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You can expect weekly investment news, insight and ideas. If you have investment opportunities, please share them with us at mp@coinvestorclub.com and visit our website for more info.
White Paper: Co/Investor Club Case Study
“The strongest force in the universe is Compound Interest.” - Albert Einstein
Equity markets around the world have produced hundreds of stocks which compound at high rates over sustained periods, these are known by several names, including “Multi-Baggers,” “10-Baggers,” and “100-Baggers.” The companies that compound returns over a sustained period exhibit many similar characteristics and, while finding these stocks is by no means easy, an investor with the proper disposition and ambition can track them down.
We are excited to share the resulting White Paper: Super Compounders
Click here to download Co/Investor Club Case Study: Super Compounders
This paper is the first in a short series we will publish. In the coming weeks we will be sharing deeper looks into some of the individual traits of a Super-Compounder.
Chanticleer in the News: Joe Moglia
The Coastal Carolina University Chanticleers make big news both on and off the football field. Joe Moglia, former Chairman of the Board and CEO of TD Ameritrade and former CCU head football coach was featured on several media outlets to help put the recent Reddit- driven short squeeze into perspective.
Former TD Ameritrade CEO Joe Moglia on Reddit-driven short squeeze
Regulating the Reddit Revolution
Coach Moglia also gave some great advice about Designing the Right Jobs for the Right People last year that is worth re-visiting from time-to-time.
You’re Invited to Lunch at the Club
Quality investors present their best investment ideas.
Join us on Wednesday, February 17th 12:00-1:00 EST for a presentation by Kenny Orr, Founder, CEO and CIO of KORR Aquisitions Group.
Exclusive Opportunities
Upgrade to Co/Investor Club Premium Membership for only $100 annually to access investment opportunities and deal flow. Click the button to see a full list of Premium Membership benefits.
Amazon and Scale Economics Shared
This week, Amazon announced that Jeff Bezos would be stepping down as Amazon CEO later this year. At Co/Investor Club, we’re always trying to find great growth stories before the rest of the world realizes them. The Amazon news reminded us of one great investor, Nick Sleep, that understood the enduring nature of Amazon’s growth before most—thanks to his understanding of the Scale Economics Shared dynamic in some businesses. As Sleep wrote to investors in his 2008 Nomad Investment Partnership Annual Letter (when Amazon’s stock price finished the year around ~$50 per share):
Scale economics shared operations are quite different. As the firm grows in size, scale savings are given back to the customer in the form of lower prices. The customer then reciprocates by purchasing more goods, which provides greater scale for the retailer who passes on the new savings as well. Yippee. This is why firms such as Costco enjoy sales per foot of retailing space four times greater than run-of-the-mill supermarkets. Scale economics shared incentivized customer reciprocation, and customer reciprocation is a super-factor in business performance.
…And it works online: Amazon have deployed it so well that Amazon’s operating costs (per dollar of sales) plus its operating margin are less than some of its high street peers’ costs (per dollar of sales). This offers the prospect that, in theory, Amazon’s high street peers could price their products at net income breakeven and still not undercut Amazon’s prices or profitability. For these high street competitors the game is over. They will leak revenues to more efficient rivals as customers respond to the incentive of consistently low prices and convenience. Over time high street rivals, and less successful online rivals, will need to restructure, change their product, or go out of business. We estimate Amazon’s immediate hinterland of high street rivals have combined revenues of U$150bn in the US alone. If these firms go away over the next ten years, as Circuit City, Woolworths, Zavvi and others have recently, and Amazon picks up one dollar in ten of their sales, then this alone would be enough to quadruple Amazon’s US revenues over the next decade.
In Case You Missed It…
Greenhaven Road Capital Q4 Investor Letter
Charge Enterprises Inc. Accelerates Paris Rollout by Leveraging Existing Bike Sharing Infrastructure
Tandy Leather Factory Buys Back 5.5% of the Company’s Stock
IMAC Expands Florida Presence With Tampa Clinic Acquisition
Ballantyne Strong Announces Sale of Convergent Media Systems for $23 Million
Podcast Highlight
KindredCast: Barry Diller in His Own Words
Coffee with The Greats Podcast: The Late Herb Kelleher - Founder of Southwest Airlines
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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