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

Coca-Cola Pepsi and Dr Pepper Have 88 Percent Combined Market Share

You Can Get Rich With Just One or Two Big Ideas In Your Lifetime

I often get messages from some of you expressing a desire to invest but not wanting to sign up for a life buried in balance sheets or income statements.  The good news: In investing, you can do extremely well if you have a few good, big ideas in your lifetime.  You don’t have to become a master of everything.  You just need to understand what you are doing, focus on it with the persistence of a pit bull, and be patient during the periods when there is nothing attractive to do, content to sit on cash.  There is no need to master every industry, or spend your evenings pouring over the disclosure documents of a pharmaceutical giant to make money.  It isn’t necessary.

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How to Remain Detached from the Stock Market and Treat Your Investments Like Private Businesses Header

How to Remain Detached from the Stock Market and Treat Your Investments Like Private Businesses

How to Remain Detached from the Stock Market and Treat Your Investments Like Private Businesses When I was much younger, I kept seeing Benjamin Graham’s famous allegory called Mr. Market mentioned by great economists, investors, and financial historians.  I bought a copy of The Intelligent Investor to figure out why everyone was so enthralled with a book…

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General Electric Stock from the 1940s

Stocks vs Bonds vs Gold Returns for the Past 200 Years

I write a lot about investing in stock and investing in bonds over at Investing for Beginners at About.com, a division of The New York Times. There is a reason I tend to be far more favorable to equity investments (stocks) than fixed income investments (bonds) when it comes to long-term investing and why much…

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A Technique for Comparing the Intrinsic Value of Two Stocks

A Technique for Comparing the Intrinsic Valuation of Two Stocks

One technique I find helps a lot of investors act more rationally is one I developed during my late teenage years.  I would convert all companies I was analyzing to $100 per share to make comparison of the figures and yields easier.  In essence, this allowed me to ask the question, “How much profit am I buying for every $100 I put into this company?”  If I paid a high multiple for a particular business, it forced me to justify the higher valuation by writing down my reasons for my belief.

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How to Measure Your Wealth

Years ago, I vaguely remember hearing someone comment that it was interesting how differently we measure wealth today compared to British society at the end of the 19th century.  This made me realize that most people don’t even know there is a difference; that there are primarily two ways you can think about measuring your wealth and which you choose for your own household will influence how you behave, the capital structure you employ, and even how you think about risk.

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