Joshua Kennon is a Managing Director of Kennon-Green & Co.
, a private asset management firm specializing in global value investing for affluent and high net worth individuals, families, and institutions. Nothing in this article or on this site, which is Mr. Kennon's personal blog, is intended to be, nor should it be construed as, investment advice, a recommendation, or an offer to buy or sell a security or securities. Investing can result in losses, sometimes significant losses. Prior to taking any action involving your finances or portfolio, you should consult with your own qualified professional advisor(s), such as an investment advisor, tax specialist, and/or attorney, who can help you consider your unique needs, circumstances, risk tolerance, and other relevant factors.
When I wrote this post a year ago predicting the decline of individual freedom in Russia, I never could have imagined how far the country would descend in a mere eleven months. In addition to the Ukraine conflict, the anti-free speech laws that make it a crime to insult certain religious beliefs, the criminalization of any outward sign that you are gay under the guise of protecting minors, the ban of any potentially offensive words in film and art, and a host of other development that look like something out of a 20th century dictator’s textbook, the country has now passed a so-called “bloggers law” that requires any site with more than 3,000 visitors every day to register with the government.
One of the most famous value investors of the past 100 years was a man named Christopher H. Browne. His father started a small firm, Tweedy, Browne & Company, that was Benjamin Graham’s stockbroker. It was through Tweedy Browne that Warren Buffett bought his personal shares of Berkshire Hathaway, taking control of the textile mill he would…
We tried a Korean beef bulgogi recipe for dinner this afternoon, which is available online for free and is incredibly easy to make. This would be a great first recipe for someone who didn’t know how to cook so if you’ve been thinking about getting started in the kitchen or on the grill, give this one a go.
When I adopted rationality more than a decade ago, discovering that the only intelligent way to go through life was to base decisions on the preponderance of evidence, critically attacking ideas to improve thinking, and working to constantly remove assumptions from my analysis, it was akin to the conversion of Saul in Acts 9:18; scales falling from my eyes and seeing the world for how it really was for the first time. I never anticipated how painful it would be to see others remaining behind in Plato’s cave given my natural inclination to teach and help people. Even reading the articles on news stories can be unpleasant.
One of the biggest questions on my mind for the past seven or eight years, and cause for a general chronic uneasiness in my heart, has been the nature of privacy going forward as a result of technological changes.
One of the projects on my personal study plate is examining the various business models of multi-level marketing systems that rely, in part, on referral businesses paying tiered levels of commissions on sub-distributorships brought into the enterprise by existing dealers; companies like Amway, Mary Kay, and Herbalife.
Often your best investment opportunities are staring you right in the face based on situational knowledge you have due to your physical location, career, or network; things that other consumers and capital allocators don’t, yet, realize.
For my fellow cooks out there, America’s Test Kitchen has published a recipe for braised red potatoes with lemon and chives that is beyond delicious. It immediately became our permanent recipe. I can’t imagine having them any other way now that I’ve experienced these. I highly recommend you go get the recipe for yourself. It’s simple, but the preparation they use makes all the difference.
Imagine that back in 2007, you had $3,000,000 to invest on behalf of a private family investment partnership you were running. You decide to split this into three different companies. One of these was AIG, the insurance conglomerate. AIG shares fell from a high of $1,459.00 each to $6.60. The Board of Directors had to do a 20-1 reverse stock split to keep the thing from trading for less than the value of bottle caps.
I was asked, “There is a maxim of which you are no doubt aware that retail investors quote Warren Buffett, while professional money masters quote Jesse Livermore. You never talk about Livermore and I would like to know your thoughts on his philosophy.”