Wells Fargo Post-Mortem

One of Saber’s limited partners manages a mutual fund, and he recently told me his mistakes often come when he picks stocks of lower quality or more complex companies that look cheap, instead of paying a higher price for a great business. He calls this being “too...

Categories of Investments and a Current Idea

In a recent note to my investors, I described three different categories of investments. I’m going to describe an investment idea from the third category very briefly at the end of the post, but first I’ll describe these three types of investments. From a...

Berkshire’s Incremental Returns on Capital

I've written a lot about returns on capital, especially the importance of the returns a company gets on incremental retained earnings. The "returns on incremental capital" are critical in determining the ability of a business to compound its value. I recently did a...

Phil Fisher’s Insight

I’m re-reading Phil Fisher's book Common Stocks and Uncommon Profits this weekend. I haven't read the book since 2006 and I noticed it on my shelf and decided to revisit it. I've always liked his common sense approach to investing for the long-term. He talks about how...