We Study Billionaires - The Investor’s Podcast Network TIP634: Value Investing Fundamentals w/ John Huber
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May 31, 2024 
Join John Huber, Managing Partner at Saber Capital Management, as he dives into the fundamentals of value investing. He shares insights on constructing a personal MBA, the concept of 'Base Hit Investing,' and identifies three key sources of stock returns. John critically evaluates Costco's stock, pondering whether it's in a bubble, and details the types of companies he targets for investment. With a keen eye on current market conditions, he discusses his strategy for concentrated positions and the importance of writing out investment theses for clarity.
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John's MBA
- Study Buffett's letters, focusing on business principles and case studies.
- Analyze company annual reports like baseball card statistics to understand business margins and capital requirements.
Base Hit Investing Philosophy
- Base hit investing prioritizes low-risk investments and consistent progress.
- It's a philosophy of incremental gains, like hitting singles in baseball, compounding over time.
Three Sources of Stock Returns
- Stock returns are driven by earnings growth, changes in the price-to-earnings (P/E) multiple, and capital returns (dividends/buybacks).
- Understanding these three drivers helps assess investment potential.