 - Dave shares formative childhood shaped by Depression-era parents who instilled frugality, work ethic, and educational investment. Required to save 50% of all earnings for college from early age, working multiple jobs at 14 to fund goals.

6:30 - Career path story: From El Paso military town to Texas Lutheran education, initially resisting Victoria, Texas but relocating for family obligations. Started advisory firm during 1990s Texas recession when banks and real estate were collapsing.

9:00 - Building relationships in small-town Victoria became competitive advantage. “If I do the right thing by my clients, word of mouth is going to take care of me.” Community connections and authentic service created organic growth without marketing spend.

15:00 - Philosophy shift from finding cheap investments to recognizing exceptional value. “I can pay a premium for really good stuff that can grow for a long time versus buying things that are just cheap.”

27:00 - The Bulldog Investment Company program: Student-run fund managing real money, teaching ownership and accountability. Students present investment cases, debate merits, vote democratically on portfolio decisions.

42:00 - Client relationship insights: Treating wealth transitions with care, understanding accumulation psychology. “This client didn’t just wake up one day with five million dollars and decide to behave like an idiot.”

54:00 - Success definition: Access to basics (water, food, healthcare, safety), meaningful work, strong marriage, 40-year friendships that pass the “2 a.m. test” - relationships where you’d help immediately without excuses.

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.