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.

Walter Schloss Wikipedia Image Fair Use

Walter Schloss Value Investing Strategy

Walter Schloss, a legendary value investor who learned directly from Benjamin Graham, the father of value investing, never graduated from college and was hired as a runner on Wall Street in 1934, at the age of 18. Schloss enrolled in the New York Stock Exchange Institute, where he took courses from Benjamin Graham on how to value businesses, find value stocks, and manage money. Using the lessons he learned there, Schloss launched his own value investing fund in 1955, with a starting balance of $100,000, eventually growing to manage money for as many as 92 investors. For more than 50 years, he earned a 15.3% compounded annual rate of return, turning a $10,000 initial investment into $12,344,268, far outstripping the 10% return offered by the S&P 500 during the same period, which would have resulted in only $1,173,909.

Benjamin Graham Value Investing Strategy

Benjamin Graham Value Investing Strategy

In addition to penning several of the most important value investing books in history, Benjamin Graham, the father of value investing, was one of the two partners in the Graham Newman Corporation, the investment fund through which he put money to work. It was at this firm that Warren Buffett worked early in his career, learning from the master. As he amassed an astounding investing record, Graham divided his portfolio into several categories, or “operations”. These served value investing students well for more than seventy years and some still have value today.

Horseshoe Political Theory Explanation

Horseshoe Political Theory

Those who talk about “the left” or “right right” when it comes to politics or political theory are often missing a very important point. The best illustration comes from horseshoe political theory, which states that opposing sides of an issue are more like the ends of a horseshoe. In other words, their belief in the right to force their will on the populace is just as strong with the only difference being the specific beliefs they are espousing. Instead of being complete opposites on a spectrum, they sit side by side.

Optimism Bias Cognitive Bias

Optimism Bias

Optimism bias, sometimes referred to as unrealistic bias or comparative optimism, is a particularly powerful mental model because it causes a person to believe he or she is less likely to experience a negative event than members of the general population with statistically identical risk factors.