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 are already up 15.40%, giving a fantastic annualized return. I’m thinking about selling them but need to go back through the financial statements one more time before I make a decision.
What I really want for Christmas is for General Electric to break $20 per share because if that happens, Joshua Kennon, my friends, is going to break out the champagne. We started buying it at $6 at the height of the recession and it is already up to $15 to $16 but I have a substantial block of call options through one of my retirement plans that expire in January using a strategy that is not appropriate for anyone reading this. At this point, every $1 change in share price means a massive gain in our position value. (more…)
The average retail price for most of these works of art ranges somewhere between $3,000 and $5,000, depending upon the specific model, with many going for far more than that. They are actually cored out of a rod of solid, pure silver and built using the finest materials available on earth. When I look at them, my heart rate literally picks up and I feel this incredible urge to acquire. It’s the exact same feeling as when I see a stock that is being given away (like when we put a massive portion of our assets into General Electric at $6 per share and U.S. Bancorp at $8.50 per share back in March, watching them skyrocket between 100% and 300% in less than 90 days).
