Letter #2 - Newsletter (re)Launch
How it will work & FAQs
This post reflects my personal opinions and research. It is not investment advice. Whiteout Capital is a publication of Eudemonia 0x1 LLC. Please read the full disclaimer: whiteoutcapital.com/legal-disclaimer
My fellow investors,
It’s been a while, so in case you don’t remember who I am or how you ended up on my newsletter list, here’s a quick bio:
My name is Zack, but I sometimes go by the pseudonym, “Whiteout.”
I’m a private investor who publishes writeups and investing research. You can view some of my public work on my website: whiteoutcapital.com. I also occasionally post here: x.com/whiteoutcapital. You may have initially connected with me after reading my writeup on California Nanotechnologies or Kraken Robotics.
I grew up next door to a hedge fund manager who sparked my initial interest in investing. I started managing my first brokerage account in 2007 when I was 14. I’m a member of Value Investors Club and MicroCapClub.
My professional career is in tech, where I’m a partner at small, profitable vertical market software company.
The Whiteout Capital Newsletter
I love starting new projects and refining processes, so I’m happy to share that after two years of slowly contemplating this newsletter and chipping away at the details of how it’d operate, I finally have all the ducks in a line.
I’m starting off with 376 free subscribers and two generous people who pledged subscriptions and have been converted to paid. To be honest, I did not turn on pledging nor did I even know that it was a thing I could do, so thank you for the early support, it was a nice surprise.
I intentionally set both the monthly and annual prices the same because I don’t intend to publish content frequently enough to justify a monthly subscription. Substack requires a monthly plan, so I’ve priced it this way to encourage people to choose annual, aligning expectations clearly. You can read more about why I’ve designed pricing this way in the FAQs below.
New position
I’ve recently taken a large position in an Asian software company that I found in January of this year. I’m currently working on a writeup, which I plan to publish in the next few months. Interestingly, a friend independently discovered this same company around the same time. Out of courtesy, I’m waiting until he’s completed his allocation before sharing my piece. This is the most excited I’ve been about an investment since I came across California Nanotechnologies in early 2023, and I look forward to sharing it with you, hopefully sooner rather than later.
How the newsletter will work (FAQs)
At some point with a project like this you have to get started and work things out over time, but I have spent a considerable amount of time contemplating how this newsletter will be structured in the beginning. To help everyone understand what they’re getting themselves into, I’ve written up a list of FAQs and answers, which are live on my about page.
So you don’t have to leave this article, I’ve also pasted the FAQs here:
What types of companies do you research?
I focus on public microcaps, but also consider myself a generalist investor and will go anywhere I see opportunity. My version of a perfect investing opportunity is a public company with little to no content written about it online that is:
Growing
Profitable
Has opportunities to reinvest at high rates of return (I typically use some form of ROIC)
Oftentimes, these companies also possess a combination of:
A recent catalyst that hasn’t materialized in their financial statements
Metrics that obscure how good the business actually is (so it doesn’t screen well)
Value accretive capital allocation via buybacks or dividends
An undesirable attribute that I believe is over-accounted for by the market and/or likely to be eliminated in the future.
While I focus my energy on paying a fair price rather than searching for deep-value discounts, I prefer companies with these attributes because they can lead to multiple expansion.
What content will you publish?
Rarely -> Writeups on new companies
These are titled as “Writeup” and are numbered “Writeup #X”
Sparsely -> Updates on companies I’ve previously covered
These are titled as “Update” and are numbered “Update #X.Y” where X is the writeup number and Y is the sequential update number for that company
Sparsely -> Thoughts on personal finance, strategy, or broader investing ideas
These are titled as “Letter” and are numbered “Letter #Z”
Writeups and their corresponding updates are posted here for better organization and navigation: https://whiteout.substack.com/p/writeups
What content is paid versus free?
New writeups are for paid subscribers only. I may make some updates on companies written up a long time ago free, but the majority will be paid only. Articles about broader investing ideas and strategy will most likely be free, but that is not guaranteed.
Do you have any public writeups?
Yes, I have a few older writeups posted on my website so that potential subscribers can get an idea for the types of companies I’m looking for and my style of writing:
4/6/23 - Hurricane Energy plc (AIM.HUR) (my successful application for VIC)
Why is the annual plan priced the same as the monthly plan?
I can’t control how many good ideas I have and when they happen. I see many investing subscriptions promote a target number of ideas per month or year and I honestly just don’t have enough good ideas to keep up. I’m lucky if I have one, maybe two per year. Some years I don’t have any I deem compelling enough to take a big position in. I intentionally made the monthly plan uneconomical because I know that I won’t be able to deliver interesting content on a monthly basis, and Substack won’t let me disable it. I consider myself more of a “slow” investor. I take my time and make a few calculated decisions per year. I want my substack to reflect how I invest rather than try to adapt my strategy to meet what the substack market wants or expects.
How often will I hear from you?
I can’t promise a quantity, range, or cadence. If I find a lot of good opportunities in a year, you’ll hear from me more often. On the flip side, there could be a year where you don’t hear from me at all. I’m not in a rush to invest, make money, or publish content. I view this as an advantage. I’m perfectly happy—and able—to wait for good opportunities, even if that means I’m inactive for long stretches. You’ll only hear from me when I think I have something interesting to share.
When will I not hear from you?
I will not offer takes on macro, thoughts on every report filed by companies I’ve written about, or respond to every question and comment that comes my way. I’m not your investment advisor, and nothing I publish is a recommendation to buy or sell securities. My writing reflects personal opinions based on public information and research. I encourage you to do your own due diligence and consult a financial advisor before acting on any idea I discuss. You all can read reports and come to your own macro conclusions.
How did you decide on a price for the subscription?
I’ve intentionally priced my subscription below most investing newsletters for three reasons:
Honesty about frequency: Given my answers to the previous questions, I hope it’s clear that you may pay for the subscription and then not hear from me for long stretches of time. I want the price to reflect that.
Freedom to stay selective: I don’t want to feel obligated to publish mediocre ideas just to meet an expected publishing cadence.
Connection, not monetization: I’m not trying to get rich off this. A side income would be nice if it happens, but I’m primarily here to meet like-minded investors and earn enough to cover my time and expenses.
Can I request a company for you to write about?
No, I don’t take requests. I write about companies I’ve personally researched and invested in. That said, I’m always open to discovering new ideas, so feel free to share what you’re looking at—I just can’t promise a writeup or any interesting insights.
Can I ask you questions about your posts or portfolio?
You’re welcome to reach out, but I can’t promise a response. I’m not offering 1:1 advice or portfolio guidance, as I’m not a financial advisor. If your question seems broadly helpful, I may incorporate it into a future post.
Do you disclose positions?
I generally disclose when I own a position mentioned in a writeup. However, this isn’t a real-time disclosure service. I don’t share position sizes, entry dates, or trade alerts.
Do you manage money professionally or offer financial advice?
No. I’m not a financial advisor, and I don’t manage outside capital. Everything I publish reflects my own thinking, research, and personal investments.
Farewell
That’s all I have for now. I plan for my next post to be an update on California Nanotechnologies for paid subscribers only. You can subscribe here if you haven’t already.
Until next time,
Zack
Legal Disclaimer
Whiteout Capital is a publication of Eudemonia 0x1 LLC, a Wyoming-based publishing company registered to do business in Colorado.
This newsletter does not provide investment advice. Full disclaimers: whiteoutcapital.com/legal-disclaimer.