We Study Billionaires - The Investor’s Podcast Network

TIP634: Value Investing Fundamentals w/ John Huber

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.

01:02:01

Episode guests

John Huber

AI Summary

Highlights

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Prioritize competitive advantages, returns on capital, and case studies in personal MBA program.

Base hit investing focuses on low-risk, incremental growth with consistent returns and multiple engine growth.

Investment opportunities include compounders, unpopular large caps, and bargains for diverse and quality portfolio construction.

Deep dives

Key Points of a Personal MBA Program

Starting a personal MBA program includes studying Buffett's letters, focusing on competitive advantages, understanding returns on capital, and learning from case studies and business-related books.

Diverse Investment Strategies Are Essential for Adapting to Market Changes

01:08

Succinct Investment Thesis

01:38

Learn from the Masters: Buffett's Letters as Essential Education

01:16

Aim for Base Hits, Not Home Runs

01:44

Intro

2min

Foundations of Investment Wisdom

17min

Navigating High Valuations: A Case Study on Costco

6min

Investment Strategies Unveiled

18min

Exploring Investment Opportunities Beyond U.S. Borders

6min

Strategic Concentration in Value Investing

11min

The Power of Writing in Investment Strategy

5min

On today’s episode, Clay is joined by John Huber to discuss value investing fundamentals and the current market conditions.

John Huber is the Managing Partner of Saber Capital Management, LLC. Saber manages separate accounts as well as a partnership modeled after the original Buffett Partnership fee structure.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:44 - What John would include in his own personal MBA program

07:50 - What base hit investing is.

09:01 - The three sources of returns for a stock.

14:40 - Why Costco’s stock may be in a bubble.

20:39 - The three types of companies that John looks to invest in.

32:21 - John’s view on today’s current market and where he is finding opportunities.

42:57 - How John manages highly concentrated positions in his fund.

47:09 - Why investing has a long feedback loop in assessing decisions.

54:16 - John’s process for writing out his investment thesis.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Check out Saber Capital Management.
John Huber’s blog: Base Hit Investing.
Check out Journalytic.
Related Episode: MI165: Is FAANG the New Value w/ John Huber | YouTube Video.
Follow John on Twitter.
Follow Clay on Twitter.
Check out all the books mentioned and discussed in our podcast episodes here.
Enjoy ad-free episodes when you subscribe to our Premium Feed.

NEW TO THE SHOW?

Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
Check out our We Study Billionaires Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more