February 5, 2012

We Are Living in the Midst of One of the Biggest Bond Bubbles in History

McDonald's Bond Certificate Corporate Debentures

Today, I was sitting at the dining room table, drinking a cup of coffee and wearing my Brooks Brothers pajamas watching the stock market skyrocket when it occurred to me that, given the secret project and some other things going on at the business, I want to build some cash and bond reserves at one of the individual operating companies; maybe put aside money a little at a time, let it build and do something fun with it three or four years from now, like design and build a row of townhouses or … [Read more...]

Enjoying a Cup of Coffee and Reading Fortune Magazine

Reading Fortune Magazine

I'm about to sit down with a cup of coffee and read the new Fortune magazine that arrived in the mail. It has a cover story featuring the new CEO of Wal-Mart, who took Lee Scott's title a year and a half ago. Given how much I liked Scott, I want to learn more about Mike Duke. Wal-Mart has held up fantastically during the recession, staying between $50 and $55 per share. From time to time, we've held some fairly nice positions in the stock. … [Read more...]

My Birthday In Pictures

Kelsey, Tyler and Ellie at Birthday Dinner

The birthday festivities began around midnight.  Most of my family was over visiting going over some details of something we needed to discuss.  Then, later that night (er ... morning) I got an email from Molly, who sent me a charitable gift card to Kiva, a wonderful organization. I woke up to one of my most favorite breakfasts in the world - a plain, untoasted bagel with cream cheese and strong black coffee - and then my mom stopped by with cupcakes.  Aaron, my youngest sister and I … [Read more...]

Contemplations Over a Cup of 2 a.m. Tea

Wegmans Fruit Tart

It is just past 2 a.m. and I finished brewing a cup of Darjeeling tea.  I'm sitting here enjoying the fragrance of the leaves in the cup and it made me remember something ... During college, Aaron and I did our grocery shopping at the Wegmans on Route 1 in New Jersey.  Of course, living in the dorms for most of those years before we got an apartment off campus meant grocery shopping was more like picking up cereal, milk, coffee and snacks to eat at night or between meals in the dining … [Read more...]

How to Solve the Trade Deficit – Part III

Knowledge Worker

This is Part III of my special on How to Solve the Trade Deficit.  If you missed the earlier parts, you can read Part I or Part II first. How to Solve the Trade Deficit - Knowledge Workers vs. Manual Workers In many ways, your question about the trade deficit has very little to do with global trade policies and everything to do with the rise of the "knowledge worker" class that Peter Drucker predicted in 1959. Drucker, the management guru who is to executives what Warren Buffett is to … [Read more...]

Professor Richard Wolff Says Capitalism Is To Blame … for Everything

Richard Wolff on Capitalism

Amherst professor Richard Wolff, is arguing that capitalism is a failure because events like the housing crisis keep occurring with some regularity.  Evil banks are "forcing debt" on more Americans who are downing under their bills.  He proposes that we should create low cost "community owned" housing for everyone. Yes, Richard, because American Express and Discover showed up at your house, put a gun to your head and made you pick up a pen, place the tip of the pen on the cardholder … [Read more...]

The Sugar Refiner Shares We Own Are Surprising Me (and More Portfolio Updates)

Sugar Company Stock Certificate

I hardly ever talk about the portfolios I manage (the last time was when I added Campbell Soup to the blue chip reserve portfolio in Some Changes In the Portfolio), mostly because investment ideas are rare.  Still, I write about it to the same extent I would be willing to discuss something over coffee with fellow investors so here are some thoughts about what has been going on at Kennon Green Enterprises lately. The shares of the sugar refiner I had one of my businesses buy only 3 months ago … [Read more...]

Super Tycoons Facebook Update: From $100 Million to $14 Billion

Super Tycoons on Facebook Update

On May 9th, I gave an update on the Super Tycoons game I've been playing every day on Facebook in which you have to build an empire and compete against other players. I've even convinced my grandma to start playing it as a steel tycoon. When I wrote about the game back in May, my in-game businesses generated $11 million per day and my game net worth stood at below $100 million.  As of a few seconds ago, I've gotten my in-game profits to just under $500 million per day and my game net worth … [Read more...]

It’s All The Same …

But as I always say, it doesn’t matter if it’s smokey room in Washington or a board room in New York City, it’s all businessmen in suits looking out for only themselves and controlling us, the masses.  But as least in Washington, we get a vote on what color tie they are wearing. - Joseph Woodhull I was reading Joe's review of Atlas Shrugged this afternoon during a thunderstorm, curled up under a giant red blanket and drinking a cup of coffee when he closed with that. It's a great … [Read more...]

The Creed Fragrance Counter Is One of My Favorite Places in the World

Creed Bois du Portugal

This morning, I walk into my kitchen to find my grandmother and mother sitting there waiting for me, wanting to know if I want to go out and eat or spend the day together.  Long story short, the three of us, plus my youngest sister, who is in high school, end up at the Country Club Plaza in Kansas City for a day of luxury shopping and fine food.  It was what life is all about, in a nutshell; experiencing great things with people you love. Creed Fragrance - One of My Favorite Companies in … [Read more...]