Happy Easter and Passover to all those Celebrating!
Top 50 Microcap Investor List: Matt Joass
For this week’s Top-50 feature we present Matt Joass, Founder and Chief Investment Officer of Maven Funds Management. Matt’s ideal investment is a “small, fast-growing business, that is capital-light, with demand- and supply-side competitive advantages, high returns on incremental invested capital, little analyst coverage, deeply aligned management (typically founders), and that are top-dogs or first-movers in an emerging and important industry. Last but by no means least, the company must be trading at a discount” to his estimate of intrinsic value.
Read our feature on Matt Joass
How You Compete
In a new interview with Charlie Rose, Warren Buffett was asked about his competitive spirit, and used his own example to give the following advice:
You’ve got to be careful about what you compete in. It’s a good thing that I don’t have a competitive spirit in chess or football or anything like that…. I try to keep my competitive spirit in a game I can win.
Buffett was lucky that, early in life, he found a game he could win. He had a father in the business helping his interest, and then, as we mentioned last week, read every book on investing in the Omaha Public Library by the time he was 10 or 11 years old.
Finding the game was one thing and putting in the work to be able to win that game was something else. Buffett put in that effort an early age and never stopped. The same can be said of many great athletes like Tiger Woods or Michael Jordan. They had the physical gifts, but so did other players that weren’t willing to put in the time to practice and learn and improve to become great.
“If you want success, figure out the price, then pay it. It sounds trivial and obvious, but if you unpack the idea it has extraordinary power.” —Scott Adams (“How to Fail at Almost Everything and Still Win Big”)
With investing, you luckily don’t have to be a genius, and you don’t need to be 6’7” to improve your odds of success. You can compete in less-followed markets where you might be able to gain an edge, such as microcaps or distressed debt. But those are still areas that have become more competitive and require some expertise.
Maybe more important than where you compete is how you compete. In 2016, John Huber, portfolio manager of Saber Capital Management, wrote the following in a blog post about finding an edge in investing:
I think the “edge” is less about knowing more than everyone else about a specific stock, and more about the mindset, the discipline, and the time horizon that you maintain as an investor. Thinking long-term is a commonly talked-about potential advantage, but one that is much less often acted upon. If you are a professional investor that is set up to capitalize on this, or an individual investor who has the right mindset, you can give yourself a significant edge in the stock market.
Investing is a game most people can win because companies and economies grow and compound over years and decades, even if in unpredictable and often volatile ways over short periods of time. But discipline and long-term thinking are things that almost anyone can master. It’s not always easy, and it takes more effort for some people compared to others. But if you master those traits and learn enough about the game to stay out of too much trouble, you can compete and win. You may not become the next Warren Buffett, but earning decent returns over a long period of time—which allows you the freedom to live comfortably—is victory for most.
“There's only one success: to be able to live your life your way.” —Christopher Morley
DrivenIQ Company Overview
On October 14, 2021 Capstone Technolgies Group (OTC: CATG) issued a six-month working capital note payable by DrivenIQ Corporation. At the same time, one of DrivenIQ’s former partners was bought out, leaving Capstone with a significant minority interest.
As an advisor to these transactions, Avenel Financial Group has prepared a report breaking down the service offerings of DrivenIQ.
Read our DrivenIQ Company Overview
If you are interested in seeing further company updates and quarterly summaries on smart investors sign up for our Premium Membership!
Co/nversations Podcast
Join host Sam DiFiore in a fascinating Co/nversation with Andrew Martin (CEO) and Nick Peters (CIO) of Fairlight Capital. Both Andrew and Nick have unique backgrounds that help their investing careers.
This episode explores portfolio management, investing in other markets around the world, China versus the U.S. and much more!
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Tweet of the Week
You’re Invited!
You’re invited to our monthly Lunch at the Club - where top investors present their best investment ideas. Don’t miss out on our presentation on Wednesday, April 20th!
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In Case You Missed It…
Boyar Value Group’s Latest Quarterly Letter
Andy Jassy’s First Letter to Amazon Shareholders as CEO
Paul McCulley on WealthTrack: Defeat Inflation Despite Recession Risk
CapitalSpring Raises $950 Million for its Sixth Flagship Investment Fund
Podcasts - In Case You Missed It…
Yet Another Value Podcast: Bob Robotti on WLK and the revenge of the old economy
Infinite Loops Podcast: Morgan Housel — The Best Story Wins
Risk of Ruin Podcast: Inside Long Term Capital
Risk of Ruin Podcast: Zero, by Way of a Hundred [w/ John Hempton]
Richer, Wiser, Happier Podcast: William Green speaks with Jason Zweig
Planet MicroCap Podcast: Pro-Dex, Inc. (NASDAQ: PDEX): Designs and Manufactures Medical Devices
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