Learn from the gurus.

Better be wise by the misfortunes of others than by your own.
Aesop

He who is not courageous enough to take risks will accomplish nothing in life.
Muhammad Ali

My goal is not to fail fast. My goal is to succeed over the long term.
Marc Andreessen

Knowing yourself is the beginning of all wisdom.
Aristotle

Never let knowledge stand in the way of truth.
Ajahn Brahm

We just focus on a few outstanding companies.
Warren Buffett

What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact.
Warren Buffett

It’s not enough that we do our best; sometimes we have to do what’s required.
Sir Winston Churchill

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Compiled by the experts at Sophic Capital

With Poker and Investing, Know the Game Your Playing and Master Your Strategy with Annie Duke by Robert Kraft

January 20, 2021 – I’m very excited for this episode. As you see in the title, my guest today is Annie Duke. One of my earliest memories of watching sports, believe or not, was watching the 2003 and 2004 World Series of Poker. Seeing legends like Chris Moneymaker and Greg Raymer win the title, then all the tournaments in between, was so cool, and all I wanted to do was play poker. Another stand out amongst the greats playing these now televised events was, you guessed it, Annie Duke. Since retiring from the game in 2012, Annie is an author, corporate speaker, and consultant in the decision-making space. Annie’s latest book, How to Decide: Simple Tools for Making Better Choices, was released in the fall of 2020 from Portfolio, a Penguin Random House imprint. Her previous book, Thinking in Bets, is a national bestseller. As a former professional poker player, she has won more than $4 million in tournament poker. During her career, Annie won a World Series of Poker bracelet and is the only woman to have won the World Series of Poker Tournament of Champions and the NBC National Poker Heads-Up Championship. Prior to becoming a professional poker player, Annie was awarded a National Science Foundation Fellowship to study Cognitive Psychology at the University of Pennsylvania. Annie is the co-founder of The Alliance for Decision Education, a non-profit whose mission is to improve lives by empowering students through decision skills education. She is also a member of the National Board of After-School All-Stars and the Board of Directors of the Franklin Institute. In 2020, she joined the board of the Renew Democracy Initiative. Long story short, she’s incredible, and I’m still wrapping my head around what I learned from speaking with her. Read More

What The Boom In Fraud Says About The Current Market Environment by Jesse Felder

January 20, 2021 – “Crashes and panics often are precipitated by the revelation of some misfeasance, malfeasance, or malversation (the corruption of officials) that occurred during the mania. One inference is that swindles are a response to the appetite for wealth (or plain greed) stimulated by the boom; the Smiths wanted to keep up with the Joneses and some Smiths engage in fraudulent behavior to do so. As the monetary system gets stretched, institutions lose liquidity and as unsuccessful swindles seem about to be revealed, the temptation to take the money and run becomes virtually irresistible.” -Charles P. Kindleberger, Manias, Panics and Crashes  This quote was recently brought to mind as a result of the sheer volume of fraud that has been uncovered recently. It’s a testament to just how much greed has been stimulated by the boom and validates the fact we currently find ourselves in the midst of a mania. Most recently, I was struck by the blatantly fraudulent photo released by a space-focused company looking to cash in on the recent boom in speculative interest in that area of the stock market. Read More

The Transcript: Weekly Quotes from Earnings Calls by Avondale Asset Management 

January 18, 2021 – Vaccinations are happening around the US and the world.  It’s been a little slower than hoped but that may be because of the logistical challenges of administering vaccines at long-term care facilities.  We are on the cusp of mass dissemination, and there should be enough capacity to make sure that the population is vaccinated quickly. We’ve lost a year of our lives to COVID but the finish line is (hopefully) in sight. Vaccination should unleash a huge amount of pent up demand. Banks, which started to report this week, have showed that credit performance metrics have been better than anyone dreamed possible in March of 2020. They’re releasing reserves and preparing to return capital to shareholders. Tech spend is also booming.. Read More

Always Be Thinking Ahead by Ian Cassels

January 15, 2021 – In 2020, many of us outperformed. But to be honest — 2020 was a year that made most of us look a lot smarter than we are. All you had to do was own some technology stocks, not sell them, and you were up 50%+. Apple (AAPL), the largest public company in the world, was up 80% in 2020. Amazon (AMZN), the second largest public company in the world, was up 76%. Tesla (TSLA) was up 740%. I communicated to my IFCM investors in my Q4 Letter, “We don’t want to downplay our accomplishments, but truth be told we aren’t sitting around hand slapping and grab-assing about the past. We are focused on the future and this is where we will spend the remainder of this letter.” Read More

Forecast 2021: The Stock Market by John Maudlin

January 15, 2021 – This will be the third part of my 2021 Forecast Series. You can read the first two parts here and here. The general theme has been “On the Gripping Hand.” Science fiction writers imagined a three-handed alien race with a left hand, right hand, and a very strong Gripping Hand. 2021 is the year of the Gripping Hand, and COVID-19 is what’s gripping us. Making a forecast without the virus at its center is pointless. All that being said, today we are going to focus on my stock market expectations. As I promised last week, this is a “Generational Call.” For reasons we will go into below, I think we are at a pivot point for stocks, with some clear exceptions I will outline. So maybe like generational call* with an asterisk. Read More

Something of Value by Howard Marks

January 2021 – If asked about possible silver linings to this pandemic, I would list first the chance to spend more time with family. Our son Andrew and his wife and son moved in with Nancy and me in Los Angeles at the beginning of the pandemic, as they were renovating their house when Covid-19 hit, and we lived together for the next ten weeks. There’s nothing like getting to spend months at a time building relationships with grandchildren, something we were privileged to do in 2020. I’m sure the impact will literally last lifetimes. Read More

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The bought deal @UGE_Intl announced this morning has now been upsized from $5 million to $6.1 million.

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Real-time monitoring of air quality is critical to controlling viral transmission. BioCloud detects for the presence of COVID-19 by continuously sampling the air in the places we gather.

Learn more: http://ow.ly/31PH50DcOdt

#COVID #SafeSpaceTech #Innovation #AirQuality #Ontario

The bought deal @UGE_Intl announced this morning has now been upsized from $5 million to $6.1 million.

https://sophiccapital.com/investment-ideas/uge-international/?qmodStoryID=8903156420033667

$UGE.CA $UGEIF

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External Resources

The Transcript

Each week as we read dozens of transcripts from earnings calls and company presentations, Avondale Asset Management takes note of interesting and important quotes from management about the economy and industry trends.

The Felder Report

Take the financial road less traveled with Jesse Felder, who began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California.

MicroCap Club

Founded in 2011, MicroCapClub was created to be a platform for experienced microcap investors to share and discuss microcap stock ideas trading on US and Canadian markets.

Memos from Howard Marks

Howard Marks, Director and Co-Chairman of Oaktree Capital Management, shares knowledge of the future of investing in these insightful memos.

Planet Microcap Podcast

The Planet Microcap Podcast offers education the next generation of investors in microcap stocks.

Connecting the Dots

John Mauldin helps individual investors and institutions develop a clearer understanding of the forces driving the global economy and investment markets.

The Weekly Profit

Robert Ross's free weekly newsletter where he reveals the most effective ways to make a fortune with safe dividend stocks.