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.

What Man Has Done, Man May Do

What Man Has Done, Man May Do

What man has done, man may do. – Proverb On May 6th, 1954, at Oxford University’s Iffley Road Track, Roger Bannister became the first recorded man in history to run a mile – exactly 5,280 feet – in less than 4 minutes.  His time, 3:59:04, was thought unachievable.  Men had tried countless times and failed.…

German Mark Inflation

The Money Illusion – Why Thinking About Things In Nominal Currency Can Destroy Your Net Worth

In 1928, Irving Fisher published The Money Illusion (seriously, buy it – it’s only $7.95), which discussed the human fallacy of thinking about things in the nominal currency of your home country instead of in terms of purchasing power.  The concept phrase “money illusion” was coined by legendary investor and economist John Maynard Keynes. The…

Graham Newman Corporation Stockholders

The Compensation System for Benjamin Graham at the Graham-Newman Corporation

The Graham-Newman Corporation was a stock company that essentially served as a hedge fund through which legendary investor Benjamin Graham managed money for his shareholders.  It is the same firm where Warren Buffett worked in his twenties before moving back to Omaha and establishing the original seven partnerships upon which his fortune is based. According…

Mental Model by Joshua Kennon

Mental Model: The Illusion of Choice

Mental Model: The Illusion of Choice I found myself in a situation today that illustrated the powerful concept of a specific mental model known as the illusion of choice.  This theme, of course, is familiar to anyone who has watched The Matrix trilogy, from the scene wherein the architect explains that the key to keeping…

Walter Schloss Partnership

Lessons from the Career of Walter Schloss and the Walter Schloss Partnership – Even If You Aren’t an Investor

I’ve written about Walter Schloss and his value investing philosophy in the past.  Tonight, I’m thinking about the lessons someone can glean from studying his career. [mainbodyad]Alice Schroeder tells us on page 852, in the notes of The Snowball, that in 1951, Walter Schloss was making less than the average secretary working for Benjamin Graham…