Fellow investors,
If you received this email, you signed up for my newsletter on my website: whiteoutcapital.com.
My original plan was to host this newsletter on Squarespace (where my website is hosted), but I’ve decided I don’t want to pay them a second subscription fee to send a few emails per year, so I’ve migrated all of you to Substack, which is free.
I’m working on a new idea, but don’t have anything to share at the moment.
2023 was a great year. My son was born in early December and my wife, dog, and I have enjoyed welcoming him into our new life.
My portfolio finished up ~50% +/- 1-2% depending on the method used to calculate return.
In 2024 I have a few investing goals:
Find one new investment
Sell nothing
Continue working through my A-Z search of all microcaps in the US, CA, UK, AU, and NZ.
Much of my return in 2023 was possible because of research and decisions I made years ago. Likewise, my expectation in 2024 is that I’m planting seeds now to bear fruit in 2027 and beyond.
Furthermore, even though 2024 has only just begun, I view my returns as pre-determined in the sense that, if I stick to my goals above, my 2024 return will be based mostly on the decisions I made over the past few years.
Goal #2 is typically the most challenging for me, and while I own several long-term holdings, I haven’t had a year with no sales in quite some time.
In 2023 I experimented with a handful of special situations/trades. Some worked out well, such as WWE (merger), SPHR (spin-off), and META (value trade); others did poorly, such as LVO (spin-offs); and the results of HUR.L might not be known for a few years. Overall, special situations didn’t drag down my returns, but I’ve realized they are not my style. I’m best at high-quality, long-term investing where I consider my positions borderline permanent.
I don’t plan for this to be a typical Substack where you will receive regular content. Not only do I not have time to produce such content or do the work required to build an audience to make it worth it (post often on Twitter, be a guest on podcasts, etc.), but I don’t have enough good investment ideas to share writeups monthly or even quarterly.
You may not hear from me for several months or quarters at a time, but know I’m always out there searching for my next investment.
That’s all I have for now.
-Zack
thank you for sharing micro/nano caps stuff. appreciate the time taken especially in such an abandoned space. too many pebbles to turnover for gems