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.
One of the ways I manage my life is to sit in a room several times a year, staring off into the distance, and trying to imagine 5, 10, 15, 20, 30+ years in the future. I ask myself what things I wish I had done when I was younger, what things I would have wanted to avoid, what risks I would have wanted to take, and what experiences I would have wanted to have. A topic that has come up several times during these exercises is the concept of energy assets. A portfolio of energy assets is fundamentally different in nature than almost any other security, business, or holding.
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…
Margaret Thatcher has died. She was one of the most influential figures of the past century, and one of the most powerful women in history.
Earlier this week, my grandma came down for chicken tikka masala. Tonight, it was take two, only this time, the chile seeds were partially retained in the sauce to increase the spiciness to the point it burned, but was enjoyable. It was delicious. This is definitely a permanent recipe we’ll be making several times a year.…
The biggest mistakes are often not seizing the huge opportunities that are right in front of you. One of my least favorite stories of this economic tragedy involve a man named Ed Toman, who lived in Southern California back in the 1940s and 1950s and played an important role in the early days of the McDonald’s restaurant empire.
All morning long, I’ve been getting letters in the inbox about my “latest” article at Investing for Beginners. I have no idea what they are talking about because the article in question, which isn’t even an article, it is a “quick tip” template that was meant as a side bar to another piece, was published years ago and has not been featured anywhere on either of sites.
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…
My family gets paid to drink milk because we take advantage of a dairy rebate program.
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.
One of the most important lessons I learned very early in life came from a series of psychology studies that I read for entertainment. It talked about how the big troubles we face – the death of a loved one, the loss of a job, the foreclosure of a home – are often overcome because our natural defense systems activate, causing our behavior to moderate with time so that we accept what has happened, rebuild, and put it behind us. The things that cause unhappiness that is both severe and chronic are not these major shocks; they are the small irritations that build up and wear away at you like Chinese water torture.