Thoughts on Business, Politics, and Life from a Private Investor
The best advice I ever received came when my parents dropped me off at college. As they were getting in the car, my dad looked at me and said, "Your mom and I have done everything we could for you. We fed you, we clothed you and you have a high school education. From now on, it is your responsibility to make your dreams come true. We can't do it for you, and no one else can either. If you want it, you have to do it on your own." The message? The cavalry isn't coming. Do you … [Read more...]
When it comes to diversification, you have to look at your entire life and not just your portfolio. Several years ago there was a book I really enjoyed that dealt with this topic called Are You a Stock or a Bond?: Create Your Own Pension Plan for a Secure Financial Future. It explained some professions, like tenured professors, are like bonds - there is little risk of you ever losing your job, the pay it steady and almost fixed with small incremental increases based upon inflation, and you … [Read more...]
When I was a senior in high school, I bought my youngest sister, who was first grader at the time, a single share of Coca-Cola common stock for her 6th birthday. I had it framed with an engraving of the first part of Deuteronomy 8:18 placed under it, "You shall remember the Lord your God, for it is he who gives you power to get wealth". I registered the ownership as a uniform gift to minors, naming our father as the trustee. He and my mom decided to have $50 each month taken out of their … [Read more...]
Here is the best thing I heard all day ... Life is not an organization chart. Life is more like a spider's web. Things happen in strange ways. - Ross Perot There is a lot of truth in this. You cannot think lineally about your life or business. You need to think in three-dimensions. This is one of the reasons people are successful. Take my parents and their company, Chenille Appeal. How is it they were able to grow, fund significant expansion and make major technology upgrades … [Read more...]
A few days ago, I wrote a five-part essay called How to Solve the Trade Deficit in response to a reader question about trade policy in the United States. The reader, Adam, responded on his blog. Here is my followup to his commentary. I Would Love to Run Trade Surpluses But It Isn't Going to Happen If the United States were to run trade surpluses, as opposed to going trade neutral, we would be accused of mercantilism (rightly). This would immediately cause our trade partners around … [Read more...]
In the past 30 or 60 days, the amount I charged and then immediately paid off on the company's American Express card for small costs like office supplies, software, and hosting fees was more than the current market value of the house where I grew up as a child ... and it is the slowest month of our fiscal year. It is the home where I learned how to invest by reading everything I could get from the public library and where my parents started their now incredibly successful company in the tiny, … [Read more...]
I was speaking to a relative of mine when this person (who shall remain nameless) expressed horror that after living near New York for so long, I would buy a house near my parents in the Midwest. "I thought you were going places!" they basically decried in exasperation. It was then that I realized how truly stupid most people are when it comes to making money. They have no idea how capital allocation works. I started to get irritated and then I realized: If they knew how wrong they … [Read more...]
My parents, who are the type of people who work 18+ hours a day, decided to take a week off and go stay at a condo on one of those $30+ million Payne Stewart luxury golf course complexes, where they met up with my younger brother who is out of state for more military training. They just don't do this stuff but I think they're finally starting to ease up a bit after a lifetime of building because my mom decided to take a three month vacation earlier this year and just stopped coming into the … [Read more...]
Isn't that a fantastic quote? I got it from Tara Beth Workman a few days ago and I've been thinking about it since. I realize that it is entirely true and that my life is a reflection of that. All of our lives are reflections of that. Let me explain. This afternoon, Aaron and I decided to take an impromptu trip to Hall's department store because we were restless and wanted to get out of the office. Turns out, we hit a major financial milestone so rewarded ourselves by spending just … [Read more...]
Back in college, when I was the student body treasurer and chairman of the finance board, a Christian group known as Campus Crusade for Christ threatened to sue the university because they wanted to be officially recognized. The problem was they required that their elected leaders leaders sign a personal "Statement of Beliefs" pledge that included a provision affirming that homosexuality was a sin and the leader did not engage in immoral sexual conduct. This went against the university's … [Read more...]
Though the home renovations have gotten the most headlines due to their nature (constant onslaught of choices and tasks that need to be completed), one of the most important items on the agenda of the six-month project has been to drastically reduce my digital footprint. By the end of the program, I will have one personal presence [...]
This makes me sick. This high school is ranked in top 5% of high schools in the United States. The worst part of the video for me was the part where the kid says, “I was never taught that knowledge”. It’s not somebody else’s job to teach you, it is your job to seek out [...]
This is a great way to start the day … one of the reasons I love writing this blog. Joshua, [In American Households Continue to Deleverage But That Only Tells Part of the Story, you wrote] “The numbers are just figures on a sheet trying to explain human behavior. Study the behavior, what is driving [...]
We’ve been looking for a corn chowder recipe to add to the “permanent” on-demand recipe collection but most are geared toward summer when fresh corn on the cob is abundant in the Midwest. This allows you to use the rich pulp, corn juices, and kernels to create a delicious, thick chowder that can be eaten [...]
The best message I received all day in the usual flood of reader submissions … Hello Mr. Kennon, I am 24 yr old who has saved/invested incessantly since I was 18, and my portfolio just recently breached 6 digits! I have always had a similar mindset to you when it comes to the future value [...]
I'm a private investor, author, and business philosopher who started with nothing and was essentially retired by my early twenties thanks to my first Internet startup. I went to school on a music scholarship and spend my days doing what I want and growing Kennon Green Enterprises, LLC, the family holding company. Continue reading ...
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