I founded Saber Capital Management, LLC about six years ago. Around that time, I began writing my investing thoughts at a blog I called Base Hit Investing. The name was just something I came up with on a walk one day. It combines my love of both baseball and investing, but more broadly, it references the philosophy I’ve always used in both business and life. Putting one foot in front of the other, trying to get a little bit better each day, and prioritizing small, incremental gains has always been a general formula that has worked for me. I enjoy the satisfaction derived from continuous improvement, even when the changes on any given day are imperceptible. Focusing on steady (even if sometimes slow) improvement is useful in many areas of life: relationships, parenting, work, fitness, and healthy eating, among others. It’s also a great way to think about long-term investing. In sum, base hits are the metaphor for how I like to think about chunks of progress.
I mention this background because Base Hit Investing’s old content has been transferred to Saber Capital’s site, and going forward, our writing and research will be published on Saber’s site. Saber has a page where my new writing will be posted (Saber Notes), and it also has a page containing some investor notes and a few pieces from the old Base Hit Investing archives as well. If you’ve been receiving this writing via email, you will continue to receive it. If you don’t receive Saber Capital’s posts via email and would like to, you can get on our distribution list here.
In sum, nothing will change other than Saber’s research and writing will now be on the firm’s site instead of on the old blog.
Business Update
Combining the two sites has coincided with a change I’ve made at Saber Capital. I started Saber as a business that would manage capital through separate accounts. Since then, the business has grown to the point where it now makes sense to manage money inside of a partnership structure. Saber Investment Fund, LP is an investment partnership that has been operating since 2014, and it will now replace separate accounts as the main investment vehicle for new Saber investors going forward. I’ve modeled the fee structure after the original Buffett partnerships, which has no management fee and takes a 25% performance fee for profits in excess of a 6% compounding hurdle. I explain my thoughts in more detail in this letter.
I intend to continue writing my thoughts on investing. I have always kept an investment journal, and when I decided to begin sharing some of my investment thoughts publicly, it was mostly because I wanted to connect with other people and become more a part of the “investing community” I saw developing. I had no expectations that it would help me build my business, but in fact, writing my ideas has proven to be a great way to connect with investors who are like-minded and who understand Saber’s underlying investment approach. This has made for a great collection of partners who are rational, value-focused, and long-term oriented. In downturns, I rarely hear a peep from anyone, and on balance, money has flowed in to Saber during those corrections, which is both very rare and very valuable if you’re an investment manager. It’s a great group that I’m lucky to be associated with, and I believe my investors are truly one of Saber Capital’s best assets.
Podcast
One last note: I also wanted to pass along a link to a podcast I did last week with Meb Faber. If you’re interested (meaning, if you’re bored and have exhausted all of your other options for productive uses of time), then please spend an hour listening to me and Meb chat about investing.
Thanks for reading!
John Huber is the founder of Saber Capital Management, LLC. Saber is the general partner and manager of an investment fund modeled after the original Buffett partnerships. Saber’s strategy is to make very carefully selected investments in undervalued stocks of great businesses.
John can be reached at john@sabercapitalmgt.com.