Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory

How a Family Holding Company Can Be Used to Transfer Wealth and Bind a Family's Economic Future Together - Header

How a Family Holding Company Can Be Used to Transfer Wealth and Bind a Family’s Economic Future Together

We’ve talked about how a holding company works in the past, provided a beginner’s explanation of holding companies, and even looked at two high profile private holding companies owned by America’s richest families, Walton Enterprises, LLC and Cascade Investment, LLC.  I even gave a very basic explanation over at About.com as to how family members can invest together through a limited liability company. Tonight, I thought I’d go over a very basic, very simplified explanation of a much more advanced concept that isn’t appropriate for most people but will show how a family holding company can be used to gift millions of dollars tax-free to heirs and others, while retaining control of assets and binding a group together economically.  This is a high-level, conceptual explanation.  Do not act on any of this without consulting with your own tax attorney, tax accountant, and other qualified advisers.  None of this is investment advice.  None of this is tax advice.  None of this is legal advice.

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The Kennon-Green Family Method for Managing Life and Business

The Kennon-Green Family Method for Managing Life and Business: How We Arrange, Evaluate, and Oversee Our Home and Companies

I wanted to give you some insight into the approach and strategies Aaron and I use to get what we want in life; to build our home and businesses into a cohesive system that works to reinforce each other and bring us happiness and financial freedom, which includes freedom over our time.

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Morningstar Berkshire Hathaway Valuation Commentary

Morningstar Says Berkshire Hathaway’s Intrinsic Value Is $89 Per Class B Share. I Think They’re Wrong.

I’ve told you in the past that Berkshire Hathaway appears to be trading at the lowest valuation in nearly a decade.  Recently, Morningstar revised its intrinsic value estimate for the Berkshire Hathaway Class B shares, stating they believe the stock has an intrinsic value of $89 per share (equal to $133,500 per Class A share since it takes 1,500 Class B shares to equal a single Class A share). I find this interesting for several reasons.  First, Morningstar’s intrinsic value calculations are often reasonable, in my opinion.  On more than one occasion, we’ve been within a single percentage point after I had valued a firm and then cross checked third-party estimates as part of the process to see if there were major disagreements.  But in this case, I just think they’re wrong.

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Wendy's Hot 'n Juicy Dave Cheeseburger

Wendy’s Brilliantly Relies on Mental Models from Psychology to Reinvent the Classic Wendy’s Cheeseburger

Wendy’s recent commercial introducing the remade cheeseburger named after founder Dave Thomas is one of the best examples of marketing and psychology I’ve ever seen.  It’s brilliant; mental models applied in a constructive way.   I’m not going to take the fun out of it, but be on the lookout for some of the clues…

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Jamal Mashburn Owns Papa John's and Outback Steakhouses

Why Aren’t More Athletes Like Jamal Mashburn or Ulysses Bridgeman, Jr.?

The Internet is buzzing with a clip from Terrell Owens’ reality show on VH1.  In a recent installment of the program, T.O. begins to cry about the money troubles he faces after discovering that his finances aren’t adding up, his credit score is in the 500’s, he has mortgages due on real estate and he…

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Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory