We hope you enjoy the gathering of family and friends (zoom or in person) during this week of tradition and celebration. Our team wishes you a safe, healthy and happy Easter, Passover and spring break.
Shortly after my wife and I got married, we went to a funeral for an elder family member. When we arrived, there was something unusual that stood out to me. I noticed that each nursing home resident was carrying a spoon. I racked my brain for what this could resemble and after the service I asked a lady why they all had spoons.
She said, “every night at dinner, when the servers take our plates they say keep your spoon because the best is yet to come.” Which, of course, is a reference to dessert coming soon. Now, it’s a tradition to bring a spoon to funerals to signify that the best is yet to come.
The spoon is a symbol of hope, peace and excitement. So, grab a spoon…the best is yet to come this spring and for the Co/Investor Club.
- Mike Pruitt, Co/Investor Club Founder
How Many Eggs to Put in Your Basket?
How diversified should you make your investment portfolio? There is no one answer to this question, although there are plenty of opinions. There’s a saying that “Concentration builds wealth. Diversification preserves it.” But it’s more complicated than that. It’s more a question of psychology and circumstance than it is math.
As we hinted in our Qualitative Metrics white paper, some of the great investment success stories of all-time, such as Sam Walton or Warren Buffett, were built through concentration in a single business—although Wal-Mart continually diversified geographically and Berkshire Hathaway continually diversified into new business lines. But holding one stock, or a handful of stocks, and the volatility that goes with it isn’t for everyone.
What do we recommend? It’s personal—as in, it should be personal to each and every investor to think about and decide his or her own comfort level. If you don’t mind volatility in pursuit of higher returns, you may want to concentrate. If you think that concentration would make you stay awake at night, you may want to pursue more diversification. With the growth in tax-efficient ETFs and the cost of trading around zero these days, it’s easy to find ways to diversify. And not too difficult to re-create popular asset allocation strategies, such as the All Weather Portfolio, a strategy inspired by David Swensen, or The 60/40 Solution.
As is often the case, we’ll let Warren Buffett have the last word on the topic:
“If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification.”
Ham? Turkey? Pigs in a blanket and lobster & corn fritters?
For the golfers out there, it’s that favorite time of year again. The best in the world will head down Magnolia Lane in pursuit of the Masters title at Augusta National Golf Club.
Last year, we were happy to see a fellow Chanticleer slip on a green jacket. The champion gets to pick the menu for the following year’s Champions Dinner, and Dustin announced the menu this week.
In Case you Missed it…
Kenny Orr, founder of KORR Acquisitions and Co/Investor Club Premium Member presented Medallion Financial as his best value stock idea last month at Lunch at the Club - KORR Acquisitions files 13D in Medallion Financial. Sees value on Industrial Bank
Jonathan Boyar, Chairman of Boyar Value Group and Co/Investor Club Member is a shareholder of Madison Square Garden Entertainment and MSG Networks. Boyar criticized a merger deal between the two companies as having “absolutely no strategic rationale” and for undervaluing MSG Networks. To read more click here.
Charge Enterprises March 2021 Shareholder Letter
The BACKSPACE launched a website
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: @coinvestorclub1
LinkedIn: Co/Investor Club
For our disclaimer please visit our website