This Week’s Newsletter is Sponsored By: Notes Live
“Experience the magic of Notes Live and invest in a world where unforgettable entertainment and lucrative opportunities come together in perfect harmony. Notes Live is a music and entertainment lover’s dream. As one of the fastest-growing entertainment and hospitality companies in the United States, we have created a new category for investors where you can own part of the world’s most luxurious outdoor music venues and earn a return from the profits they generate.
From The Wall Street Journal and Billboard magazine to Variety and Venues, we are renowned for luxury outdoor music venues and entertainment campuses, as well as established entertainment complexes, including Sunset Amphitheaters, Bourbon Brothers Smokehouse & Tavern restaurants, and Boot Barn Hall live music venues.”
Learn more about Notes Live at noteslive.vip
Peculiar
This past week, there was some market volatility as the Fed seemingly took a rate cut off the table for March. But the drop on that news was followed by solid earnings in the technology space that saw the indices rise. The S&P 500 rose 1.4% on the week to close at another record high, and the Nasdaq was up 1.1%
Meta Platforms was the big winner last week, which rose about 20% on Friday after it reported earnings Thursday evening. When we wrote about the company in October 2022, its market capitalization had dipped below $270 billion. On Friday alone, the market capitalization rose over $200 billion, now valuing the company north of $1.2 trillion. What a difference 15 months can make.
Buying a stock like that on the way down and holding it through to recovery can require a little fortitude—and staying invested in the market can also. As David Poppe described the process in his most recent letter:
The stock market is peculiar in its ability to deliver a satisfactory result over time in a manner that feels unsatisfying. It’s perhaps like a restaurant with amazing food and awful service. Or a slot machine in reverse: you mostly win and over time your wealth increases. But every so often you suffer a debilitating loss that causes real financial pain. On top of this, the losses generate headlines and the gains are often received skeptically.
The key to long-term success is fortitude. Warren Buffett says temperament matters more than intelligence in investing. Investors who withstood the pain of 2022 were rewarded as stocks clawed back steep losses in 2023. Investors who quit when they were behind will have a tough time ever getting their capital back.
Emotional ability to endure the ups and downs. Skill in managing risk. Questioning your most closely held beliefs. Demanding a margin of safety…. These are all things that are useful in both quiet and volatile markets.
And given that many of the things that have caused volatility during the last couple of years are still in place, we’re bound to have more of that volatility as the next 11 months of the year unfold. But there’s always opportunity somewhere.
“It’s not hard to make investments that will be successful if the future unfolds as expected. There’s little mystery in how to profit under the assumption that the economy will go a certain way and particular industries and companies will do better than others. Tightly targeted investments can be highly successful if the future turns out as you hope. But you might want to give some thought to how you’ll fare if the future doesn’t oblige. In short, what is it that makes outcomes tolerable even when the future doesn’t live up to your expectations? The answer is margin for error.” —Howard Marks
Tweets of the Week
In Case You Missed it…
A Few Thoughts on Spending Money - by Morgan Housel
Value Investing’s Renaissance Man
Increasing Returns: Identifying Forms of Increasing Returns and What Drives Them
“The Big Short” 2024 Edition | iConnections Global Alts '24 Expert Panel (video)
Founders Podcast: #336 How To Lose A Few Billion Dollars: Samuel Insull
The Meb Faber Show Podcast: Ben Mackovak on The Secret Sauce of Investing in Banks | #519
The Business Brew Podcast: The Pros and Cons of Being Public with Andrew Walker
If you have not already upgraded your membership…
Avenel Financial Group, a merchant banking and advisory firm located in Charlotte, NC, launched a 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!
Chat with Mike
Whether you’re an executive with investment opportunities or a college student looking to network, we would love to chat with you! Email our Founder, Mike Pruitt, at mp@coinvestorclub.com with questions and ideas or schedule a meeting.
Don’t forget to follow us on social media too!
Twitter: @coinvestorclub1
LinkedIn: Co/Investor Club
For our disclaimer, please visit our website.
Have friends that want to join? The Co/Report is public, so feel free to share!
Thank you for reading. Co/Report grows through word of mouth. Please consider sharing this post with someone who might appreciate it.