I’d appreciate your feedback on the following three things:
The Investment Club
The Coffee Can Club
Public Markets Rolling Funds
Please do take 2 mins to reply to this email or fill out this Google Form, and let me know your thoughts.
Thank you.
Note: The below are rough thoughts and I’m definitely open to suggestions.
One: The Investment Club
I believe great investment ideas can come from anywhere. So I want to start an investment club.
Think of it as similar to the Value Investors Club, but more collaborative.
Would you be interested in joining this?
Here’s how it could work:
What To Expect:
I’m thinking 5-10 members.
We discuss one investment idea or industry deep dive every month or two (we could do this async in an online forum or over Zoom)
Members must commit to present an original investment idea (preferred) OR present an investment related topic (eg: research, company/industry deep dive, investment theme etc) at least once during the calendar year.
Cost:
Free but there is a catch.
I don’t want people signing up and then flaking. So I’m thinking members pay say, $500 up front but get their money back once they present.
Why Do This?
Discover interesting investment ideas.
Practice your pitch, share ideas, get feedback and learn from each other.
Meet fellow investors.
Two: The Coffee Can Club
Some friends and family have asked me to share my stock picks with them in a more structured manner. They are not always monitoring my investment scorecard. I suppose I won't hold that against them :)
So I’m contemplating whether to professionalize the delivery of the Coffee Cans I share.
Is that something you’d be interested in as well?
What To Expect:
Build a Portfolio in Public:
Send Buy Alerts and Position Sizing
Designed to buy and hold for 3-5 years
Send alerts if the portfolio changes (this should be minimum)
Primary Goal:
To outperform SPY over 3 years
Stretch Goal:
To double in 3-5 years
The Inside Scoop:
A brief (and simple) 1-page summary about why each stock made the cut.
Annual Portfolio Commentary
For a 3 year period (our minimum holding period), once a year, I can share commentary about the stocks/businesses in the portfolio, how the investment thesis is playing out, the portfolio’s performance, and the broader market environment.
Most financial news is noise and frankly unnecessary, so annual commentary should be sufficient.
Periodic Mailbag/Q&A
A chance to pick my brain (if you're into that sort of thing).
I can conduct periodic Mailbag Q&A sessions, and will do my best to answer questions.
Other
Access my watchlist of stocks
Thoughts on what can be done with the portfolio after 3 years
30min Portfolio Review: If you are unsatisfied with your portfolio or simply want an unbiased opinion, I’m happy to have a look. I am not a financial advisor, so I can’t give you advice, but I can surely share my opinion. Note: this is not meant to be a due diligence call on the names you own, but a high-level discussion around portfolio construction/potential risks etc.
Candidly, I am a little hesitant to take this on, but I’m willing to give it a try, if folks are interested, and if there is minimal overhead. (Or perhaps if I can get some help).
Cost:
Since this would take up a bunch of my time, and might require some tooling, here’s what I am thinking:
The All-In Plan: $249.00 (Get all of the above)
Just The Picks Plan: $99.00 (Get just the Buy / Sell alerts)
The I’m Resourceful Plan: Free
Get the All-In Plan for free if you can help me with any of the following:
Software development
Back testing some strategies
Growth Marketing
Why Is This Paid?
Simple: I think it creates accountability.
If you’re anything like my sister or friends, you haven’t actually pulled the trigger on any of the Coffee Can investments I have shared. Am I right?
I’m not saying you should buy the coffee can stocks, but if you're paying a small fee, you're more likely to take this seriously.
Plus
It’s a relatively nominal amount, and it will create accountability for me as well. And it will support my work.
Three: A Public Markets Rolling Fund
As you may know, AngelList introduced Rolling Funds a few years ago. It’s a pretty cool and flexible product if you want to invest in startups. From what I understand, investors can choose to invest on a quarterly basis, or as frequently as they want, rather than committing to a large sum upfront. In many ways this is a way angel investors can “dollar cost average” into startups.
Anyone know what fund structure is used on the back end?
Are they simply creating a new investment vehicle every quarter?
Why do I bring this up?
Well, I haven’t seen anything equivalent to Public Market Rolling Funds. I’m not sure why that is.
But it seems like the “Coffee Can Portfolios” I’ve been sharing on my Investment Scorecard can be analogous to Self-directed Public Market Rolling Funds. One can essentially create a buy-and-hold portfolio periodically, say every 6-12 months, and then holding onto it for the following 3-5 years.
Although “liquidity” in the public markets is often touted as a positive, volatility can turn this liquidity into a negative. If you know you can’t sell something for at least 3-5 years, you will naturally gravitate towards higher quality investment ideas, and avoid short term-ism.
Question: If you are an accredited investor, would you ever invest in a structure like this?
Thank you!
Please do take 2 mins to reply to this email or fill out this Google Form, and let me know your thoughts.
I am looking forward to your feedback.