February 8, 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...]

Educational Crisis In Black Male Population Resulting in Staggering 25% to 40% Unemployment Rate

Schott Report on Black Male Education Rates

The Good News: African American women are gaining in net worth, income, high school graduation rates, college graduation rates, and seats in boardrooms at powerful companies throughout the world.  They are going from glory to glory, success to success. The Bad News: African American men have unemployment rates as high as 40% in some areas, have incredibly low graduation rates, which results in lower income and lifetime achievement. The Question: Why?  How do we figure this growing … [Read more...]

I’m Working on a New Book

Finance Book

I turn down several book contracts a year and have for probably the past 5 or 6 years.  Despite having one of the largest investing audiences online, other than my Penguin book contract in 2006, I avoid the commitments because I don't like being tied to deadlines (even though I tend to work faster than most other people - it's just something about having control over my own time). However, I have been working on some ideas for a series of books that cover everything from finance (how to … [Read more...]

A Brief Flirtation with a Cinnabon Franchise

Joshua Kennon reading the Cinnabon franchise disclosure document

I mentioned yesterday in the article on Dairy Queen franchise owners that after graduating from college, Aaron and I had looked into putting capital to work by opening several franchises in the town where we grew up.  We thought it would be a good place to invest the money we were earning from our other businesses without having to be involved on a day-to-day basis.  In other cases, we thought it might be a good way to structure companies so that our immediate family members could make an … [Read more...]

The Bosendorfer Strauss Grand Piano – A Real Life Lesson in the Time Value of Money

Bosendorfer Strauss Grand Piano

The Opportunity Cost of a Bosendorfer Strauss Grand Piano I'm going to teach you a financial technique that can help empower you to make informed choices about your own life and keep more cash in your pocket.  I've been using it since college and it's done wonders from my bank balance and investments. From the time I was a kid and had only a few thousand dollars in the bank, I have wanted either a Steinway & Sons Model B grand piano and / or a Bosendorfer Strauss model grand piano, … [Read more...]

Our Value Investing Research Process for Stocks

Analyzing Sonic Restaurant Investment Reports Regarding Share Buy Backs

A week or two ago, I wrote an article called Understanding Stock Repurchase Plans for About.com, a division of The New York Times, which discussed Sonic Restaurant and the massive stock buy back program that had taken place over the past few years. In it, I walked the readers through a lot of the math and explained that I had purchased a couple hundred shares to watch and monitor the stock through one of my companies, Mount Olympus Awards, LLC.  (I've since increased it to about 500 shares … [Read more...]

How to Find Investment Ideas

Wal-Mart Stores Stock Certificate

Years ago, I wrote an article called Finding Investment Ideas for Your Portfolio for About.com, a division of The New York Times.  I've been thinking for the past few days about how it is that I seem to come across so many opportunities and then I realized that most people like me are always looking whereas the average American isn't. By that, I mean that every time I walk into a business, without exception, the first thought that occurs to me as I look around is, "I wonder if this company … [Read more...]

Paying for Your House with Dollar Cost Averaging

Dollar Cost Averaging Paying Off House

A close family member recently used dollar cost averaging and the power of compounding in such a creative way, that I thought it would be useful to share it.  This technique, which he developed after studying the various returns available on different asset classes, was designed to show that two factory workers, both earning the same salary, paying the same taxes, and having the same expenses, could end up with vastly different levels of wealth based on what they did with their surplus cash … [Read more...]

A Discussion on Pension Costs

It’s nearly 4 in the morning and I’m up reading political blogs; happened to come across http://cognidissidence.blogspot.com/ and enjoyed reading it. This particular entry is way off base from a financial perspective and since the author seems to be working to expose problems in government, I thought I’d take the time to explain why if any of you are interested. If not, that’s okay, too. Also, given the time, I apologize if there are errors or it is not entirely coherent. Let’s … [Read more...]

How to Make $10,000,000 After Taxes in a Few Years

Making money online can be incredibly easy if you know which metrics are important and how to focus on the right things.

I’m sitting in my investing office, looking over the river behind the property, figuring out what I’m going to do for the day. I’ve got a cup of coffee in my Seattle’s Best mug from Border’s and am listening to Roosterspur Bridge by Tori Amos. The ideal would be to plow into a giant pile of stock reports but that isn’t going to be possible for a few days because the operating businesses need my attention. We have so many opportunities over the next twelve months to explode in … [Read more...]