Investing is the process of putting aside money today in exchange for more money in the future. This process involves risk but, when well managed, can help grow your wealth over time due to the power of compounding. This is the investing archive that includes articles published on JoshuaKennon.com. If you are looking for more great content, visit Joshua’s Investing for Beginners site at About.com, a division of The New York Times.

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

Joshua and Aaron Colgate-Palmolive Toothpaste

Colgate-Palmolive: A Real World Examination of the Limitations of the P/E Ratio

Back in 2011, I did a 20-year case study of Colgate-Palmolive. Global events have conspired in such a way that it can now serve as a perfect illustration of a valuation conundrum: While not cheap, Colgate-Palmolive is significantly cheaper for a long-term owner than the price-to-earnings ratio alone would have you believe. In fact, despite having what appears to be a 26.54 p/e ratio, it’s slightly undervalued to its private market value could you get your hands on the entire empire. It’s a rare thing to be able to talk about a gem like this under conditions such as these so I’m not going to let the opportunity pass. Dust off your powdered wigs, take out your walking cane, and travel back with me to post-Revolutionary America.

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Joshua Kennon Berkshire Hathaway Annual Report 2014

Thoughts on Berkshire Hathaway’s Intrinsic Value – 2015 Edition

Surveying the most recent ten year period, the increase in Berkshire Hathaway’s economic engine has been breathtaking.  The Great Recession of 2008-2009 gave it the opportunity to lay out billions upon billions of dollars in cash it had been storing for years prior at terms that were unlike any deals we’ve seen in decades.  Convertible preferred stocks, warrants, private buyouts … the firm got its on hands highly lucrative securities, many of which were privately negotiated and offered return enhancers not available to average investors …

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Nestle Dividend Day 2015 Nescafe

We Are Approaching the Nestlé ADR Dividend Date!

Now that the dividend has been paid on the Swiss shares (April 22nd), the stockholder meeting concluded (April 16th), and Citibank is working with the Swiss Tax Authorities to distribute all of those beautiful Swiss Francs shipped over from Vevey to the United States for holders of the ADR to receive their U.S. dollar equivalent payouts later this month on May 29th when the process has completed (can you believe it’s already been a year since the last time we had this conversation?), I wanted to write about Nestlé.

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Free Pancakes at IHOP Day

You Can Get Free Pancakes If You Go to IHOP Today!

March 3rd, 2015, is the 10th anniversary of National Pancake Day.  If you head to an IHOP, you can get free pancakes.  They ask, but you are not required, to make a donation to charity in lieu of paying for your meal, with the goal being to raise $3,500,000 this year for Children’s Miracle Network Hospitals.
You might want to consider bringing your own maple syrup, though.  As you know, one of the few things in life that irritates me to no end is the (what I consider) stupidity of the pancake industry, which has now, in 2015, nearly completely replaced every single store brand maple syrup with “pancake” syrup instead, which is really dyed corn syrup.

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