Over at the Investing for Beginners site, I just published a blog explaining that the best investment is in yourself, as I have repeatedly said. This came as a result of a Wall Street Journal article that explained unemployment levels for college graduates, which is only 25% of the population, is still incredibly low. In fact, the unemployment level for college graduates is half that of the general population. What angers me is the guy who didn't go to college, when asked about his reason, … [Read more...]
At What Point Does Your Life Stop Being Mommy and Daddy’s Fault?
September 20, 2010 By Leave a Comment
Banks Brace for New Basel III Regulations
September 11, 2010 By Leave a Comment
According to The Wall Street Journal and The Financial Times, regulators from 27 countries are meeting in Basel, Switzerland right now to hammer out tough new banking rules designed to prevent another catastrophic global meltdown like the one that occurred in 2008. These new rules, called Basel III because these are the third incarnation of the banking framework, will require banks to keep a minimum of 7% of their balance sheet in equity (money belonging to owners, or net worth), which … [Read more...]
The Price of Happiness? Science Confirms It Is $75,000 Per Year
September 11, 2010 By 2 Comments
In a major peer-reviewed study from Daniel Kahneman and Angus Deaton from the Center for Health and Well-being at Princeton University, the great debate of psychology - can money buy happiness? - has finally been answered. It turns out, it can up to a point. This isn't some quick news poll either, it is a serious scientific finding resulting from analysis of 450,000 responses, providing a significant sample size. Defining the Two Types of Happiness The study begins by defining two types of … [Read more...]
How to Solve the Trade Deficit – Part IV
August 31, 2010 By 2 Comments
This is part of my special on How to Solve the Trade Deficit. You can read Part I, Part II, or Part III if you missed them. The Increased Competition for Jobs Is Domestic, As Well You mention that standards of living have fallen, despite gains in things like iPods with 25,000 songs and the ability to connect instantly through the Internet. The thing is: In many respects, it isn't true - standards of living haven't fallen - unless you fit one specific demographic, which we'll talk about in a … [Read more...]
One Very, Very Good Thing About the Financial Reform Bill That Just Passed Congress
July 16, 2010 By Leave a Comment
I don't care what anyone tells you, I want you to listen to me very, very carefully: Although I cannot give an opinion on the financial reform act that just passed Congress because I haven't read it yet, I can say that the provision that requires all derivatives other than those used for "commercial purposes" to be traded on a regulated exchange is absolutely, positively, 100% required if we have any hope of avoiding a collapse like we had following the failure of Lehman Brothers. I realize, … [Read more...]
We’ve Taken Sides in the Johnny Weir v. Evan Lysacek War
May 3, 2010 By 1 Comment
Around the office, we discuss weighty issues - recent Supreme Court cases, appropriate regulation of derivatives, pricing of complex options trades, etc. For the past week, however, the water cooler talk has been the somewhat quasi-feud between Johnny Weir and Evan Lysacek. Unfortunately, I've gotten sucked in because as I'm reading Fortune and The Wall Street Journal, a lot of people I know and care about are (I'm sad to say) reading People, US, and the other tabloid magazines. One can … [Read more...]
Working on the Book and Investing
April 27, 2010 By 1 Comment
I decided to start working on the book again today (forgive the HP notebook; I had to use a specific program that required Windows so the MacBook Pro is elsewhere until I recall it). I ended up watching the Goldman Sachs testimony to Congress. The culture of Wall Street doesn't appeal to me. All this complexity ... committees, VAR, derivatives cubed ... it's madness. Just find a place to invest your money, earn a decent return on it, and use the lowest cost capital … [Read more...]
Department Store Sales Make Me Really Happy
March 14, 2010 By 2 Comments
Although I'm normally a Nordstrom's guy myself, I have to say that after reading an article a few years ago (The Wall Street Journal or The Financial Times maybe?) about the vastly improved quality of department stores suits such as the J.C. Penny brand thanks to the use of expert tailors in Hong Kong for a fraction of the price and trying out the difference for myself, I have been genuinely shocked at how good the improvement is. I waited until a 50% off sale and bought a couple of suits for … [Read more...]
Would You Please Stop Blaming the Banks?
March 9, 2010 By Leave a Comment
Everyone in the media is blaming the recession on the fact banks were willing to make bad loans. Yes, they were. And most of the stockholders of those institutions (re: the owners) have been wiped out, or effectively wiped out so the term "bail out" isn't appropriate except for the idiots in the executive suite that caused the problems. Yet, it seems they are overlooking one basic, simple fact: No one made homeowners borrow money to buy an asset that was overvalued and that they could not … [Read more...]
Our Value Investing Research Process for Stocks
March 8, 2010 By Leave a Comment
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...]
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. 
