March 3, 2015

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PepsiCo 1982 Investment

Pepsi vs. Coca-Cola Investment Returns Over My Lifetime

When Aaron and I were at the World of Coca-Cola in Atlanta, we thought about buying our niece and nephews some gifts from the retail store but ultimately decided to give them something more valuable: Stock.  We’ll make another transfer to the custodianships I setup last year, modeled partly after the one we established for […]

Warren Buffett 1962

The Earliest Known Clip of Warren Buffett Unearthed

It is absolutely nuts to me to see this clip of Warren Buffett that was discovered.  In it, he was just shy of 32 years old, roughly the same age I am now.  He was completely unknown outside a tiny circle of people, though rich, wasn’t one of the richest men in the country (let alone […]

Jocelyn and Erika Raglan Road Downtown Disney

Lunch at Raglan Road in Walt Disney World with Old Friends

On the way back from spending the week with friends, Blake and Karen, on Captiva Island, we decided to take a detour to meet up with two other old friends we don’t get to see very often, who happened to be at Walt Disney World.  We were heading toward Tampa and re-routing to Orlando would only a […]

Captiva Florida Gulf of Mexico

Visiting Our Friends at Otter Banks on Captiva Island

After we visited The World of Coke at the Coca-Cola headquarters in Atlanta, Georgia, we traveled another 600 miles to Captiva, an island off the coast of Florida where we’ll be staying for the rest of the week.  Our friends Karen and Blake got married – you met them years ago when we had dinner at […]

World of Coca-Cola Admission Tickets

On Holy Ground: We Visited the World of Coca-Cola in Atlanta, Georgia

We woke up in Atlanta, Georgia this morning and decided to go to one of the most sacred spots in the entire Western Hemisphere: The World of Coca-Cola.  What might appear as a mere beverage to some is practically a cult in the South.  Coke reigns over this city like royalty thanks to the fact […]

I'm Okay

I’m Okay!

I’ve been away from the site for awhile and I see there are a few dozen comments I need to read (if you wrote me something and haven’t received a response, yet, I’ll try and get to it either tonight or tomorrow).  There were some business matters to which I had to attend that required my full […]

President Obama Foreign Tax Increase Proposal

About That Proposed One-Time $280 Billion Tax on Foreign Corporate Profits …

President Obama’s administration has announced that he wants to impose a one-time tax levy of up to 14% on the $2 trillion in foreign profits American companies have built up and not repatriated in exchange for making repatriation on future foreign profits that were subject to at least a 19% tax rate tax-free, encouraging domestic […]

QVC The Moon a Planet or Star

Watch QVC Hosts Debate Whether the Moon is a Planet or Star (and a Lesson on Basic Economics)

If you need something to brighten up your day (or make you feel despondent depending on how you look at it), this is living proof that all you have to do to be successful in life is give people what they want at a price that is higher than the cost it takes you to deliver […]

Mail Bag Joshua Kennon Pen

Mail Bag: 30-Year Treasury Bond Prices

It seems about that time, once a year, when we talk about long-term Treasury bond yields. Mr. Kennon, How much money have you made since 2010 shorting the 30 year treasury bond? What is your prediction for 2015? Thank you, Fred R. Fred, Earlier this month, I broke out our five-year performance record.  We ended the […]

Stir the chili pot together and turn the heat up to medium

Wendy’s Chili Recipe (and a Business Lesson from Wendy’s Founder Dave Thomas)

Back when Dave Thomas left his discipleship of Colonel Sanders of Kentucky Fried Chicken fame to go off and start the hamburger chain that we now know as Wendy’s (which he named for his daughter, Melinda) one of my favorite things he did was find a way to reduce waste – and thus costs – […]

Unequal States Inome By State

How Much Money Does It Take to Be In the Top 1% By State?

We’ve had fun over the years answering the question, “How much money does it take to be in the top 1%?” and even looked at the breakdown of how the top 1%, as a class, generates its money.  If you enjoyed those posts, hold on to your seat because there is a new report out that […]

Houang Stephane
M Le Macaron 
Macaroons from Bordeaux (France) from Flickr.   Image made available under Creative Common Attribution 2.0 Generic License

A Basic Overview of What Happened with the Swiss Franc and Nestle’s Share Price

By now, all of you know what happened recently with the Swiss Franc, Euro, and, as an extension, the price change of Nestlé shares in the United States.  It caused a stream of messages to come in through the contact form like I haven’t seen in a long time, all with the same theme.  Here […]

Mount Olympus Awards Manufacturing Letterman Jacket Awards

French Stocks, Protestantism, and Old Money

One of the reasons I haven’t been around much this month is I’ve been working with members on both sides of my family, adjusting portfolios now that we are in a new tax year, reviewing plans to make sure everyone is on track for retirement, and dealing with some paperwork that includes a nightmare of […]

Joshua Kennon Aaron Green 5 Year Investment Results 2014

Thoughts on Stock Market Benchmarks (and an Update to Our 5 Year Investment Returns)

Over the past 3-4 months, I’ve had a lot of people write me asking about benchmarks as they pertain to their investment portfolio.  I haven’t had time to respond to these messages so I’m going to address the broader topic here and use it as a sort of catch-all to explain how I think about […]

Tulsa Race Riot Official Report 2

The Night Black Wall Street Burned to the Ground

When I became obsessed with investing as a child, convinced it offered me the greatest probability of escaping what I saw as an economic dead end due to the community in which I lived, I spent years reading everything I could about any and every event tied to the financial markets and those who shaped […]

Lysol Reckitt Benckiser

About that Reckitt Benckiser Spin-Off of Indivior …

Have you ever woken up one morning to find that you are suddenly, directly, in what amounts to the synthetic heroin business?  That you’re making money off of cocaine addicts and alcoholics trying to kick the habit?  Such are the unexpected oddities of holding a well-diversified, strong investment portfolio. Awhile ago, I had my mother acquire shares […]

Even More Posts

Red Shotgun Thermos Joshua Kennon

Wrapping Presents and Getting Ready for Christmas Eve

We’re at home wrapping presents, baking cookies, and getting ready for the family dinners that are coming up in the next couple of days.  Since Aaron and I are gifting stock this year – almost all of the transactions were completed yesterday with a settlement date of the 26th – there isn’t a lot left for us […]

Center for Science in the Public Interest

The New York Times Shows What 2,000 Calories Looks Like: The Mental Models of Math Estimation

The average healthy adult should eat roughly 2,000 calories per day to maintain a recommended weight.  In the United States, all else equal, the average male, at 5’8″, should weigh between 140 pounds and 172 pounds.  The average female, at 5’4″, should weigh between 114 pounds and 151 pounds. In study after study, the typical person underestimates […]

JP Morgan Benefits of Saving Early

The Power of Compounding, Student Loan Debt, Communism, and Stealth Wealth

A friend of mine, a nuclear engineer, once explained that he doesn’t bother to contribute to forums or message boards when the topic of nuclear energy is brought up anymore because people are irrational about it, interested in their own confirmation bias rather than learning or having an honest discussion.  Almost everyone I know working in […]

Liquidity Discounts IRS

How to Give Shares of Stock as a Christmas Gift

I am sometimes asked how to buy shares of stock as a Christmas gift for someone, often a younger family member such as a child, grandchild, niece, nephew, godson, goddaughter, or, in a handful of cases, retired parents who could use the additional passive income.  It can be a wonderful idea that teaches a lot of […]

Exxon Mobil 2013 Annual Report

Watching Oil Decline 45% Has Made Me Excited

The global benchmark for crude has collapsed an astounding 45% since the summer, with no sign that it will abate anytime soon.  Historically, this is nothing.  To see what a real oil crash looks like, you should read old news articles, magazine essays, and biographies to get some context.  I remember $10 a barrel oil […]

Facebook Valuation

Here’s an Astounding Stock Market Fact You Probably Haven’t Heard

Imagine that I raise $225 billion.  I create a new business called Kennon Super Company, Inc.  We then go out and buy seven other companies using that money, paying the current market capitalization of the public stock.  A flurry of paperwork follows and, by the time it is all settled, this is what our business […]

Retail Gasoline Real vs Nominal Inflation Adjustment Prices

Make Sure You Measure the Right Things in Life

With all of the talk of gas prices falling, I’m reminded of the situation a couple of years ago when fuel costs were on an upward trajectory.  Everyone from the little old ladies at church to major economic commentators were lamenting the “record high” energy expenses.  Very few people noticed that, as per the U.S. Energy Information Administration […]

Mail Bag Joshua Kennon Pen

Mail Bag: Secret Buy and Hold Investing Millionaires

Be careful of drawing mistaken conclusions based on faulty leaps.  This holds true in your personal life, your portfolio, and your business.  Just because one statement is true does not make another statement false; a distinction that can serve you well if you remember it. I recently read an article discussing Buffett and his methodology and […]

CME Building Wikipedia

Foreign Currency and Your International Investments

One of the more interesting problems you’ll face as you amass more capital is how to approach the issue of foreign currency income, either in the form of dividends, interest, rents, or capital gains.  You can solve this problem by reminding yourself that, ultimately, money exists to be used – either by yourself, your heirs, or […]

Making Almond Clusters Josh and Aaron Kennon Green

It’s Time to Make Christmas Candy as Gifts!

We’re making Christmas candies, chocolates, and cookies as part of our gift strategy this year.  I’m probably most excited about trying my hand at the Jacques Torres Nougat Montilimar, which is going to require a deft hand.  (It looked promising, and we stopped in one of his chocolate shops in New York a few years […]