Co/Report

Share this post

Co/Report

coinvestorclub.substack.com

Co/Report

The Dawning of Wisdom

Co/Investor Club
Mar 19, 2023
3
Share
Share this post

Co/Report

coinvestorclub.substack.com

Investor Education: Angel Investors

An angel investor is an individual who provides backing to start-ups or early-stage companies. Angel investors typically invest their own capital rather than capital from institutions because the companies are too small for venture capital firms to be interested. In exchange for their funding, angel investors generally receive company equity, allowing them to participate in the future success and profits that the company generates. The amount of equity an angel investor receives can be negotiated between company executives and will depend on the amount of risk the angel investor is undertaking.  

Read our overview of Angel Investors Here!


The Dawning of Wisdom

“Acknowledging what you don’t know is the dawning of wisdom.” —Charlie Munger

Last week, we started with the depositors at two banks being rescued. And then, another big bank, Credit Suisse, was looking like it might be in a little trouble until the Swiss National Bank gave it a lifeline. But then it looked like maybe there were still issues and that it would need more than just a lifeline, and possibly be acquired, which may or may not have happened in the short time between when we finished writing and publishing this newsletter.

And then, yet another bank, First Republic, went from being in trouble, to being rescued, to then maybe potentially being in trouble again.

The market followed the volatility of the news. After some ups and downs, the S&P 500 climbed 1.4% during the week, and the Nasdaq gained 4.4%.

As we mentioned last week, we thought a drastic move was possible, and that’s what we got when the government essentially stepped in to back deposits of any size.

How this continues to play out is unclear. The problems at the banks so far have been mistakes of duration and risk management, not major credit quality issues as we saw in 2008.

But things are never clear. Markets involve people, and people are messy, and they change their minds, and they cause bank runs, and they stop bank runs. Knowing that we can’t know how the future will unfold is the first step in positioning ourselves for the unknown unknowns we’re always destined to run into eventually.

“We are too narrow-minded a species to consider the possibility of events straying from our mental projections, but furthermore, we are too focused on matters internal to the project to take into account external uncertainty, the ‘unknown unknown,’ so to speak, the contents of the unread books.” —Nassim Taleb

“It is often said that ‘is wise he who can see things coming.’ Perhaps the wise one is the one who knows that he cannot see things far away.” —Nassim Taleb

“If I have any advantage, it’s probably that I know when I know what I am doing, and I know when I don’t know what I am doing. That’s key in the securities business.” —Warren Buffett


Tweets of the Week

Twitter avatar for @charliebilello
Charlie Bilello @charliebilello
The Regional Bank ETF is down 28% in the last 2 weeks, its 2nd largest 2-week decline ever. Only March 6-20 in 2020 saw a bigger loss. $KRE
Image
9:47 PM ∙ Mar 17, 2023
259Likes77Retweets
Twitter avatar for @mastersinvest
MastersInvest.com @mastersinvest
“The banking business is no favorite of ours. When assets are twenty times equity - a common ratio in this industry - mistakes that involve only a small portion of assets can destroy a major portion of equity.” - Warren Buffett
3:07 AM ∙ Mar 13, 2023
239Likes56Retweets
Twitter avatar for @paulg
Paul Graham @paulg
The first step to starting a startup has nothing to do with "entrepreneurship." It's to develop deep technical expertise of some sort, so that you look at the world with informed eyes.
10:32 AM ∙ Mar 14, 2023
3,714Likes546Retweets
Twitter avatar for @IAmMarkManson
Mark Manson @IAmMarkManson
If you can find a way to make a problem fun you’ll never have to worry about willpower again.
10:07 AM ∙ Mar 14, 2023
1,441Likes219Retweets

Mike Pruitt Foundation Baseball Clinic

Founder of Co/Investor Club, Mike Pruitt hosted the 16th annual Pruitt Foundation baseball clinic this week. The Pruitt Foundation is dedicated to the advancement of youth baseball in Horry County, SC. The Coastal Carolina University baseball team led and instructed 150 kids in hitting, base-running, fielding, and throwing fundamentals. Thank you to all who support this cause!


In Case You Missed it…

The End of Silicon Valley (Bank)

How Complex Systems Fail

Some thoughts on Charles Schwab

The Business Brew Podcast: Dan Zwirn - Unconstrained Opportunities

Private Equity Deals Podcast: TaylorMade – David Shapiro (KPS), (S2.EP.03)

A Bit of Optimism Podcast: Down A Rabbit Hole with Seth Godin

Press Release: Sanofi to acquire Provention Bio, adding to portfolio TZIELD, the first disease-modifying treatment for the delay of Stage 3 type 1 diabetes (T1D)


If you have not already upgraded your membership…

Sign Up Premium Member

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.

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.

3
Share
Share this post

Co/Report

coinvestorclub.substack.com
Comments
Top
New
Community

No posts

Ready for more?

© 2023 Co/Investor Club
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing