Saber Capital Management commentary for the third quarter ended September 30, 2022.
Q3 2022 hedge fund letters, conferences and more
Dear Investment Partner,
Earlier this fall I had the opportunity to speak at the FinTwit Summit, an online investing conference that raises money for St. Jude Children’s Hospital.
You can see the video of the presentation here. You’ll need this password to access the video: d*nm+=c{(1f
The talk is called “The Three Engines of Value”, which is a topic I’ve touched on briefly in letters over the years. There are three factors that drive stock price results over time:
- Earnings growth
- The change in P/E multiple, and
- The change in shares outstanding.
I touch on my valuation method as well as a few examples that I thought you might find useful.
I’ll be discussing these three engines in an upcoming blog post as well.
Other notes:
I have a number of notes in draft form that I plan to post to our site (more writing is planned for 2023, as there are a number of companies and general ideas I’d like to share with you).
I also plan to host our third Saber investor online meeting early next year. More details to come in our end of year letter.
As I said recently, I’m finding a lot of great value in the market right now. I track the size of my “priority research list”, and this idea backlog has more stocks on it currently than it has in a number of years. Value and stock selection are becoming important again, and I think this bodes well for us over the coming years. 2022 has seen a correction in stock prices, but the fundamentals of our companies have in aggregate never been better. A majority are using their excess free cash flow to buy back shares (two of our companies have reduced their share count 10% alone this year, which is a real life example of how lower prices benefit us as long-term owners). Despite the tough stock market, 2022 has been a very productive year in terms of research and quality idea generation. Many of these ideas remain on our priority watchlist, but may enter the portfolio depending on prices of existing positions I will be discussing a few of our recent investments in upcoming posts and investor letters.
In the meantime, should you have any questions, please feel free to reach out anytime. I’m always happy to arrange a call.
I wish you and your family a Merry Christmas and a Happy Holiday Season.
Best Regards,
John Huber
Managing Member, Portfolio Manager
Saber Capital Management, LLC
(919) 610-6809
sabercapitalmgt.com
