Weekly Performers and Decliners
Data was taken from finviz.com on January 20, 2023 at 6:30 PM EST
Investor Education: 10-Q
A 10-Q is a quarterly report that public companies must file with the Securities and Exchange Commission (SEC) in the United States. The report provides an update on the company's financial performance and includes information on its revenues, expenses, assets, liabilities, and equity.
Click Here to Read our 10-Q Overview
Golf Society 319
Co/Investor Club founder Mike Pruitt, recently launched Golf Society 319.
Golf Society 319 aims to establish a network of members to the top golf clubs in America and soon the world. They strive to provide you with access to premier golf courses and the opportunity to cultivate meaningful connections with others who are passionate about the game.
Golf Society 319 is initially launching in alliance with Coastal Carolina University’s PGA Professional Golf Management Programand the Congaree Foundation. Half of all membership proceeds will contribute towards The Chanticleer Foundation which initially supports The Congaree Foundation Scholarship for young golfers pursuing a career in the ever-growing golf industry.
Below is the link to our newly launched website where one can register by clicking in the top left-hand corner. All new members receive a gift package with exclusive products and promotions from our Sponsors and Partners. Please do not hesitate to reach out to 319’s Director of Member Relations, Brianna Fleming, at bfleming@319golfsociety.com for any questions.
Oh Pooh
“People say nothing is impossible, but I do nothing every day.” —Winnie The Pooh
In his 2022 Annual Letter, Terry Smith, founder and chief executive of Fundsmith, summarized his firm’s investment strategy:
Buy good companies
Don’t overpay
Do nothing
Sounds simple, right? Well, maybe. It probably falls in that category often referred to as “simple but not easy.”
The logic is simple to grasp, and it’s often an easy process to identify certain companies that are good. The problem is those companies that are easily identifiable as good are companies everyone knows about and wants to own. And because of that popularity, it’s not easy to not overpay for those companies much of the time.
And it’s much more difficult to identify good companies that most people don’t yet know are good, where it would theoretically be easier to pay a fair, or better-than-fair, price.
And the doing nothing! That’s the hardest part of all. Unless you’re like Winnie The Pooh, it’s almost impossible for most investors to sit and do nothing, especially in the age of instant quotes and instant opinions about nearly every company, management team, and stock on social media.
“What's wrong with knowing what you know now and not knowing what you don't know now until later?” —Winnie The Pooh
Part of the reason it’s hard for investors to do nothing is that people often have loosely-held opinions about the things in which they invest their money. They either don’t understand the company well enough, don’t understand risk management, or don’t understand investor psychology deep enough to avoid letting good things run.
In his recent podcast appearance, as well as his 2021 Annual Letter, investor Chris Bloomstran told the story of his anchor client in starting his firm, Robert Brookings Smith.
Mr. Smith was a prime case study in patience, opportunism, and then doing nothing for a long time. After pivoting to cash in 1928 as the 1920s speculative boom was picking up pace, he stayed patient for a few years and then bought General Electric (“GE”) in 1932 for less than the cash on its books, and held it until it became a large percentage of the family assets in the late 1990s. As the biggest speculative boom since the 1920s was in full force, and the culture of GE had seemingly deteriorated at the same time its stock was at nosebleed valuation levels, it was finally time to sell most of the holding and re-allocate that capital elsewhere.
Most people don’t need, or have, an approximate 66-year runway of doing nothing like Mr. Smith to achieve great returns. If you can identify a good business and hold it for five or ten or twenty years, and not overpay in buying your shares, then maybe you, too, can enjoy the pleasant activity of doing nothing.
“Doing nothing often leads to the very best of something.” —Winnie The Pooh
Tweets of the Week
In Case You Missed it…
Permanent Equity’s 2022 Annual Letter: 15 Years in the Trenches of SMB Acquisitions and Operations
FOMO: The Worst Financial Trait - by Morgan Housel
How Many Stocks Should You Own? - by Chris Mayer
Behind The Balance Sheet Podcast: #19 – The Value Investor [w/ Chris Bloomstran]
Founders Podcast: #286 Warren Buffett and Charlie Munger speaking directly to you
Value Hive Podcast: Dede Eyesan: How To Find Stocks That Return 10x in 10 Years
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!
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.
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