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

Railroad Stocks - Historical Analysis

Union Pacific: A Company That Looked Expensive But Was Undervalued

The developments on the income statement and balance sheet of Union Pacific between 2005 and 2013 are an excellent example of why it is important for you to analyze data yourself, and come to conclusions based on reasonable, rational, intelligently organized facts.  The willingness to take action when others do not agree with you, and to have your action backed up by solid evidence, can make the difference between being comfortable and ending up rich.  Two of the world’s wealthiest titans demonstrated this truth, not only when buying shares of Union Pacific, but other railroads, as well.

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Morningstar Updates It Berkshire Hathaway Class B Intrinsic Value Estimate

Morningstar Is Getting Closer On Its Intrinsic Value Figure for Berkshire Hathaway

It’s been 1-2 years since we talked about the intrinsic value of Berkshire Hathaway.  The last time I publicly commented in any meaningful way was to say that I thought Morningstar was wrong in its model.  This put me in the interesting position that rarely happens: I thought intrinsic value was higher than the analysts who were publicly writing about it.  Normally, I’m the one exclaiming that the estimates and variables used were too rosy.

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Why Are People Surprised That Savings Bonds Beat Stocks Over the Past 12+ Years?

I’ve noticed an array of articles exclaiming that savings bonds, including both the Series EE savings bonds and the Series I savings bonds, beat stocks over the past ten or fifteen years.  Nearly every time I make my way into one of these essays or news stories, I just shake my head because the surprise displayed by the men and women penning these pieces indicate a complete lack of competence.  Those of you who have any experience managing money or with history immediately know my objective: No asset class, per se, is sacrosanct.  What matters is the price you pay for the asset relative to how much underlying cash it generates.

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Focus on Total Return When Managing Your Portfolio

Focus on Total Return to Manage Your Investments Better

In finance, there is a concept known as total return.  The goal of total return is simple: To tell you what the overall results were to you, the owner, during a time period you held an asset.  This includes any fluctuations in the liquidation value of the asset itself, profits produced by the asset and distributed to you as dividends, spin-offs from activity split off from the asset, etc.

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Papa Johns Franchise

Peyton Manning Borrows the Jamal Mashburn and Ulysses Bridgeman, Jr Investing Playbook By Investing in Papa Johns Franchises

Feel good story for the day: Peyton Manning, the 36 year old legendary quarterback, bought 21 Papa John franchises in the Denver area a couple of weeks ago, according to Bloomberg.  It looks like he is borrowing from the Jamal Mashburn and Ulysses Bridgeman, Jr. playbook.  Those two former sports stars took their paychecks and, as…

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