Great article I definitely enjoyed the read! Quick question though, Warren often has stated if he had a lower amount of capital to allocate he would focus on smaller caps as they have a higher chance of being overlooked and thus more prone to being mispriced. I noticed your holdings are almost exclusively very large companies and wondered if you would address that discrepancy?
I am new to your reading so I'd you have an article talking about just this you can direct me there. Thanks!
That's a very good question and one that I've considered in the past. When we started Sabre Arc, it was much easier to convince my friends to pool their money to purchase well-known, established companies. Because I am not doing this full-time, I wanted to build a foundation for the portfolio, and I am much more comfortable doing that with larger companies. Once I am in a position where I can manage Sabre Arc full-time, I will turn my attention to screening and selecting smaller companies and private businesses where we can deploy capital. This does not mean that I am not looking; I listen to at least one earnings call a day to broaden my circle of competence, so if you know of any good small caps, feel free to send them my way!
Great article I definitely enjoyed the read! Quick question though, Warren often has stated if he had a lower amount of capital to allocate he would focus on smaller caps as they have a higher chance of being overlooked and thus more prone to being mispriced. I noticed your holdings are almost exclusively very large companies and wondered if you would address that discrepancy?
I am new to your reading so I'd you have an article talking about just this you can direct me there. Thanks!
That's a very good question and one that I've considered in the past. When we started Sabre Arc, it was much easier to convince my friends to pool their money to purchase well-known, established companies. Because I am not doing this full-time, I wanted to build a foundation for the portfolio, and I am much more comfortable doing that with larger companies. Once I am in a position where I can manage Sabre Arc full-time, I will turn my attention to screening and selecting smaller companies and private businesses where we can deploy capital. This does not mean that I am not looking; I listen to at least one earnings call a day to broaden my circle of competence, so if you know of any good small caps, feel free to send them my way!
Appreciate the the clarification!
Thanks for subscribing and reading, apricate you!