Life in the United States

You Wouldn’t Realize How Amazing Life Is in the United States By the Media Coverage

I’ve been thinking about life in the United States.  We are a massive nation that generates $15 trillion in wealth every year.  We have consolidated assets (personal, corporate, and government) of more than $200 trillion.  Our natural resources are abundant.  Our military power immense.   Going further, take a moment to consider the following: The S&P…

TreasuryDirect

If You Are Sitting on a Huge Pile of Cash, There Is Only One Place to Park It (and It Is Not In a Bank)

For the past day, I’ve been thinking about a 65 year old man named John Demetriou.  He was from Cyprus, but moved to Australia, where he spent 35 years working “days, nights and weekends in Sydney markets selling jewellery and imitation jewellery” according to The Sydney Morning Herald. Wanting to be in his home country, and…

An Academic Example of Cash Flow Differing from Reported Earnings - McDonald's Corporation

A Quick Cash Flow Statement Lesson – A Look at How McDonald’s Real Payout Ratio Is 110%, Not 54% As First Appears

McDonald’s is one of those businesses that I love.  The last time we talked about it was when I wrote the 25 Year Investment Case Study of McDonald’s, and showed how you could have turned $100,000 into anywhere between $1,839,033 and $5,547,089 depending on how you handled dividend reinvestment and the Chipotle split-off back in 2006, and the sorely lacking media coverage of McDonald’s results in February.  No matter which way you look at it, despite periods of overvaluation and undervaluation, alternating with the underlying performance and the emotional moods of shareholders, McDonald’s has been a fantastic company.  It makes its employees and shareholders a lot of money.  It gives society something it wants, whether that be a plain salad with side of fresh fruit and a non-sweetened iced tea or a double cheeseburger with french fries and a Coca-Cola.