It’s Been Nothing But DRIPs, UTMAs, and Trusts for Days
I’ve been setting up custodial accounts such as UTMAs, looking at dividend reinvestment plans, and more for the past few days.
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.
A Handful of Rare Businesses Enjoy Annuity Streams That Can Generate Cash for Decades
For the past hour, my mind has been on the power of some businesses to capture annuity streams that pay dividends for years, even decades or generations, with very little additional work. When you can get one of these in your portfolio, they pump out wealth as long as you update them every once in a while. They are the closest thing to geese laying golden eggs that exist outside of fairy tales.
Jack MacDonald Secretly Built a $188 Million Fortune Investing in Stocks Then Donated It To Charity
Jack MacDonald was a frugal attorney who wanted to build a big net worth to give to charity. He quietly amassed a $188+ million fortune investing in stocks.
Baking a Granny Smith Apple Pie for Thanksgiving on a 100+ Year Old Pie Board
I was up almost all night baking and cooking so my part of Thanksgiving dinner today was ready without having to rush. I finished the corn chowder my brother made me promise half a dozen times I was going to make, then followed it with a granny smith apple pie that my mom wanted, the…
Mental Model: The Psychology of Music and Its Influence on Mood and Business Results
Following the post on the Dies Irae Principle earlier, I started thinking about the role of sound in regulating mood. Thirteen years ago, I was sitting in my undergraduate freshman music theory class, having moved thousands of miles away from home to begin university. At the time, I had enrolled in the Bachelor of Music…
The Dies Irae Principle
I’ve been thinking about how differently people see the world and how that influences their view of events. Something that rolls off one person’s back can cause another to spend a week sobbing in bed, barely able to contain their grief or embarrassment. What is a minor setback to one person can be a career-ending…
Mozart, Money Problems, and Voltaire
Mozart penned one of his greatest symphonies as a result of dire financial need – something he wouldn’t have had to if he would have humbled himself and admitted that someone he considered evil, Voltaire, had something to teach him when it came to wealth management.
A Significant Minority of the Population Is Wired to Steal (and Why This Matters If You Own a Business)
We talked about theft a couple of years ago but it’s on my mind, again. I still struggle to come to terms with it, despite overwhelming, conclusive evidence that it is true: A small percentage of the population will steal, simply if given the opportunity. They won’t even need the stuff. They may not even want…
One of Europe’s Oldest and Most Secretive Families Has Been Using Its Private Holding Company To Buy Up The World’s Coffee Assets
I’ve watched in fascination over the past couple of years as German conglomerate Joh. A Benckiser has been quietly buying up the world’s leading coffee brands, acquiring Caribou Coffee for $340 million, Peet’s Coffee & Tea for $974 million, and my personal obsession, Douwe Egberts for $9.8 billion, among others. The firm is the personal holding company of…
Jurassic Park and Mental Models
Over the past 24 hours, I needed to run some fairly intensive server processes for a business that I still oversee myself as it’s mostly automated. I managed to make it so efficient that I turned 21.18 gigabytes of data into 176.9 megabytes of data; a reduction of 99.17%. I still have quite a bit…