The Co/Report 3/21/21
Happy National Crunchy Taco Day! Yes, this is actually a real holiday. What country eats the most tacos? After reading the newsletter you will find out.
Lunch at the Club Recap
Quality investors present their best investment ideas
Christian Olesen, founder and portfolio manager of Olesen Value Fund presented on Cambria Automobiles at this month’s Lunch at the Club.
To download the presentation slide deck click here.
Starting in April, Lunch at the Club will only be available to Premium Members.
Good Read: Apollo’s Arrow
Apollo’s Arrow by Nicholas A. Christakis discusses the importance of, and enduring effects of the Coronavirus Pandemic of the past year. Christakis brings an interesting view to the pandemic as a medical professional, academic, and someone who is familiar with economic theory. He provides an honest and fair assessment of the way the pandemic was handled up until late July when he finished writing. He is objective in evaluation and insights, he spends very little time discussing the politics and works to strictly analyze and explain policy and its implications. We strongly recommend this book to anyone who is interested in better understanding this pandemic, its effects, and how we may handle future pandemics.
You can’t predict. You can prepare and protect.
“It's tough to make predictions, especially about the future.” ―Yogi Berra
Inflation? Deflation? Who knows. We’re living in an economic time when things are being tried and experimented and imagined and dreamed up and invented by the central bankers and politicians of the world that have never been tried before. You can pick a side, if you’d like, or you can do your best to prepare for the world of the unknown, the unpredictable, and the never-been-seen-before. Inflation is a risk. Whether or not it’s the most likely path, we make no prediction. But it’s worth thinking about whether or not your portfolio is prepared for it. In Howard Marks’ latest memo, he touched on the topic:
Because the primary risk lies in the possibility of rising inflation and the higher interest rates that would bring, I think portfolios have to make allowances: even though we can’t predict, we should prepare. This possibility means (a) bonds with maturities much above ten years are obvious candidates for underweighting and (b) inflation beneficiaries should be considered for overweighting, including floating-rate debt, real estate capable of seeing rent increases, and the stocks of companies with the power to pass on price increases and/or the potential for rapid earnings growth.
So while there is no way to know, with any certainty or probability, if the actions of today will lead to inflation tomorrow, the best time to think about how you’re prepared for that future is now. It may not happen, but if you wait until it’s obvious, it’ll be too late. And if you want more help thinking it through, you can always review Warren Buffett’s comments on inflation over the years as one avenue for some guidance.
A Must Watch Video
Lessons From Experts
40 ‘Invaluable’ Investing Lessons From Tony Deden
Joel Greenblatt and Rich Pzena on Active Management
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Upgrade to Premium in the month of March and we will send you a Co/Investor Club T-shirt. Click the button to see a full list of Premium Membership benefits.
Insider Transactions
Are you interested in the summary of microcap insider buying and selling? Take our Twitter Poll to let us know.
We are in the process of building our process and system for summarizing key insider transactions so that we can save our Premium Members time and help alert them to meaningful insider activity.
Advance Your Exposure
Don’t hesitate to send us your investment ideas and opportunities and we will share them with our Premium Members. mp@coinvestorclub.com
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If you have not already upgraded your membership…
Avenel Financial Group, a merchant banking and advisory firm located in Charlotte, NC launched a new business venture called the Co/Investor Club. The Co/Investor Club is a community of value-oriented investors that collaborate on investment opportunities and ideas. You are receiving this newsletter because you are a Free or Premium Member of the Co/Investor Club!
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The country that eats the most tacos is….
Norway! According to a study in 2012, the taco is by far the most popular dinner on Friday in Norway - 400,000 Norwegians eat tacos every single Friday.