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John Huber on Running a Buffett-Style Investment Partnership

August 6, 2019 in Building a Great Investment Firm, Equities, Full Video, Interviews, Portfolio Management, YouTube

You may know John Huber from his excellent Base Hit Investing substack. We are long-time fans of John’s research and were delighted to have an opportunity to sit down with him for this interview.

For more than a decade, John has run Saber Capital Management. Saber manages separate accounts and a partnership modeled after the original Buffett Partnerships of the 1950s. John believes investment success comes from a combination of value principles and behavioral traits, above all patience and a long-term mindset.

Saber manages nearly all of John’s personal capital along with a majority of his family’s net worth. The names Saber and Base Hit Investing are metaphors that reference baseball and John’s broad philosophy: to make steady progress day after day, focus on continuous improvement, and emphasize value investing.

In this conversation with Tyler Howell, John delves into his process and some of the mechanics of running a small investment firm. Whether you are looking to become a better investor or learn about what it takes to run an investment partnership, you will find this interview highly relevant.

A few of our favorite Base Hit Investing posts:

Also, we highly recommend John’s ROIC series on the Saber website.

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Jeremy Balkin on His Book, Millennialization of Everything

August 5, 2019 in Audio, Meet-the-Author Forum, Meet-the-Author Forum 2019

Jeremy Balkin discussed his book, Millennialization of Everything, at MOI Global’s Meet-the-Author Summer Forum 2019. Jeremy is the head of innovation at HSBC.

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About the book:

Millennials are the largest living generation in the USA, weighing in at an astonishing 92 million people. By 2025, Millennials will make up 40% of eligible voters and 75% of the global workforce. Their sheer size and unprecedented influence have disrupted every status quo impacting the world around us. Award-winning author Jeremy K. Balkin refers to this phenomenon as the “Millennialization of Everything.” Socio-economic and historical events have fundamentally shaped the Millennial Mentality and their preferences and behaviors. Debunking commonly held stereotypes and understanding the Millennial Mentality are critical to harnessing the power of their best traits and unlocking future trends. Only then can we effectively engage, motivate and empower the most important generation in history.

About the author:

Jeremy K. Balkin is regarded as an international thought leader on ethics in banking, innovation and the strategic engagement of millennials in financial services. He is author of Millennialization of Everything: How to Win When Millennials Rule the World, and is the award-winning author of Investing with Impact: Why Finance is a Force for Good. In 2016, the book received the Gold Medal in Business Ethics in the Axiom Business Book Awards, and also won the Business category in the International Books Awards. The books have received praise from luminaries including Arianna Huffington, Frances Hesselbein, Lynn Schusterman, Professor Emil Pitkin and Pope Francis.

Jeremy K. Balkin serves as the Head of Innovation in North America for a major international bank and he is also an adviser to the leading global accelerator program StartUpBootCamp FinTech in New York City. He also previously worked for the Hon. Malcolm Turnbull, Australia’s 29th Prime Minister.

In 2008, Jeremy K. Balkin survived a life-changing extreme sports injury that shaped his purpose to deploy financial resources to improve the state of the world, and The Huffington Post described Jeremy K. Balkin as the “Anti-Wolf of Wall Street” for his work making the case that banking and finance are forces for good. His popular TED talk, “The Noble Cause: Positively influencing the allocation of capital” has been viewed over a quarter million times, and he has been invited to speak at the likes of Davos, the United Nations, Harvard Business School and London School of Economics.

Jeremy K. Balkin has run six marathons, received the prestigious UNSW Alumni Award for Achievement, and is designated as a Young Global Leader by the World Economic Forum. In 2017, he was named in the Top 35 Millennial Influencers in USA. He has studied at the UNSW Business School, Financial Services Institute of Australasia, and Harvard Kennedy School.

Dan Bleicher on Compounders and Underfollowed Gems

August 5, 2019 in Equities, Full Video, Interviews, Transcripts, YouTube

We are delighted to present the following conversation with Daniel Bleicher, Founder and Portfolio Manager of Equarian Fund, LP, based in New York.

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Nathan Mellor on His Book, Sleeping Giants

August 4, 2019 in Audio, Meet-the-Author Forum, Meet-the-Author Forum 2019

Nathan Mellor discussed his book, Sleeping Giants: Authentic Stories and Insights for Building a Life That Matters, at MOI Global’s Meet-the-Author Summer Forum 2019. Nathan is the president of Strata Leadership.

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About the book:

Your mental model is not rigid. At any point in life, you possess the ability to change your perspective. Have you found that success does not erase insecurity and self-doubt? Do you know what it feels like to long for a different life? Sleeping Giants provides practical insights into how ordinary people can choose to build lives that matter.

Written by one of America’s foremost storytellers and leadership guides, Dr. Nathan Mellor provides behind the scenes access to authentic stories about life. Each chapter connects vital concepts to true stories from his life, the lives of friends and family as well as public figures. Each page helps provide clarity about the factors, often hidden, that shape our understanding. The result is a thoughtful, inspiring and challenging book that provides a framework for life.

  • Gain insights into how the brain can be remapped by reviewing how the Secret Service responded to the attempted assassination of a United States President.
  • Learn how Mahalia Jackson inspired Dr. Martin Luther King Jr. to give the, “I Have a Dream” speech.
  • Consider how perspective is changed while hiking on the Appalachian Trail.
  • Understand why Ted Roosevelt, the son of Theodore Roosevelt, requested to be among the first wave of soldiers on D-Day.
  • Follow along with Nathan as he explores how his personal mental model was shaped and transformed in key moments.
  • Discover what General Dwight Eisenhower said to paratroopers from the 101st Airborne Division just hours before they were dropped behind enemy lines in Normandy.
  • Learn why Nathan’s granddad would always turn the songbooks the same direction when he cleaned the church building.

About the author:

A thought-leader, two-time TEDx speaker, author, and President of Strata Leadership, Dr. Nathan Mellor is recognized for his ability to connect at the heart level with a wide range of audiences. A proven executive coach, who has provided more than 2,500 coaching sessions for executive leaders, he believes offering the highest quality feedback requires caring deeply about others. He serves as a sounding board, sparring partner, and a source of encouragement for leaders seeking to maximize their effectiveness.

Since founding Strata Leadership with his business partner, Frank Smith, in early 2009, the company has grown from a single employee in a windowless office to a multi-million dollar family of companies. Each year, the team at Strata Leadership provides character and competence based talent development services for hundreds of clients (non-profits, for-profits, educational institutions, and governmental agencies) throughout the United States and abroad.

In pursuit of educational, humanitarian, and religious interests, he has studied or taught in: Australia, Belize, China, England, Guyana, Israel, Jordan, Mexico, Russia, and Rwanda. He is passionate about developing future leaders and is the co-founder of the Presidential Leadership Institute, hosted on the campus of York College, in collaboration with the Eisenhower Presidential Library and Museum. He is an adjunct professor for graduate programs at York College and Oklahoma Baptist University. He is the chairperson for the Strata Center for Workplace Coaching and the co-founder of the Institute for Emerging Leaders. He is also the chairperson of the Oklahoma Business Ethics Consortium, which regularly convenes nearly 150 organizations that are committed to the promotion of integrity based business practices.

Dr. Mellor earned the Doctor of Education in Organizational Leadership degree from Pepperdine University, where he was a Colleagues Grant recipient. He earned the Master of Dispute Resolution degree from the prestigious Straus Institute for Dispute Resolution at the Pepperdine University School of Law, where he was named a Straus Fellow. Dr. Mellor earned the Master of Science in Education degree from Harding University while serving as the Graduate Assistant to the University President. He earned the Bachelor of Arts from Harding University where he was elected Student Association President.

His book, “Sleeping Giants: Authentic Stories and Insights For Building A Life That Matters” provides behind the scenes access to stories from his life, the lives of friends and family, as well as public figures, giving clarity about the often hidden factors that shape our understanding of life. “Sleeping Giants” is available through Monocle Press, Amazon, and Audible. Nathan lives in Edmond, Oklahoma, with his wife and two daughters.

Ralph Lehman on His Book, The Elusive Trade

August 2, 2019 in Audio, Meet-the-Author Forum, Meet-the-Author Forum 2019

Ralph Lehman discussed his book, The Elusive Trade: How Exchange-traded Funds Conquered Wall Street, at MOI Global’s Meet-the-Author Summer Forum 2019. Ralph is an investment consultant at USI Consulting Group.

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About the book:

On January 22, 1993, the first exchange-traded fund was launched in the United States. It was called the SPDR fund also known as the Spider and it offered convenient and affordable exposure to a range of markets in a new way, different from traditional mutual funds. Shortly after this introduction, ETFs became an incredibly popular option for both individuals and for institutional investors, and they began to grow in numbers. In The Elusive Trade: How Exchange-Traded Funds Conquered Wall Street, Ralph H. Lehman leverages his twenty-year financial background and investment expertise to dive deep into the history of ETFs in this country, explore their development, and highlight the people who paved the way for the Spider’s success, leading to the market we know now.

About the author:

Ralph Lehman is an Investment Consultant with USI Advisors, Inc. and is responsible for developing, implementing and monitoring investment strategies for defined contribution and defined benefit clients. Ralph is also actively involved with fund monitoring. In addition, Ralph conducts investment review meetings with clients.

Ralph’s experience includes asset allocation advising, portfolio construction, investment research, investment reporting, operations and governance. Prior to joining USI Consulting Group, Ralph served as a portfolio manager for a regional bank in trust and wealth management. Ralph has also authored a book on the development of the exchange traded fund (ETF), titled The Elusive Trade that is tentatively scheduled for publication in February of 2019.

Ralph earned his JD and an MBA in Finance from the University of Tennessee and his Bachelor of Business Administration from the University of Georgia. Industry designations include: Chartered Financial Analyst, Member of the CFA institute, Chartered Alternative Investment Analyst, Member of the CAIA Association, and member of the Tennessee Bar.

François Rochon: The Art of Investing — Going Beyond the Numbers

August 2, 2019 in Curated, Equities, Full Video, Interviews, Timeless Selections, Transcripts, Wide Moat, YouTube

François Rochon, president and portfolio manager of Giverny Capital, participated in the “Talks at Google” series in 2017. He was hosted by Saurabh Madaan. François shared lessons from several decades of value investing.

François was educated as an engineer at the École Polytechnique of Montreal. After graduating with his Masters Degree (in Science), he worked as a researcher and network engineer for INRS-Telecom and Teleglobe Canada. Following his lifelong passion for investing, he decided to focus his career on professional money management. After managing family accounts between 1993 and 1996, he joined Montrusco & Associates as an analyst and was then promoted to Portfolio Manager. At Montrusco, François managed US accounts totaling more than $250 million. In December 1998, François founded Giverny Capital in order to offer investment management services to clients based on his investment philosophy of owning outstanding companies for the long term. He also sits on various boards of directors.

Stanley Lim on His Book, Value Investing in Asia

August 1, 2019 in Audio, Meet-the-Author Forum, Meet-the-Author Forum 2019, Meet-the-Author Forum 2019 Featured

Stanley Lim discussed his book, Value Investing in Asia: The Definitive Guide to Investing in Asia , at MOI Global’s Meet-the-Author Summer Forum 2019. Stanley is a co-founder of Slimhawk Partners.

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About the book:

Value Investing in Asia offers a uniquely targeted guide to investors seeking new opportunities in Asian markets. Most value investing advice is geared toward US markets, leaving out the key guidance that pertains specifically to investing in publicly listed Asian companies — guidance that is critical for success. This book focuses on the opportunities and challenges of Asian markets, including current and historical case studies that illustrate various successes, risks and pitfalls. Step-by-step guidance helps you unearth great opportunities in Asia; from understanding the macroeconomic situation, to narrowing down on specific investment opportunities. Invaluable for both new and experienced investors, this practical reference shows you how to apply value investing principles specifically to Asian stocks.

Investing in Asia comes with an inherent set of unique challenges that must be understood before any decisions are made; some of these challenges are the result of operating practices, some are the result of regulatory issues and others come from the markets themselves — yet regardless of the source, value investors in particular bear the brunt of the obstacles. This book shows you what you need to know, and how to invest intelligently in Asian companies.

  • Step-by-step approach guides investors towards the practical application of value investing principles in Asia
  • Navigate the challenges unique to Asian investing
  • Examine real-life case studies that illustrate both risk and opportunity
  • Delve into the key markets in Greater China and South-East Asia
  • Includes exclusive interviews with well-known value investors in Asia

Despite the challenges and risks, Asian markets represent significant opportunity — especially for investors seeking value. Value Investing in Asia offers a practical reference for new and experienced investors, with real-world guidance toward intelligently investing in Asian markets.

About the author:

Stanley Lim has spent the last decade in the investment industry. Over the course of his career, he has kick-started a few businesses, worked in the family office industry and most recently in the investment advisory industry. He has been a writer and analyst for The Motley Fool Singapore from 2013 to 2017. During his time at The Motley Fool, he was one of the pioneer staffs in building up the business and has successfully launched three products with the company. Personally, Stanley believes that financial literacy is a key component of the solution to ending global poverty. Stanley is currently the chief editor of Value Invest Asia.

Writer and Educator: He has written close to 2000 articles online, on investment education and market analysis. Stanley is the co-writer of the Asia-focused investment book: “Value Investing In Asia“, published late 2017.

Value Investor: He has invested in the Asian equity for the past decade and currently invests for a few co-investment vehicles. Stanley has managed and invested in the property market over the past decade, and is a director of a property management company. He has invested in private companies, typically in the start-up phase. Stanley is a regular speaker in Singapore and Malaysia, having spoken for Kenanga Investment Bank, CIMB, UOB Kay Hian, Bursa Malaysia and many more. Stanley has also been interviewed before by media outfits such as Channel News Asia, MoneyFM 89.3, CapitalFM 95.8 and the Manual of Ideas.

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August 1, 2019 in Twitter

Josh Wolfe on Leading-Edge Venture Investing with a Value Mindset

August 1, 2019 in Audio, Featured, Interviews, Latticework, Podcast, The Latticework Podcast, Transcripts, Venture Capital

In an episode of the Latticework Podcast, presented by MOI Global, John Mihaljevic speaks with fellow MOI Global member Josh Wolfe about his approach to venture capital investing — backing the most audacious ideas and projects in the world while maintaining a value-oriented mindset.

The Latticework Podcast is on iTunes, Soundcloud, Stitcher, and TuneIn.

An edited transcript of the conversation is available to members of MOI Global.

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Value Investing Amid Low and Incomprehensibly Low Interest Rates

August 1, 2019 in Commentary, Equities, Ideas, Letters

This article is excerpted from a letter by MOI Global instructor Patrick Brennan, founder and portfolio manager of Brennan Asset Management, based in Napa, California.

Low and Incomprehensibly Low

The second quarter was marked by two categories of interest rates around the world: historically low (US) and incomprehensibly low (various countries worldwide). Despite a jobless rate of 3.7 percent, fears of trade tension fallout and mixed economic numbers have increased expectations for US interest rate cuts. The US 10-year bond briefly fell below 2 percent during the second quarter. This would be low by any measure of past rates throughout US history. But, in this surreal world, this yield would have to be considered high yield in comparison to other nations. Europe has sported lower yields than the US for years, but the absolute and relative spreads are still breathtaking. German 10-year bonds are currently at -0.38 percent, Netherland yields are -0.27%. Remember all the negative headlines about Italy and Greece potentially breaking up the EU? Their 10-year bonds are 1.5% and 2.0%. And the crazy interest rate world has spread to, shall we say, more emerging markets. Any interest in lending money to Poland or The Czech Republic for 10 years? You will receive close to nothing or be forced to pay a couple of basis points for the privilege.

The desire for yield has also plagued the corporate world with nearly 30 percent of Euro-denominated investment grade bonds now sporting negative yields. Roughly 2 percent of the European high-yield market has negative yields. In past letters, we noted that our cable names, though leveraged, operate in far better markets than French cable firm Altice and were far more responsible in how they structured debt. Even 2 years ago, we could not have imagined the day when Altice, the true “high yield” borrower if there ever was one, would sport negative yields on certain short-term debt. That day has come.

The golden rule of finance is that a dollar today is worth more than a dollar tomorrow. How much more? Well, it depends on a host of factors, but perhaps no more important than the level of interest rate, as investors must judge whether to own a risk asset or be content to be paid the so-called riskless return. So, what is an investor to do in this type of world where rates have plummeted and stayed far lower than nearly anyone would have predicted? It is far from easy. Could an investor have predicted 5 years ago that this interest rate scenario would have persisted and gone to further extremes? We would argue “no,” but there are a host of opinions on this. The valuations on a large number of technology companies and the parade of cash-burning IPO companies suggest that investors are chasing growth in any form. Certainly, our returns would have been better served if we had more exposure to growth/software as a service/or most recent initial public offering. So, with the benefit of hindsight, we have committed an error of omission which has negatively impacted returns, but does one fix this by now chasing growth? As value investors, one could predict our answer would be “no,” but this decision admittedly may not prove to be correct for some period of time. We still see pockets of value in companies (in our opinion) unfairly tainted as secular decliners, despite possessing more resilient businesses. We also see considerable value in markets outside the United States. With several of our names trading at inexpensive relative and absolute valuation levels, we feel more comfortable with our portfolio versus investing in some of the frothier technology areas of the market or…paying money to The Czech Republic/Poland for the privilege of lending for 10 years.

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