Lunch at the Club
You’re invited to Lunch at the Club! On Wednesday, July 20th from 12:00-1:00PM EST, John Gibson will present his best investment idea.
To attend our monthly Lunch at the Club investor presentations, sign up for our Premium Membership!
Watch List and Earnings Under $250M
The Co/Investor Club is launching a watch list for premium members. These companies have been profiled by investors we follow, The Co/Investor Club team internally, or by our premium members. We may or may not own the names on our watch list. We heavily encourage all members to do their own due diligence as this is not investment advice. If you would like to discuss any of the names or share a name you believe needs more attention, please feel free to reach out to sam@avenelfinancial.com.
We understand how much our premium members enjoy staying up-to-date on the small and microcap markets. Given that most investors know when the companies in their portfolio and larger companies are reporting earnings, we have decided to keep our members up-to-date on companies reporting earnings that have a market cap of under $250 million. You can log into the premium member portal each week to see which companies that have a market cap of $250 million and under are reporting in the upcoming week.
To have access both of these, please sign up for the Co/Investor Club Premium Membership.
Equanimity
“Our main business is not to see what lies dimly at a distance, but to do what lies clearly at hand.” —Thomas Carlyle
John Maynard Keynes is one of the most famous economists that ever lived. He was also an accomplished investor. Under his management, the value of the portfolio at King’s College increased by 4.8 times from 1927-1945. For comparison, the UK stock market was negative over that timeframe.
Part of this performance came because of a change to his philosophy. Keynes began his investment career as more of a trader with speculative tendencies. He ended his career as concentrated, quality investor by today’s definitions. Chris Mayer’s book 100 Baggers quoted Keynes summarizing the key points of his philosophy:
1. careful selection of a few investments (or a few types of investment) based on their cheapness in relation to their probable actual and potential intrinsic value over a period of years ahead and in relation to alternative investments;
2. a steadfast holding of these investments in fairly large units through thick and thin, perhaps for several years, until either they have fulfilled their promise or it has become evident that their purchase was a mistake; and
3. a balanced investment position, that is, a portfolio exposed to a variety of risks in spite of individual holdings being large, and if possible, opposed risks.
Part of the good performance also came from having a patient, long-term outlook that allowed him to handle volatility and down markets with equanimity. Keynes touched on this outlook in a 1938 letter, as quoted in the book How They Did It: Exceptional Stories of Great Investors:
I feel no shame in being found still owning a share when the bottom of the market comes. I do not think it is the business of … [a] serious investor to cut and run on a falling market … I would go much further than that. I should say that it is from time to time the duty of a serious investor to accept the depreciation of his holdings with equanimity and without reproaching himself. Any other policy is antisocial, disruptive to confidence and incompatible with the working of the economic system. An investor is aiming, or should be aiming, primarily at long period results and should be judged solely by these.
Equanimity without reproach. That sounds like a good formula for handling the ups and downs of markets past, present, and future—even if it’s easier to state than to always do in practice.
“If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get compared to the people who do have the temperament, who can be more philosophical about these market fluctuations.” —Charlie Munger
In Case You Missed It…
BOA Endure Earns NSF Certified for Sport® Designation
Boyar Value Group’s Quarterly Letter
Wedgewood Partners Second Quarter 2022 Client Letter
Pershing Square’s July 13, 2022 presentation on the economy
Richer, Wiser, Happier Podcast: The Secret To Building Long-Term Wealth w/ Guy Spier (Part 1)
Richer, Wiser, Happier Podcast: Habits That Create Success & True Abundance w/ Guy Spier (Part 2)
50X Podcast: TransDigm: Foundations with Nick Howley
Masters in Business Podcast: Antti Ilmanen on Expected Returns
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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