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The Strap on my Montblanc Star Chronograph Automatic Broke (Another Lesson in the Time Value of Money)

August 18, 2010 By Leave a Comment
Montblanc Star Chronograph Automatic Watch

When I was 22 years old, or thereabouts, I bought a Swiss made Montblanc Star Chronograph Automatic stainless steel watch from Borsheim's during the Berkshire Hathaway shareholder meeting.  I wanted something that would last, God willing, for the rest of my life and would remind me of when I was young, just starting out, and successfully building my first businesses and got to hear Warren Buffett and Charlie Munger speak to me as an owner of one of the greatest companies in history.  It was an … [Read more...]

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Part I of the Next Book Is Almost Done …

July 21, 2010 By 2 Comments
Joshua Kennon Intrinsic Value Book Manuscript

Today, I should wrap up the quasi-final draft of Part I of the book, which covers somewhere between 110 and 130 pages and provides a list of virtually all of the time value of money equations that are important to new investors.  (I think the final book will end up being roughly 300 to 400 pages but I reserve the right to change that.)  It teaches: How to calculate your compound annual rate of return (e.g., "I had $10,000 five years ago and now the account is worth $31,500.  What rate of … [Read more...]

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Hey, Joshua, Why No Financial Content These Past Two Weeks?

July 12, 2010 By Leave a Comment

You may have noticed there hasn't been a lot of heavy financial articles on my personal blog for the past two or three weeks.  Some of you have written me asking the reason.  Normally, all of my best content goes to About.com and anything that isn't suitable for beginners (the more advanced stuff) gets put here as an outlet.  So ... what gives? It's simple: I'm closing in on 100+ pages in the manuscript on the next book, which is a beginner's guide to basic finance.  Thus, I'm spending … [Read more...]

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

March 10, 2010 By 3 Comments
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...]

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The Kennon Retirement Insurance Plan

March 8, 2010 By 3 Comments
Retirement Insurance Plan

One of the Things That Helped Me ... From time to time, you may come across reference to my "stupidity" insurance or my "reserve" fund.  I've had a bunch of readers write me over the years and ask about various comments I've made so I thought it might be useful to explain it.  My parents, siblings, and Aunt Donna have always known about my investing but virtually no one else did when I was a child (by the time I got into high school, though, it was all I talked about so hiding it was no … [Read more...]

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Paying for Your House with Dollar Cost Averaging

December 15, 2009 By 1 Comment
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...]

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