The Business Brew John Huber - Mental Flexibility and Trying To Win The Game
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May 23, 2025 Join John Huber, the brain behind Saber Capital Management and writer for Base Hit Investing, as he dives into the world of value investing. He shares his insights on evaluating growth companies and the risks of overpaying for stocks. John emphasizes the importance of mental flexibility and independent thinking in navigating the financial landscape, while also discussing the future of Berkshire Hathaway and opportunities beyond the S&P 500. His grit and consistency shine through as he balances investment management with writing.
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Protect Assets Over Beating Market
- Focus on protecting assets from permanent impairment rather than short-term market outperformance.
- Long-term returns take care of themselves if you prioritize good fundamental investments.
Stock Return Drivers Explained
- A good stock's return comes from growth, change in valuation multiples, and cash returned to shareholders.
- Overemphasis on growth ignores valuation, increasing risk of poor long-term returns.
Growth Focus Fueled by Past Performance
- The narrative favors growth stocks because they delivered strong past performance and have clear moats.
- However, high valuations now make sustaining long-term returns difficult even for great companies.