ON MIKE’S MIND:
While eyes are on the big indexes, we are closely watching the MicroCap world.
Talk about the Mouse That Roared!
In today’s AI-powered world, you no longer need a massive team to build a billion-dollar business.
In fact, people like Sam Altman are talking about one-person companies reaching a billion dollars in revenue.
How? With lean tech stacks, automation, and agentic AI tools, small companies can now move faster, smarter, and cheaper than legacy giants.
Scaling tools that used to cost millions are virtually free.
This levels the playing field—and makes microcap stocks more appealing than ever.
Just look at SoundHound AI (SOUN), which exploded after deals with Hyundai and Oracle, or Ginkgo Bioworks (DNA), once a microcap, now a biotech force.
In a world where code scales and AI thinks, agility beats size. Microcaps aren’t just underdogs anymore—they’re quietly becoming titans in the making.
Watch this newsletter for insights into which Microcaps are breaking out.
With respect and resolve,
Mike and The Co/Investor Club Team
Investing Together. Building Legacy.
******
THE MARKETS
The S&P 500 reached a new high for the first time since February this year as tariff fears are yesterday’s news
S&P 500: +1.73%, DJI: +2.18%, NASDAQ Composite: +2.22%
A major fall in years this week as the Fed’s favored inflation gauge holds steady
The 2-year fell 16 basis points to 3.90, while the 10-year fell 12 basis points to 4.38
I can’t wait for the housing crisis to be solved with fartcoin and dogecoin
BTC: +3.26%, ETH: -0.49%, XRP: +2.15%
WISE WORDS
“In my case, if one out of five opportunities is interesting enough to work on, maybe one in five of those ends up being worth doing. That might be a function of risk. That might be a function of price. There are all the variables. But you have to be constantly sorting and choosing and prioritizing.”
- Sam Zell
WATCH OUR FRIENDS AT “GOING PUBLIC”
…
It’s time!
In case you’ve missed it, Season 3 of "Going Public" on X is a groundbreaking reality series that follows entrepreneurs as they navigate the high-stakes world of launching an initial public offering (IPO).
Blending business drama with personal stories, you’ll see raw ambition, financial strategy, and market mayhem in real-time.
And it’s produced by our friend Darren Marble of Issuance — in which we are investors.
The real kicker - this week, investors all over the country are investing in the companies they have been following week after week.
Nutcase. Employer.com. OmnicoGolf.
Let us know what you think of them.
Catch up with the action here
Reflections on the Week
Stocks are undeniably exciting, offering quick moves and hidden gems that keep investors glued to their screens. But lately, I've noticed more chatter around me focusing on something a bit steadier: real estate. This shift in conversation brought me back to thinking about one of the all-time greats in the real estate world, Sam Zell, known by the unforgettable nickname, the "Grave Dancer."
Sam Zell earned his unique nickname not from any grim activities, but from his remarkable talent for finding value in places others had long abandoned. His style was contrarian but far from reckless; Zell made his fortune by meticulously identifying and buying assets when markets were distressed and investors panicked. While many saw chaos, Zell saw clear opportunities, converting distress into significant returns with a mix of gutsy intuition and hard-nosed financial analysis.
Over more than fifty years of investing, Zell adhered closely to a straightforward yet powerful strategy: buy undervalued assets, maintain a margin of safety, and patiently wait for the market to recognize their true worth. He wasn't looking for flashy speculative plays, instead, he favored real, income-producing properties. Zell's disciplined patience and laser-focused execution meant he often turned overlooked properties into impressive profits.
One of Zell's most legendary moves was his impeccable timing during the mid-2000s real estate boom. In 2007, just before the financial crisis hit, he sold Equity Office Properties Trust to Blackstone for a whopping $39 billion.
“Any time you don’t sell, you buy. So if we had chosen not to sell Equity Office for $39 billion, we would be buying Equity Office for $39 billion.”
Perhaps my favorite story of Zell’s is from the early 1990s, Sam Zell’s fund took a controlling stake in Jacor Communications, initially a modest radio broadcaster with just a few stations for around $70–80 million. At the time, media consolidation was tightly regulated, and Jacor’s debt-heavy structure made it a distressed, overlooked prospect.
“The Jacor story was all about seeing micro opportunities in macro events… I’ve always been on the lookout for big‑picture influencers and anomalies that will direct the course of industries and companies.”
You see, Zell had an eye on a potential shift in telecommunication policy toward deregulation. In 1996, the Telecommunications Act revolutionized the industry, removing limits on station ownership. Zell seized the moment and launched a rapid-fire acquisition spree, expanding from 17 stations to 234 in just two years.
By playing this macro advantage against a micro execution plan (leveraging cheap debt, buying heavily, consolidating fast), Zell engineered an immensely profitable exit. In 1999, Clear Channel acquired Jacor for roughly $3.4 billion, plus debt, netting Zell and his partners around $1.3 billion on their original investment.
Today's investors, whether seasoned professionals or those just getting their feet wet, can take away valuable lessons from Zell’s playbook. His legacy underscores the importance of sticking to fundamental value, maintaining discipline, and viewing market swings as opportunities rather than threats. Sam Zell wasn’t just an investor; he was a master at turning economic insight into profitable action.
Of course, there’s no shame in riding the wave when the market is moving in your favor; momentum has its place. But for those with the patience, insight, and courage to zig when the market zags, the payoff can be extraordinary. Whether you’re in equities or real estate, some of the most rewarding plays are found not in the prominent trends but in the overlooked corners where value quietly waits to be discovered.
The Savvy Investor…
Using FartCoin as a Down Payment - Fannie Mae and Freddie Mac say “Sure”
Everything is an Ad Network w/ Eric Seufert
Hims and Hers don’t need Ozempic - Lawsuit between Pharma Giants
Publisher’s Note:
As we head into July 4th…
The market’s hit new highs.
Trump seems to be helping to expand the Abraham Accords and bringing new countries into a lasting Middle East Peace.
The American Military has re-established its unique dominance.
We are guessing interest rates will start to come down in 2025, which means further upside for the markets.
And miraculous tech is giving even the smallest companies mammoth-sized scaling capability.
Are we optimistic?
Yes.
Cautiously, as always.
Because we are value investors.
But optimistic, yes.
Staying alert,
Adam
Publisher, The Co/Investor Club
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