Top 50 Microcap Investors: Daniel Smoak
We present Daniel Smoak as this week’s Top 50 Microcap Investor. Daniel founded Smoak Capital Management in 2018 after years of personal investment success and to further pursue his passion for investing. Daniel is a top ranked member of MicroCapClub since being accepted in 2014, and more recently was accepted as a member of the exclusive Value Investors Club. After years of managing separately managed accounts (SMAs), Smoak Capital recently converted to a private investment fund structure.
Read our feature on Daniel Smoak here.
Value, Growth, and Intelligent Investing
Are you a value investor or a growth investor? A whole industry has evolved around defining the value and growth factors—and designing products based upon them. But there are many investors out there, including the likes of Warren Buffett and Charlie Munger, that simply consider growth an input to determining value, and not something separate to pursue on its own.
A major distinction between what many consider value investors and growth investors is price. Value investors only buy at low prices in relation to earnings (or some other metric), and growth investors ignore price and just focus on growth. But history is filled with low-multiple stocks being priced low shortly before going to zero, and growing businesses priced so high that investors in those growth businesses lose most of their money.
We opine that investors should worry less about being labeled a value investor or a growth investor, and instead strive to be an intelligent investor. Sometimes, that includes fast-growing companies. Sometimes, it does not. What exactly is an intelligent investor? Well, there is an entire book on the topic, but for a newsletter-length definition, Jason Zweig helps define it this way in his commentary in the revised edition of Benjamin Graham’s classic:
What exactly does Graham mean by an “intelligent” investor? Back in the first edition of this book, Graham defines the term—and he makes it clear that this kind of intelligence has nothing to do with IQ or SAT scores. It simply means being patient, disciplined, and eager to learn; you must also be able to harness your emotions and think for yourself. This kind of intelligence, explains Graham, “is a trait more of the character than of the brain.”
This week’s Co/Report is Sponsored by: Exclusive Italian Tours
Your next Italian getaway
Exclusive Italian Tours operates primarily in the luxury travel segment. The company custom designs and operates private tours for global executives, their staff and families. They maintain and operate expert service teams throughout the major Italian tourist markets and the south of France. They also provide active corporate tours for such notable companies as IBM, P&G and Octapharma. The tours are premium high touch and start at 400-500 Euro Per person per touring day.
If you like to speak with the Exclusive Italian Tours team, contact them here or contact the Founder, Dominick Cersiano for a no cost or obligation draft itinerary and estimate for your next premium Italian holiday. Dominick@Exclusiveitaliantours.com
Let them know you are a Co/Investor Club Member and you will receive 5% off your trip!
Q3 Investor Letters
We’ve heard from our Premium Members that one good investment idea a year will pay for their subscription many times over. In an attempt to provide that worthwhile return on investment, we’ve started compiling a summary of our favorite potential investment ideas from the investor letters that we have been reading, and continue to read as new Q3 letters are published. We’ll send the final compilation out to Premium Members over the next week or two. If you’re not already a Premium Member and want to join so that you will receive the final version, you can become a Premium Member HERE.
In Case You Missed It…
Consider Your Competition - by Chip Maloney
What do all highly successful investments share? Thatcher Martin (Spree Capital) on ebay & Upwork
Yet Another Value Podcast: Felix Narhi discusses Stitch Fix $SFIX
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.
Don’t forget to follow us on social media too!
Twitter:
LinkedIn:
For our disclaimer, please visit our website