Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory

Cash Flow Management - The Two Levers Philosophy by Joshua Kennon

Revisiting the Two Levers Philosophy of Cash Flow Management

One of the major lessons I’ve tried to teach is that building your net worth comes down to two levers: Cash in and cash out. That’s it. That is the entirety of the game when you peer past the distractions and gaze into the heart of the mathematical reality. From a financial perspective, every action you take for your career or business ultimately only matters in so much as it someday serves to exert force on one of those levers so that more cash is flowing in than is flowing out, leaving a surplus. It sounds so simple but when you see things through the focus of this particular lens, you can more quickly identify the actions that are likely to have an outsized effect, both for good or bad, on net worth.

Read more
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…

Read more
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…

Read more
Newspaper Header

I Believe USA Today’s Money Section Is the Worst Run Financial Publication in the United States

Hands down, I am strongly convinced the single most incompetent source of regularly published financial advice or business information of any major newspaper in the United States is the money section of USA Today.  The conclusions are often outright wrong, the understanding of accounting and economics vapid, and the headlines written to achieve nothing more than clicks without leaving the reader better informed than he or she was in the beginning.  It is the fiscal equivalent of fluff, only worse because fluff can be fun without leaving an inaccurate impression on something as important as national economic policy.

Read more

Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory