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

Benjamin Graham Value Investing Allegory

Benjamin Graham Intrinsic Value Formula

A Look At How the Father of Value Investing Calculated the Intrinsic Value of an Ordinary Share of Common Stock Benjamin Graham, the rich investor, professor, and mentor to Warren Buffett, once proposed a quick back-of-the-envelope intrinsic value formula for investors to determine if their stocks were at least somewhat rationally priced.  He encouraged investors…

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Wal-Mart Stores Stock Earnings Yield versus United States Treasury Bond Yields

Earnings Yields vs. Treasury Bond Yields as a Stock Market Valuation Technique

Using Wal-Mart Stores as an Example of Earnings Yields vs. Treasury Bond Yields I was up until 5 a.m. this morning reading through the past few years’ of Wal-Mart Stores, Inc. annual reports, filings with the SEC, analyst reports, transcripts, and other documents.  It is about time to have the businesses make another contribution to…

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Damn Right Charlie Munger Biography by Janet Lowe

A Perfect Example of Acquiring Cash Generating Assets from Charlie Munger

I’m re-reading “Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger” by Janet Lowe and came across a passage that illustrates exactly the sort of thing I’m talking about when I harp on acquiring assets that constantly churn out piles of cash for you spend, redeploy into new investments, give to charity, or…

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A Mental Exercise What I’d Do If I Lost Everything

A Mental Exercise: What I’d Do If I Lost Everything

I started thinking about people who lose everything, or what Charlie Munger calls returning “to Go”, as in the Monopoly board. Once you are rich, your primary motivation shouldn’t be to get richer, it should be to avoid wipeout risk, or returning to go.  But as a training exercise, I decided to contemplate what I would do if I woke up tomorrow and the last ten years had been a dream.  What would my first course of action be to rebuild until I got my financial affairs in order?

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Graham Newman Corporation Stockholders

The Compensation System for Benjamin Graham at the Graham-Newman Corporation

The Graham-Newman Corporation was a stock company that essentially served as a hedge fund through which legendary investor Benjamin Graham managed money for his shareholders.  It is the same firm where Warren Buffett worked in his twenties before moving back to Omaha and establishing the original seven partnerships upon which his fortune is based. According…

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Tootle-Lemon & Co. Bank

The Tootle-Lemon Bank – How One Man, John S. Lemon, Built a Nearly $25 Million Fortune from the American Heartland

John S. Lemon, President of Tootle-Lemon National Bank in St. Joseph, Missouri (the city near the farm town where I grew up before moving to the East Coast at the end of my teenage years), died on March 17th, 1905.  According to Volume LXX January to June 1905 of The Bankers’ Magazine: “He was born…

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