Saving investors from mutual funds
Cale Smith
Two huge things happened over the weekend:
Regarding the first, I’ll leave it at, “God bless the U.S. Navy Seals.” Wow.
Also – Steve Kiel of Arquitos made the WSJ’s Deal Journal, getting quoted at length on the Berkshire meeting. Check it out!
Cale Smith
I have been thinking quite a bit lately about the future of Spoke Funds®. And I’m happy to say I think I’ve figured some things out.
Namely – how to make it all easier. Everything from launching a fund to running the business. How to make it all turnkey. And how to make the next group of funds even better.
I’ve still got quite a bit to confirm – with the lawyers first, and then the programmers. But I think it can all work, and I think you’re gonna dig it. Let me get a few more things checked out first before I get in the weeds.
During all of this recent navel-gazing, Spoke Fund® also became an official trademark, too, which I suppose is a good sign of sorts. I’ll get to that more soon, as well. But no worries. It can be licensed by good guys in exchange for fine meats and cheeses.
So, have had my head down on Spoke stuff lately, and likely will for another week or two still. The eBook, alas, has been on the shelf while I run all this other stuff down. My apologies if you’ve been waiting patiently, but I’ll be dusting it off again soon – and I think it will be better because of this recent tangent.
Right now, there’s still a lot I don’t quite know about where this whole concept might go, but I now have a clearer idea of where I think I’d like that to be. Plus, I’ve got some delusions of grandeur, naturally. And I guess I also have got a bit more perspective lately on where Spoke Funds might fit in the world.
It seems, if you’ll humor me, that there is really an ideological conflict to be fought here. And by ideological, I mean philosophical as opposed to political.
In one corner, we have the frenetic and unbridled pursuit of unclaimed profits inside a massive cyclonic fracas of instant transactions. This ideology is characterized by rampant trading, chronically insatiable appetites, terabytes of source code, a conspicuous lack of morality, and the fleecing of principals at the hands of their own agents.
Plus – hookers and cocaine!
According to the therapist in that movie, anyway.
Let’s just call this ideology “Streetism.”
This world is a cacophony of nonsense. Anonymity and leverage are the scourge of this age. Technology’s role is as jackass-enabler. High priests on every screen exude confidence and charisma. And algorithms are the alchemy that make it all spin.
Here’s the thing, though.
Profit should be earned, not engineered.
Managing money can be a noble profession. And personal financial gain is not the most important goal when managing other people’s life savings.
So there is a contender. An authentic kind of stewardship that respectfully grows others’ wealth.
Let’s call this “Spokeism.”
For fund managers, it’s a harder road than Streetism, to be sure, but the rewards are greater, too. At least in the non-pecuniary sense.
And I don’t think it’s enough for most investors to know that they’re free from one broken system. I think they want to find another one.
I think Spoke Funds can be on that new path. Maybe not for every investor, but for enough. And it’s not really necessary to wage constant war on mutual funds. I mean, it’s kind of fun, but it’s not the point. I think we just need to give investors a real way to opt out.
And that, in a nutshell, is where I think I’m going.
Back with my ducks more in a row in a bit. And thx for the patience.
Cale Smith
Apologies for the delays between posts lately…head down on a handful of things lately, including the ebook. May be another week or two until I can get back to a regular posting schedule here. Open for guest posts from any of you guys, too – just email me.
Also happy to say I had four great conversations over the holidays with other new potential Spoke Fund® managers. So, stay tuned for more this year from those studs.
In the meantime, wanted to float an idea about getting together again this year. In the back of my head, I’d been thinking we could do something here in the Florida Keys again this spring, but had a pretty attractive option come up this week that I think might be worth considering.
In short, I’m thinking we could have our meeting at the Marco Island Marriott in Marco Island, Florida, this September.
Marco Island is very nice, and is located in Southwest Florida – near Naples, if that’s any help. I’ve got a friend down here who puts on a big conference there every year (completely unrelated to investing) but who can hook us up if we want to give it a go…meaning we’d sort of lob on to the same contract terms he’s got with the hotel, and get the same low rates on rooms, access to the penthouse suite for a cocktail hour of sorts, and a little space to get together and talk shop.
His conference runs from mid-week to Saturday night, and then, essentially, we’d kick things off on a Sunday afternoon, and run all day Monday. Basically, you’d pay for your own room, and sounds like everything else would be below-cost. Can come early or stay late and bring the wives and kids, too, I suppose.
In terms of an agenda, thinking we could do an intro to Spoke Funds® again for newbies, but also focus more on the business side – maybe some lessons learned from each portfolio manager when it comes to marketing, tech tools, that sort of thing. Got some ideas about guest speakers, too – including plugging some of you guys in.
Also thinking it would be cool to give each attendee some time in front of the group to pitch their highest conviction stock and get some investment ideas going, too.
In any case, figured I’d throw that idea out there. Still don’t know the exact date in September yet, and despite the potentially posh setting, this event in my head is still a much more informal get-together than the hotel pictures below might imply. “Informal” as in – I’ll be wearing flip flops and a Lebron jersey.
What do you think? Please leave comments on the boards here. Thanks!
Here are a few pics of the hotel. Nice, eh? Especially for $150 a night, ah reckon…
