Behind the Balance Sheet #36 The Runner
9 snips
Jun 20, 2024 
Investor John Huber shares his investing principles, including capital allocation, revenue growth, and his focus on North American stocks. He discusses why he likes Alphabet and why Floor & Décor is a major position. The chat covers strategic investing inspired by Warren Buffett, company culture's role in Google's success, quick conviction investments, and insights on stock research. It also explores the potential impact of automated vehicles on the stock market and the importance of maintaining a diversified portfolio. Plus, a look at the similarities between running and investing, along with book recommendations.
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Building Capital via Real Estate
- John Huber used real estate investing during the 2007 foreclosure boom to build capital.
- This approach enabled him to later start a fund aligned with Buffett-style partnerships.
3 Engines Drive Stock Gains
- Stocks rise from growth, valuation changes, and share buybacks.
- Companies growing 6-10% with capital-efficient buybacks often yield high long-term returns.
Beware Growth Traps Above 20%
- Growing too fast can cause costly growing pains and overstretched capital.
- Sustained growth above 20% is risky and managing 6-12% growth with buybacks is often ideal.