December 22, 2014

Most Recent Post

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 […]

Nancy Silverton of Le Brea Bakery in Los Angeles came to the set and prepared a creme fraiche custard brioche tarte in a white wine sauce Baking with Julia Child

A Recipe So Good It Brought Julia Child to Tears

Back in 1997, Nancy Silverton of Le Brea Bakery in Los Angeles went to Julia Child’s home studio and prepared a creme fraiche custard brioche tarte in a white wine sauce.  The execution was so good, and the recipe so perfect, that at the end of the segment, when she takes a bite, it brings Julia […]

Searing Chuck Roast for Dutch Oven Recipe

Do Any Of You Have a Steak Brandy or Cognac Butter Reduction Recipe?

Ten or eleven years ago, I went to a steakhouse in Omaha, Nebraska during a trip home from college.  The chef that day had decided to make either a brandy or cognac reduction sauce using the drippings from the beef.  Feeling adventurous, I decided to order off menu and see what it was like.  The […]

Hershey Icon for Investment Post

Investing in The Hershey Company Has Made Generations of Investors Rich

As we approach the end of 2014, I’m looking back on the year.  One of the major changes from an investing perspective what a modification Aaron and I made in the investment policy manual.  That doesn’t happen often.  We added a handful of companies to the list of permanent business; those companies we consider so […]

Ghost Ship Passive Investment Portfolio

I’m Building a Ghost Ship Portfolio for Someone; A Sort of Index Fund on Steroids

I’m putting together a retirement portfolio for several people I know.  One of them is proving to be a fun intellectual exercise.  Essentially, the mandate calls for me creating a ghost ship of a portfolio that, once it has set sail, will drift almost untouched for the next 30+ years when it will be gifted to the […]

Closeup of Caramel Pecan Apple Pie Josh and Aaron

A Really Easy Caramel Pecan Apple Pie Recipe You Might Want to Try

I mentioned yesterday that I baked a caramel pecan apple pie.  We had some surplus homemade pastry dough and granny smith apples from the two granny smith apple pies I made on Thanksgiving, using my favorite apple pie recipe.  I wanted to try something different, and needed to find another apple pie recipe that didn’t require […]

My Mom Cooking in Her Kitchen

There Is a Huge Staub Cookware Sale Going On Right Now!

A lot of you have written me over the years about picking up your own French Oven or Dutch Oven given that they last forever, are one of the best tools to have in the kitchen, are so versatile, and can make cooking certain types of recipes much easier.  I never deviate on my past […]

Baking Apple Pies in the Oven

Happy (Early) Thanksgiving Everyone!

Aaron asked me if I would make a couple of my apple pies for Thanksgiving with my family tomorrow.  It’s been awhile since I baked this particular pie recipe.  He brought it up three or four times, each entreaty accompanied by ever-escalating puppy dog eyes, so I knew he wanted me to do it even though I […]

Mount Olympus Awards Letterman Jackets Machines

Varsity Letter Manufacturing and Dragon Age Inquisition

My posting schedule has fallen behind because it’s crazy around here.  Three of my younger siblings have birthdays this week (three of the four Kennon children are now 30 years or older, which is an odd thought), I’m going to visit my grandmother several hours away, I’m swamped at the office since this is our […]

Even More Posts

Il Lazzarone Pizza St Joseph Missouri

You Should Try the Wood-Fired Italian Neapolitan Pizza at Il Lazzarone

We met up with friends at a new wood-fired Italian Neapolitan pizza restaurant that opened 45 minutes north of Kansas City called Il Lazzarone.  This is the same group with which we regularly try new restaurants, though I’ve been terrible about posting them all over the years.  We sat inside for hours talking about everything from economics, rental […]

Obamacare Premiums Unaffordable

I Just Saw the Obamacare Health Insurance Premium Estimates … God Help the Middle and Lower Classes

Out of curiosity, I ran the numbers for the health care premiums on the upcoming Obamacare enrollment period as if Aaron and I were two regular people, looking for health insurance in the general market.  The results are insane; completely, totally detached from reality.  This means that now, not only do we here in the […]

Charitable Index Funds

Mail Bag: Do You Still Hold Index Funds in Your Charitable Foundation?

It’s been a long time, but here’s an update on the charitable foundation … Mr. Kennon, Unless I missed it, I believe it has been many years since you talked about your foundation (foundations?) and the passive investment approach you use for it/them.  Do you still buy index funds?  Has anything changed?  I enjoy hearing […]

Nestle Dividend History and Trendline 1982 to 2013

November Is for Buying More Nestlé Shares

It’s been a long time since I’ve talked really about Nestlé SA other than mentioning it in passing last week.  It’s on my mind because this morning, I had my parents acquire some more in their personal portfolios, which I intend for them to hold for the remainder of their lives (which should be at […]

Gratuitous Transfers Wills Intestate Succession Future Interesta nd Estate and Gift Taxation American Casebook Series West Fifth Edition Cover

Is It Moral for Society to Protect Spendthrift Trust Assets from Tort Claims?

I told you two nights ago, in a post about digital price tags and retailing, that one of my cousins was getting married yesterday.  On the drive to the ceremony, I was reading a book I bought sometime in the past few months (I can’t remember when or where I purchased it – it just showed […]

Digital Price Tags

Are Digital Price Tags the Future of Retail?

A cousin of mine is getting married tomorrow.  Aaron and I were out shopping for the wedding gift, coordinating with other members of the family on the phone to decide if we should all get separate gifts, combine certain gifts to get something much nicer, or what.  We ended up going to Kohl’s and settling on […]

Polygamy in the United States

Mail Bag: Do You Think Polygamy Will Be Legalized in the United States?

Over the past few years, I’ve received a lot of questions about the role of polygamy in American society and, in some cases, whether I think it will ever return and whether I think it should be legalized following its restriction in the 19th century.  Since I’m working on several other mail bag responses I’m about […]

Grocery Store Tomatoes

We All Won the Lottery (Yet People Still Think the World Is Going to Hell)

I’ve been busy with family stuff lately, and, as part of that, taken several trips to the grocery store over the past few days.  I was standing in the produce section looking at the fruits and vegetables when I experienced a sense of awe.  It’s a human tendency to take for granted the things into which one […]

Niece Birthday Kennon

It’s Been Two Weeks of Birthday Parties and Cakes

Both of us have eaten more cake in the past ten days than we have in longer than we can remember.  We attended a birthday party for our niece, who turned seven years old this month.  That is something I find hard to believe because it seems like yesterday I was posting about her 3rd birthday […]

McDonalds National Labor Relations Board

For the Second Time This Year, I Added More Shares of McDonald’s to the KRIP

After writing about buying British stocks for the KRIP, particularly Diageo, I thought I should mention that I picked up some more McDonald’s shares for that particular portfolio as part of the same set of trades.  The hamburger giant reported a much bigger than expected 30% plunge in earnings as a result of maelstrom of woes that has […]