Argentinian President Millei should think twice about endorsing memecoins!…
ON MIKE’S MIND
…and we know which of these two we would put our money on if Mr. Millei climbed into the investing ring with value investor, Warren Buffett! The Co/Investor Club doesn’t pay attention to meme coins.
We do, however scour the investment world to find real value.
At the pace of change, it’s often hard to know what’s true. As Scott Galloway said recently, after a lunch with Microstrategy’s Michael Saylor, he felt he should go ALL IN on Bitcoin.
But a couple of hours later, he’s wondering “WTF is Bitcoin anyway?”
His advice is close to ours — take a small position on novel alternative investments like crypto.
But keep your eye on the prize: TOP private fund managers. TOP lead investors (like Branded Hospitality with our recent Big Chicken offering). TOP experts that have proven themselves in their asset class.
We will continue to scour multiple asset classes to find you hidden VALUE. And so again I urge you - to get front row seats to enter our private investment groups, be sure to upgrade to Premium Membership before rates jump 83%.
To Our Co/Prosperity,
Mike
THE MARKETS
US stocks plunged as economic data fueled fears of slowing growth and rising inflation.
S&P 500: -1.79%, DJI: -2.36%, NASDAQ Composite: -2.84%
The 10-year yield fell 4 basis points this week to 4.43
US Existing Home Sales fell 4.9%, and Consumer Sentiment dropped to 64.7, the lowest since November 2023
Cryptocurrencies continue to struggle, falling back after last week’s recovery
BTC: -2.25%, ETH: -4.16%, XRP: -8.08%
UnitedHealth Group fell by over 7% after the DOJ opened an investigation into questionable Medicare diagnoses
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Stories The Club is Watching
Berkshire Hathaway - 2024 Letter to Shareholders
Typically, we reserve this section for a few key stories we want to highlight for the week. However, this week, we want to ensure you don’t miss this year’s annual letter from Mr. Warren Buffett. Some of our favorite parts from this year’s letter:
“Pete Liegl was a natural.”
“Greg (Abbot) has vividly shown his ability to act at such times as did Charlie”
“Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”
Bertie’s cane
WISE WORDS
"The world is not driven by greed. It's driven by envy. The idea of caring that someone is making money faster [than you] is one of the deadly sins. Envy is a really stupid sin because it's the only one you could never possibly have any fun at." - Charlie Munger
Reflections on the Week…
This past week brought quite a shock to supporters of Argentinian President Javier Milei. Last Friday, in a now-deleted tweet, Milei promoted a cryptocurrency known as Libra. The coin quickly climbed to just over $4.50 before collapsing due to the eight insiders who had “sniped” the coin at its onset. They sold almost $100 million in value, leaving optimistic investors holding the bag at $0.18 within 6 hours of launching. Milei now claims that there was no such tweet.
There is a fantastic interview with Hayden Davis, CEO of Kelsier Ventures, which structured and directly profited from Libra, on YouTuber Coffeezilla’s second channel. For those unfamiliar, Coffeezilla is considered the “boogeyman” of crypto, investigating and calling out various scams. That makes it so surprising that Davis, who had been refusing to do calls, reached out to be interviewed. Davis pulls back the curtain about how some of these deals are put together and expresses his fears for his life after being part of this “deal gone wrong”.
Now look, Milei isn’t the first President to push a cryptocurrency, and we doubt he will be the last. We have seen a notable spike in activity surrounding memecoins such as Dogecoin and the recently infamous HawkTuah Coin. While they may provide short-term gains for those who time the market perfectly, most retail investors lose money in these zero-sum games.
Memecoins tend to share a few common characteristics: they thrive on viral appeal rather than fundamental value, rely on insider information to “extract value,” and often have an exclusive group of insiders with a significant percentage of holdings inflating the market cap. Unlike Bitcoin, Ethereum, or XRP, which attempt to build use cases around decentralization and smart contracts, meme coins often emerge as little more than speculative assets.
The pattern is nothing new. Greed, FOMO, and herd mentality - always play a crucial factor in human behavior. It’s easy to get swept up when your neighbor's child made $50k selling a memecoin online. Soon, you and everyone else begin wondering if you should get involved in what seems like a can't-lose opportunity. But of course, we’ve all seen it play out before: tulip bulbs, dot-coms, NFTs—the story remains the same. Remember when Jimmy Fallon held up a picture of his Bored Ape NFT for which he paid $219,000 and was subsequently copied and pasted everywhere on the internet?
It wasn’t until recently that we started including Bitcoin, Ethereum, and XRP in our market recap. Like much of the investing world, we are split on our views of cryptocurrency as an investment. Some, like Bill Miller, are bullish on the long-term outlook and believe cryptocurrency could dominate the global economy. Others, like Nobel laureate Eugene F. Fama, famous for the efficient market hypothesis, argue that if cryptocurrencies work as intended, they challenge the entire foundation of monetary research as we know it.
What we know for sure is that cryptocurrency is becoming increasingly popular for portfolio management and that there is historical evidence of cryptocurrency having an important role as an alternative investment in portfolios. As such, we will continue to report and discuss established cryptocurrencies until Fama is proven right.
The allure of quick profits will always exist, but true financial success is built on discipline, research, and sound decision-making. You know your portfolio, your risk tolerance, and your strategy. The recent controversies surrounding meme coins and political figures serve as reminders to trust yourself first and foremost… and, of course, always be careful of who and what you promote.
The Savvy Investor…
Coming Right Up! Morgan Stanley’s Capital Market Predictions
What the Markets Are Telling Us About IPO’s
Pain into Profits: The Secrets of Great Founders
Green Automaker turned Brown, tries to wash itself clean with Chapter 11
Airbus’ new Jet capitalizes on Boeing’s struggles
Publisher’s Note:
Whither Ukraine?
Whither the Abraham Accords?
Whither Doge?
Whither the price of eggs which are too damned high?
Markets generally don’t like uncertainty but the American markets are sure holding up, the stellar value in an uncertain world.
For now.
Once again, we at the Co/Investor Club believe that the BIG GAINS are to be made in select microcaps (more on that next week) but mostly in the private investment world.
This past week, we began a series of alliances with specialists in some of the most exciting private markets and will regularly be bringing you their exclusive insights in issues to come.
The new look and the new directive of the Co/Investor Club is to bring you the BEST investment opportunities out there.
And hey - if you have your eye on - or your hand in - something that’s promising, reach out to us at Mike’s email below.
This community is here to support us all - and we know many of our readers are doing great things.
For now, the end of a long, harrowing week on the news cycle.
I’m signing off for the day to enjoy my 3 year old, kick a ball around, hit the trampoline out back, stare at the sky.
Then it’s back in the trenches tomorrow, seeking the best of the best opportunities for you.
Have a great Sunday,
Adam
Publisher, The Co/Investor Club
p.s. Again - Please go here to learn more about the many benefits of becoming a Premium Member of the Club now - while we still have our 83% discount for current subscribers.
And have a great week!
If you have not already upgraded your membership…
Chat with Mike
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