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…
I’ve been thinking a lot lately about Buffett Associates, Ltd., which is the most famous and first “real” professional investment partnership that Warren Buffett established on May 1st, 1956 after he returned to Omaha following his time working for Benjamin Graham at the Graham-Newman Corporation. He was 25 at the time (would turn 26 that…
I’ve been writing quite a bit about dividends and dividend investing over at Investing for Beginners at About.com. One of the things I wanted to explain, but I feel is still advanced for that particular readership base, is something known as the dividend discount model, or rather a back-of-the-envelope adaptation of it. (Please note that…
I’ve written a lot about the economics of household income over at Investing for Beginners at About.com, a division of The New York Times. [mainbodyad]Most economic data, as I explained there, comes in the form of regular households that are easily understandable to the average worker. For example, to be in the top 5% of household…
A few days ago, I was reading a psychology study that discussed the difference between the physical brains of men and women and the real-world implications of these differences. [mainbodyad]The best way to summate the data was the example of the assassination of President John F. Kennedy. As he was shot, the typical response of…
I’m going to just say it, Diana Damrau, both in terms of voice and acting portrayal, is the single best Queen of the Night in history. I don’t care what anyone else says. Her “Der Hölle Rache” is flawless. I mean, absolutely, cannot-be-improved-upon-in-your-face perfect. It starts at 2:09 into the video if you want to…
John S. Lemon, President of Tootle-Lemon National Bank in St. Joseph, Missouri (the city near the farm town where I grew up before moving to the East Coast at the end of my teenage years), died on March 17th, 1905. According to Volume LXX January to June 1905 of The Bankers’ Magazine: “He was born…
I’ve been talking a lot about trust funds lately. I calculated that if someone put $50,000 in a trust fund today, 70 years from now, they could have a dynasty trust paying each of their heirs a $25,000 cash check (in today’s dollars, net of taxes) at Christmas. There are a lot of assumptions that may not pan out in that figure, but it’s a decent guess.
Trust funds are terribly misunderstood. They are one of the most flexible planning tools to nurture, create, and pass on wealth ever known to man. They can be as rigid or as flexible as you desire. Even more importantly, you don’t have to be rich to use trust funds. These structures are not relegated to the realm of the Rockefeller and Walton families.
You all know that Peter Lynch was the first investor that made the stock market make sense to me during childhood. He is one of the greatest investors of all time, having compounded the mutual fund he ran for 13 years at 20%+ annually, generating an absolute return of more than 1,000% for his…