More than 200 years of research shows that owning stocks, which represent an ownership stake in a business, is the best way to generate long-term wealth. Our stock investing guides will explain how common stocks work, what preferred stocks are, how to understand dividends, stock basics for new investors, and advanced stock trading techniques for those who are ready to learn the deep knowledge of finance.

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

Disney Buys Lucasfilms Darth Vader and Mickey Mouse

The Walt Disney Company Adds Lucasfilm To Its Stable of Investments for $4.5 Billion

As you probably know by now, The Walt Disney Company has acquired Lucasfilm Ltd. in a $4.5 billion deal.  The studio owns franchises such as Star Wars and Indiana Jones.  Half will be paid in cash and the other half will be paid in newly minted shares of the company, diluting the existing owners.  However, the terms are so favorable that, frankly, it looks like George Lucas took a much lower price than he could have gotten elsewhere solely to have Disney protect the brand, given the latter’s reputation and massive resources.  Not even including the cash that Lucasfilm itself produces, Disney could pay for the acquisition in less than 6.7 months using the money generated by its vast empire.

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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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Starbucks IPO

A 20-Year Case Study of an Investment in the Starbucks IPO

I’ve done case studies in the past of slower growing, highly profitable businesses such as Clorox, Nestlé, Coca-Cola, Procter & Gamble, and Colgate-Palmolive among them.  We’ve also discussed case studies of some initial public offerings, such as an investment in Tiffany & Company twenty-five years ago.  I thought it might be interesting to look at another…

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Nestle Headquarters Stock Investors from Google Earth

A Case Study of Nestlé SA Shareholder Returns With and Without Dividends Reinvested

Personally, my household owns shares of Nestlé SA, the Swiss-based chocolate, water, coffee, condensed milk, packaged food, and nutrition giant.  I’ve never been able to get as much of it as I want due to valuation1, but whenever the stock is within striking distance of my conservatively estimated calculation of intrinsic value, I write a…

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Clorox Bleach

A History of The Clorox Company and a Case Study of the 26-Year Investment Record

One of the additions I have been considering adding to the KRIP is The Clorox Company.  However, it appears somewhat overvalued right now, offering a lower earnings yield and slower sales growth compared to the S&P 500 if you view the index itself as a single stock, which doesn’t bode well on a relative basis.  That…

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Coca-Cola Stock with Dividends Reinvested Over Past 50 Years

Reinvesting Dividends vs. Not Reinvesting Dividends: A 50-Year Case Study of Coca-Cola Stock

Last week, I posted on a 50-year investment history of shares of The Coca-Cola Company.  As I was publishing this month’s About.com content, I began writing a piece that I called The Dividend Dilemma that focused on whether you should reinvest your dividends or not.  Around the same time, one of the readers, Matt Nix,…

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Change the Way You Think About Business Ownership and You Can Change Your Life - Header

Change the Way You Think About Business Ownership and You Can Change Your Life

Shortly after World War I, Raymond Poincaré, the Prime Minister of France, decided against partnering with Royal Dutch Shell to fund the energy needs of the French people.  One of his military commanders, Colonel Ernest Mercier, worked with 90 banks and businesses to establish a new oil company called French Petroleum Company (er, technically, Française des Pétroles Compagnie since they weren’t speaking English).  The name might sound prosaic but keep in mind this was the era of “General Electric” and “Standard Oil”.  The new undertaking began operations on March 28th, 1924. Today, that business is known as Total, S.A. and it is one of the six supermajor oil powers on the planet.

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