Saguaro holds elite compounders through fair value estimates unless better opportunities arise
Jim Falbe · Jim Falbe – Modern Value Investing at Saguaro (Capital Allocators, EP.320) · Jun 8, 2023 · at 38:33
Jim Falbe, founder of Saguaro Capital Management, explains why his firm avoids selling great businesses just because they reach estimated fair value.
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“What we've tried to do is say, hey, if we've got one of these really rare, truly great businesses, it's okay if it kind of gets to our midpoint of value, our fair value estimate. Unless we have some other opportunity that's just so much more compelling, let's allow this thing to compound over the long run, because that's why we bought it in the first place.”
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