ITEM 1. |
REPORT TO STOCKHOLDERS
|
Company
|
Market Value
|
Percentage of Equity Portfolio
|
||||||
Berkshire Hathaway Inc. B
|
$
|
5,712,320
|
16.9
|
%
|
||||
T. Rowe Price Group Inc.
|
$
|
1,704,300
|
5.0
|
%
|
||||
Franklin Resources, Inc.
|
$
|
1,625,175
|
4.8
|
%
|
||||
Starbucks Corp.
|
$
|
1,618,980
|
4.8
|
%
|
||||
Illinois Tool Works Inc.
|
$
|
1,573,650
|
4.7
|
%
|
||||
Diamond Hill Investment Group
|
$
|
1,558,529
|
4.6
|
%
|
||||
Colgate-Palmolive Company
|
$
|
1,538,460
|
4.6
|
%
|
||||
Paychex, Inc.
|
$
|
1,515,000
|
4.5
|
%
|
||||
PepsiCo, Inc.
|
$
|
1,322,600
|
3.9
|
%
|
||||
Markel Corp.
|
$
|
1,200,121
|
3.6
|
%
|
Luke E. Sims
|
David C. Sims
|
Email: luke@simscapital.com
|
Email: dave@simscapital.com
|
Phone: (414) 530-5680
|
Phone: (414) 765-1107
|
Assets
|
||||||||
Common stock--at market value (cost $20,021,746)
|
$
|
29,682,996
|
||||||
Money market funds
|
4,112,331
|
|||||||
Short-term interest receivable
|
189
|
|||||||
Dividends receivable
|
22,515
|
|||||||
Prepaid fees
|
14,580
|
|||||||
$
|
33,832,611
|
|||||||
Liabilities
|
||||||||
Accounts payable
|
$
|
3,234
|
||||||
Investment advisor fee payable
|
23,037
|
|||||||
$
|
26,271
|
|||||||
Total net assets
|
$
|
33,806,340
|
||||||
Shareholders’ Equity
|
||||||||
Common stock- $0.001 par value per share; authorized 50,000,000 shares, outstanding 4,074,321 shares
|
$
|
4,074
|
||||||
Paid-in capital
|
24,447,764
|
|||||||
Undistributed net investment income
|
106,235
|
|||||||
Undistributed capital losses
|
(412,983
|
)
|
||||||
Unrealized appreciation on investments
|
9,661,250
|
|||||||
Shareholders’ equity
|
$
|
33,806,340
|
||||||
Net asset value per share
|
$
|
8.30
|
Investment Income
|
||||||||||||
Dividends
|
$
|
237,027
|
||||||||||
Interest
|
14,884
|
|||||||||||
Total investment income
|
$
|
251,911
|
||||||||||
Expenses
|
||||||||||||
Advisory fees
|
$
|
127,495
|
||||||||||
Legal fees
|
3,425
|
|||||||||||
Insurance
|
6,962
|
|||||||||||
Transfer agent
|
21,989
|
|||||||||||
Directors’ fees and expenses
|
35,250
|
|||||||||||
Custodian fees
|
3,673
|
|||||||||||
Listing fee
|
7,658
|
|||||||||||
Other fees and expenses
|
9,509
|
|||||||||||
Total expenses
|
$
|
215,961
|
||||||||||
Net investment income
|
$
|
35,950
|
||||||||||
Realized Gain and Unrealized Appreciation on Investments
|
||||||||||||
Realized gain on investments:
|
||||||||||||
Proceeds from sale of investment securities
|
$
|
2,348,554
|
||||||||||
Less: cost of investment securities sold
|
2,761,537
|
|||||||||||
Net realized loss on investments
|
$
|
(412,983
|
)
|
|||||||||
Unrealized appreciation on investments:
|
||||||||||||
Unrealized appreciation at end of period
|
$
|
9,661,250
|
||||||||||
Less: unrealized appreciation at beginning of period
|
13,008,148
|
|||||||||||
Net change in unrealized appreciation on investments
|
$
|
(3,346,898
|
)
|
|||||||||
Net realized loss and change in unrealized appreciation on investments
|
$ |
(3,759,881
|
)
|
|||||||||
Net decrease from operations
|
$
|
(3,723,931
|
)
|
Year Ended
December 31, 2019
|
Six Months Ended
June 30, 2020
(unaudited)
|
|||||||
From Operations:
|
||||||||
Net investment income
|
$
|
338,564
|
$
|
35,950
|
||||
Net realized gain (loss) on investments
|
1,891,710
|
(412,983
|
)
|
|||||
Net change in unrealized appreciation on investments
|
4,391,548
|
(3,346,898
|
)
|
|||||
Net increase (decrease) from operations
|
$
|
6,621,822
|
$
|
(3,723,931
|
)
|
|||
Distributions to Shareholders from:
|
||||||||
Net investment income
|
(288,206
|
)
|
--
|
|||||
Net realized gain from investment transactions
|
(1,891,710
|
)
|
--
|
|||||
Total distributions
|
$
|
(2,179,916
|
)
|
--
|
||||
From Capital Stock Transactions:
|
||||||||
Reinvested capital from distribution of shares
|
$
|
1,376,635
|
--
|
|||||
Total Net Assets:
|
||||||||
Beginning of year
|
$
|
31,711,730
|
$
|
37,530,271
|
||||
End of period (including undistributed net investment income of $70,285 and $106,235)
|
$ |
37,530,271
|
$ |
33,806,340
|
||||
Shares:
|
||||||||
Shares at beginning of year
|
3,892,707
|
4,074,321
|
||||||
Shares issued to shareholder from the distribution
|
181,614
|
--
|
||||||
Shares at end of period
|
4,074,321
|
4,074,321
|
For the periods ended December 31:
|
2015
|
2016
|
2017
|
2018
|
2019
|
2020
(six months)
(unaudited)
|
||||||||||||||||||
Net asset value at beginning of year
|
$
|
9.00
|
$
|
8.52
|
$
|
8.26
|
$
|
9.14
|
$
|
8.15
|
$
|
9.21
|
||||||||||||
Net investment income
|
$
|
0.04
|
$
|
0.01
|
$
|
-
|
$
|
0.10
|
$
|
0.09
|
$
|
0.01
|
||||||||||||
Net realized gain and unrealized appreciation (loss) on investments
|
$
|
0.04
|
$
|
0.99
|
$
|
1.44
|
$
|
(0.50
|
)
|
$
|
1.61
|
$
|
(0.92
|
)
|
||||||||||
Total from investment operations
|
$
|
0.08
|
$
|
1.00
|
$
|
1.44
|
$
|
(0.42
|
)
|
$
|
1.70
|
$
|
(0.91
|
)
|
||||||||||
Distribution from:
|
||||||||||||||||||||||||
Net investment income
|
$
|
(0.05
|
)
|
$
|
(0.01
|
)
|
$
|
-
|
$
|
(0.09
|
)
|
$
|
(0.07
|
)
|
$
|
-
|
||||||||
Realized gains
|
$
|
(0.45
|
)
|
$
|
(1.18
|
)
|
$
|
(0.51
|
)
|
$
|
(0.44
|
)
|
$
|
(0.49
|
)
|
$
|
-
|
|||||||
Total distributions
|
$
|
(0.50
|
)
|
$
|
(1.19
|
)
|
$
|
(0.51
|
)
|
$
|
(0.53
|
)
|
$
|
(0.56
|
)
|
$
|
-
|
|||||||
Dilution from share issuance
|
$
|
(0.06
|
)
|
$
|
(0.07
|
)
|
$
|
(0.05
|
)
|
$
|
(0.04
|
)
|
$
|
(0.08
|
)
|
$
|
-
|
|||||||
Net asset value at end of period
|
$
|
8.52
|
$
|
8.26
|
$
|
9.14
|
$
|
8.15
|
$
|
9.21
|
$
|
8.30
|
||||||||||||
Per share market price, end of period (A)
|
$
|
7.59
|
$
|
7.35
|
$
|
7.94
|
$
|
7.30
|
$
|
8.02
|
$
|
6.66
|
||||||||||||
Total Investment Return:
|
||||||||||||||||||||||||
Average annual return, based on Market Value:
|
||||||||||||||||||||||||
1 Year
|
(6.65
|
%)
|
12.06
|
%
|
15.02
|
%
|
(1.44
|
%)
|
18.13
|
%
|
(10.15
|
%)
|
||||||||||||
5 Year
|
11.67
|
%
|
9.89
|
%
|
11.58
|
%
|
5.62
|
%
|
6.97
|
%
|
4.76
|
%
|
||||||||||||
10 Year
|
6.30
|
%
|
7.08
|
%
|
7.39
|
%
|
11.84
|
%
|
10.88
|
%
|
10.11
|
%
|
||||||||||||
From inception
|
8.55
|
%
|
8.68
|
%
|
8.91
|
%
|
8.52
|
%
|
8.84
|
%
|
7.99
|
%
|
||||||||||||
Average annual return, based on Net Asset Value:
|
||||||||||||||||||||||||
1 Year
|
1.30
|
%
|
12.19
|
%
|
17.82
|
%
|
(4.41
|
%)
|
21.35
|
%
|
(5.58
|
%)
|
||||||||||||
5 Year
|
10.56
|
%
|
12.11
|
%
|
13.19
|
%
|
6.70
|
%
|
9.20
|
%
|
7.00
|
%
|
||||||||||||
10 Year
|
6.50
|
%
|
6.44
|
%
|
8.45
|
%
|
11.55
|
%
|
11.29
|
%
|
10.59
|
%
|
||||||||||||
From inception
|
9.06
|
%
|
9.18
|
%
|
9.49
|
%
|
8.96
|
%
|
9.37
|
%
|
8.81
|
%
|
||||||||||||
Net assets, end of year (000s omitted)
|
$
|
27,788
|
$
|
29,641
|
$
|
34,064
|
$
|
31,712
|
$
|
37,530
|
$
|
33,806
|
||||||||||||
Ratios to average net assets (B), annualized:
|
||||||||||||||||||||||||
Expenses to average net assets
|
1.43
|
%
|
1.41
|
%
|
1.36
|
%
|
1.34
|
%
|
1.29
|
%
|
1.22
|
%
|
||||||||||||
Net investment income to average net assets
|
0.42
|
%
|
0.17
|
%
|
0.00
|
%
|
1.10
|
%
|
0.95
|
%
|
0.20
|
%
|
||||||||||||
Portfolio turnover, annualized
|
26
|
%
|
59
|
%
|
50
|
%
|
42
|
%
|
26
|
%
|
13
|
%
|
||||||||||||
Average commission paid per share
|
$
|
0.01
|
$
|
0.01
|
$
|
0.04
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
Common Stock (87.8% of total investments)
|
LEVEL ONE
|
|||||||||||||||
Industry
|
Shares
|
Cost
|
Market Value
|
% of Total Investments
|
||||||||||||
Bank
|
||||||||||||||||
Wells Fargo & Co.
|
10,000
|
$
|
403,661
|
$
|
256,000
|
|||||||||||
$
|
256,000
|
0.8
|
%
|
|||||||||||||
Brokerage
|
||||||||||||||||
Charles Schwab Corp
|
20,000
|
807,900
|
$
|
674,800
|
||||||||||||
$
|
674,800
|
2.0
|
%
|
|||||||||||||
Consumer
|
||||||||||||||||
Colgate-Palmolive Company
|
21,000
|
626,458
|
$
|
1,538,460
|
||||||||||||
Kimberly-Clark Corp.
|
3,500
|
352,236
|
494,725
|
|||||||||||||
PepsiCo, Inc.
|
10,000
|
168,296
|
1,322,600
|
|||||||||||||
Procter & Gamble Company
|
2,000
|
145,879
|
239,140
|
|||||||||||||
$
|
3,594,925
|
10.6
|
%
|
|||||||||||||
Credit Card
|
||||||||||||||||
Mastercard Inc
|
1,000
|
219,636
|
$
|
295,700
|
||||||||||||
Visa Inc.
|
1,500
|
225,957
|
289,755
|
|||||||||||||
$
|
585,455
|
1.7
|
%
|
|||||||||||||
Data Processing
|
||||||||||||||||
Automatic Data Processing, Inc.
|
6,000
|
169,333
|
$
|
893,340
|
||||||||||||
Paychex, Inc.
|
20,000
|
628,288
|
1,515,000
|
|||||||||||||
$
|
2,408,340
|
7.0
|
%
|
|||||||||||||
Drug/Medical Device
|
||||||||||||||||
Johnson & Johnson
|
4,000
|
45,500
|
$
|
562,520
|
||||||||||||
Stryker Corp.
|
6,400
|
27,100
|
1,153,216
|
|||||||||||||
$
|
1,715,736
|
5.1
|
%
|
|||||||||||||
Food
|
||||||||||||||||
Kraft Heinz Company
|
29,000
|
772,000
|
$
|
924,810
|
||||||||||||
$
|
924,810
|
2.7
|
%
|
|||||||||||||
Industrial
|
||||||||||||||||
Illinois Tool Works Inc.
|
9,000
|
379,352
|
$
|
1,573,650
|
||||||||||||
Waters Corp.*
|
6,000
|
302,342
|
1,082,400
|
|||||||||||||
$
|
2,656,050
|
7.9
|
%
|
|||||||||||||
Insurance
|
||||||||||||||||
Berkshire Hathaway Inc. B*
|
32,000
|
5,477,937
|
$
|
5,712,320
|
||||||||||||
Markel Corp.*
|
1,300
|
831,360
|
1,200,121
|
|||||||||||||
$
|
6,912,441
|
20.5
|
%
|
|||||||||||||
Mutual Fund Managers
|
||||||||||||||||
Diamond Hill Investment Group
|
13,711
|
2,097,120
|
$
|
1,558,529
|
||||||||||||
Franklin Resources, Inc.
|
77,500
|
2,311,283
|
1,625,175
|
|||||||||||||
T. Rowe Price Group Inc.
|
13,800
|
960,374
|
1,704,300
|
|||||||||||||
$
|
4,888,004
|
14.5
|
%
|
|||||||||||||
Restaurant
|
||||||||||||||||
Starbucks Corp.
|
22,000
|
1,212,734
|
$
|
1,618,980
|
||||||||||||
$
|
1,618,980
|
4.8
|
%
|
|||||||||||||
Retail
|
||||||||||||||||
AutoZone Inc.*
|
750
|
398,782
|
$
|
846,090
|
||||||||||||
eBay Inc.
|
20,000
|
466,995
|
1,049,000
|
|||||||||||||
O’Reilly Automotive Inc.*
|
2,000
|
407,379
|
843,340
|
|||||||||||||
$
|
2,738,430
|
8.1
|
%
|
|||||||||||||
Software
|
||||||||||||||||
Alphabet, Inc. A*
|
500
|
583,844
|
$
|
709,025
|
||||||||||||
$
|
709,025
|
2.1
|
%
|
|||||||||||||
Total common stock investments
|
$
|
29,682,996
|
||||||||||||||
Money Market Funds (12.2% of total investments)
|
LEVEL ONE
|
|||||||||||||||
Market Value
|
% of Total Investments
|
|||||||||||||||
Morgan Stanley Inst. Liquidity Fund, Treasury, 0.06%
|
$
|
4,112,331
|
||||||||||||||
$
|
4,112,331
|
12.2
|
%
|
|||||||||||||
Total investments
|
$
|
33,795,327
|
||||||||||||||
All other assets
|
37,284
|
|||||||||||||||
Accrued investment advisory fees
|
(23,037
|
)
|
||||||||||||||
All other liabilities
|
(3,234
|
)
|
||||||||||||||
Total net assets
|
$
|
33,806,340
|
(1) |
Organization.
|
(2) |
Significant Accounting Policies
|
Gross unrealized appreciation
|
$
|
11,769,581
|
||
Gross unrealized depreciation
|
(2,108,331
|
)
|
||
Net unrealized appreciation
|
$
|
9,661,250
|
||
Federal income tax basis
|
$
|
20,021,746
|
(3) |
Certain Service Providers Arrangements
|
(4) |
Dividend Reinvestment and Cash Purchase Plan.
|
(5) |
Fund Investment Transactions
|
(6) |
Financial Highlights.
|
1. |
To elect two (2) Directors, each for a 3-year term.
|
2. |
To ratify the selection of Plante & Moran, PLLC as independent registered public accountants of the Fund for the calendar year ending December 31, 2020.
|
For
|
Withheld
|
||
Robert M. Bilkie, Jr.
|
2,571,553
|
142,437
|
|
Phillip J. Hanrahan
|
2,543,547
|
170,443
|
For
|
Against
|
Abstain
|
Withheld
|
|||
2,642,422
|
35,577
|
35,991
|
0
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex
paid to Directors
|
David C. Sims,
Director, CFO, CCO,
Treasurer, Secretary
|
None
|
None
|
None
|
None
|
Luke E. Sims,
Director, President,
CEO
|
None
|
None
|
None
|
None
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex
paid to Directors
|
||||||
Robert M. Bilkie, Jr.,
Director
|
$
|
5,500
|
None
|
None
|
$
|
5,500
|
||||
Phillip J. Hanrahan,
Director
|
$
|
6,000
|
None
|
None
|
$
|
6,000
|
||||
Carl A. Holth,
Director
|
$
|
6,000
|
None
|
None
|
$
|
6,000
|
||||
Peggy L. Schmeltz,
Director
|
$
|
5,500
|
None
|
None
|
$
|
5,500
|
||||
Donald G. Tyler,
Director
|
$
|
6,000
|
None
|
None
|
$
|
6,000
|
||||
Neal F. Zalenko,
Director
|
$
|
6,250
|
None
|
None
|
$
|
6,250
|
Robert M. Bilkie, Jr.
Chairman of the Board
Northville, MI
|
Carl A. Holth
Director
Dearborn, MI
|
Phillip J. Hanrahan
Director
Whitefish Bay, WI
|
||
Peggy L. Schmeltz
Director
Bowling Green, OH
Milwaukee, WI
|
Luke E. Sims
President & CEO
Milwaukee, WI
|
David C. Sims
CFO, CCO, Treasurer,
Secretary & Director
|
||
Donald G. Tyler
Director
Shorewood, WI
|
Neal F. Zalenko
Director
Birmingham, MI
|
ITEM 2. |
CODE OF ETHICS
|
ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT
|
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS
|
ITEM 6. |
INVESTMENTS
|
ITEM 7. |
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES
|
ITEM 8. |
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
|
(a) |
Not required for the semi-annual report.
|
(b) |
There have been no changes to the Fund’s Portfolio Managers.
|
ITEM 9. |
PURCHASE OF EQUITY SECURITIES BY CLOSED END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
|
ITEM 10. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
ITEM 11. | CONTROLS AND PROCEDURES |
ITEM 12. |
DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 13. |
EXHIBITS.
|