February 5, 2012

Escaping the Credit Card Debt Prison

Paying Off Credit Card Debt to Escape Financial Prison

When you find yourself in credit card debt it can feel like a financial prison.  Suddenly, you can't go out to eat, pick up a new shirt, or even go to a movie without worrying about the fact that you are increasing your debt or using cash that could have gone to paying down your credit card balances. Before you can figure out how to get out of credit card debt, you have to understand the reason you are in your current position.  As most financial articles and planners can tell you, there … [Read more...]

Factor In Your Income Sources When Seeking Diversification

Are You a Stock or a Bond

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...]

A Hedge Fund vs. a Mutual Fund

Joshua Kennon Mutual Fund vs. Hedge Fund

In the next 2-5 years, depending upon what happens at the private businesses we own, I am seriously considering launching either a hedge fund or a mutual fund.  Both have significant advantages and disadvantages. A Hedge Fund The Pros: With a hedge fund, I could do almost anything I can do now in private business.  This includes borrowing money to acquire real estate or whole companies.  Say I raised $100 million in assets and we had a good 15% year.  With a "standard" hedge fund … [Read more...]

The Secret World of Brooks Brothers

Before I "arrived" as they say, I had no idea how different clothes shopping was for men once they became successful.  Honestly, I never thought much about it but the assumption was that in terms of logistics, it would be just like shopping at Wal-Mart only with better surroundings, better service, higher quality and higher price tags.  You know, you walk into a Neiman Marcus or a Saks, look around at the merchandise, and then pay for it at a register if you were satisfied. I was totally, … [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...]

Five Business Lessons I Learned from My Mom, Tammy Kennon, and Her Company, Chenille Appeal

Five Business Lessons Learned

This is my mom.  You've probably read about her but never seen a picture.  She's the same one that would slip notes into my lunches in elementary school telling me how wonderful, intelligent and loved I was. Back in the early days when she and my dad started their company in a two hundred square foot garage, she would work during the day (my sister, Kelsey, and I would help run the machinery) and my dad would come home from his day-job and work the night shift. Today, she and my dad are … [Read more...]

New Wardrobe Additions for the Wedding

Kelsey and Tyler's Wedding Gift

Aaron and I went shopping today for my sister and soon-to-be-brother-in-law's wedding gifts.  We also decided we wanted to wear something new that wasn't parked in our respective closets so we headed to Nordstrom and a few other stores. I ended up going with a modern cut lavender white stripe dress shirt with mother-of-pearl buttons and a silk bow tie in the same color family, which I will wear with a charcoal gray suit with white and faint blue pinstripes.  I took a picture so I could send … [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...]

The Final Third of the Year Begins!

Autumn and Winter

I'm really excited that we are heading into the back third of the year and the schools are back in session. Third and fourth quarter generate most of our revenue and sales.  I love being well dressed, wearing a cashmere Ralph Lauren coat, and going Christmas shopping for family at my favorite high-end department stores.  I love having steak dinners at Fleming's and Ruth's Chris.  I love contributing to my retirement accounts and pension plans.  I love counting that year's profits and … [Read more...]

Pew Research Center Completes Massive Study of Millennial Generation

Marriage Ages Rising by Generation

The highly revered Pew Research Center has completed one of the most extensive studies it has ever undertaken.  It focuses on the so-called Millennial Generation, which consists of those who are currently 18-28 years old, and contrasts them with their parents, grandparents, and great grandparents on a wide range of economic, spiritual, social and cultural factors. This study includes data on everything from the total percentage points that believe the Bible is the literal word of God to the … [Read more...]