Welcome to the Co/Report first newsletter!
You can expect weekly investment news, insight and ideas. If you have investment opportunities, please share them with us at mp@coinvestorclub.com
White Paper
Avenel Financial Group’s (AFG) financial research analysts and interns researched the top performing Microcap investors, studied their investments, and analyzed quantitative and qualitative metrics along with the historical performance of this asset class.
In this week’s newsletter we are excited to share the resulting white paper:
A Case for Small and Microcap Investing
Download the paper now by clicking here.
Quality Investors Share Their Best Investment Ideas
Lunch at the Club is our virtual investment presentation on the 3rd Wednesday of each month. January’s presenter was Joe Koster. Joe is the Founder and Portfolio Manager at Sorfis Investments, which he launched in 2019. Joe talked about one of his micro-cap investments which he describes as falling into the category of "Heads I win; Tails I don't lose much."
Click and enter info to watch the replay.
Alta Fox Capital and Collectors Universe
Alta Fox Capital, a hedge fund in Fort Worth Texas, executed a successful activist campaign in the latter part of 2020. This saga serves as a quintessential case study for the mission of the Co/Investor Club. Attached is a write up of the series of events that created tremendous value for numerous shareholders who followed the smart money.
Click to download our overview paper.
ELF TEA
No, we’re not talking about a hot beverage consumed by little helpers in the North Pole. We’re talking about incentives.
Incentives are one of the most important things in any business—and one of the most difficult to get correct. As Charlie Munger has said, “Never, ever, think about something else when you should be thinking about the power of incentives.”
So what’s ELF TEA? It’s an acronym to help remember some of the most important items when designing an incentive system:
Easy to understand — The incentive system must be simple and easy for all to understand.
Large — Small rewards have far less influence than large ones. As an example, assume employees get a bonus on the 15th day of each month, based on the previous month’s profitability. Do you think people will care more about working toward earning that bonus if it averages 50% of their base salary compared to 1%?
Frequent — The more often you can pay, the better. A year is often too long to wait, as the reward seems too distant for many people. This can vary significantly depending on the type of business one is in, but if you’re able to, try to pay out bonuses more than once per year.
Trust — Both the employer and employee must trust the system, and trust that it is a system that can’t and won’t be cheated.
Everyone — Try and get everyone on the same plan. Some higher-paid employees might have larger individual bonuses, but we want the entire organization working together toward a common goal.
Acknowledgement — While money is nice, people also like to know that their good work was noticed. Did you have an employee that went above and beyond to help another department in order to help the whole company achieve a bigger monthly bonus? If the answer is yes, make sure to acknowledge his or her efforts.
In Case You Missed It…
IMAC Acquired Synergy Healthcare in Orlando, Florida.
Capitala Group Announces Investment In American Landscaping Partners, LLC
Amergent Hospitality Group Names Steve Hoelscher CFO
Podcast Highlight
This was a great week to listen to investors and business operators on some of our favorite podcasts…
Investor Mohnish Pabrai was on the Value Investing with Legends podcast.
Tom Gayner discussed long-term investing on The Investor’s Podcast.
Danny Meyer was on the Masters of Scale podcast discussing the last 10 months in the restaurant business.
Sverre Bjerkeli—who runs what some consider Norway’s version of Berkshire Hathaway—was on the Global Value Creators podcast discussing how he built his business.
If you have not already upgraded your membership…
Become a Premium Member
Premium membership is only $100/year and brings you closer to the deals you want to be a part of. For a full list of benefits, click below:
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!
We love to hear from you!
Email mp@coinvestorclub with questions and ideas.
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Twitter: @CoInvestorClub1
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