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

New Jersey Bans Tesla to Protect Car Dealer Monopolies

Tesla Motors, the Silicon Valley-based electronic car company that has revolutionized energy efficient vehicles and become a cult icon, operates its business like Apple.  It designs amazing products, then sells them direct-to-consumers through specialty branded stores, staffed with knowledgeable sales associates.  By cutting out the middleman, Tesla can pass more savings on to the consumer,…

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Don’t Give In To the Siren Call of Leverage

So much misfortune in life can be sidestepped if you simply make it a rule to never stretch your finances, yet it’s a rule I see violated more than any other both through observation of those around me and through the messages I receive.  Someone can afford a $150,000 house but they try to buy a $250,000 house.  Another can realistically go to a college that will cause them to graduate with $10,000 in debt but they want to sign up for the program that will put them $40,000 in debt.  Then, not only do they have to hustle to try and meet their legally promised payments, they have to pay rent (in the form of interest expense) on the savings they’ve temporarily borrowed from someone else through an intermediary such as a bank.

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Final Fantasy XIII Lightning Returns Is Plato’s Euthyphro Dilemma In Drag

Having reached the end of the road in the third installment of the Final Fantasy XIII trilogy, requiring 150+ hours of game play over a four year period to climb the highest levels of power in creation and culminate in a conclusion to the series, I’m struck how the entire thing is really a well-done repackaging of Plato’s Euthyphro dilemma. In case it’s been awhile since you delved into the classics, the philosopher’s famous question posed in Greece more than 2,300 years ago can be summed up as (made singular since a majority of world religions are now monotheistic): Is something “good” because God says it is good, making it dependent upon His will or does God say something is “good” because it is inherently “right”, making goodness independent of His will?

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Warren Buffett Hints That Berkshire Hathaway Shares Are Cheap In Stockholder Letter

I’m taking it as a given that practically everyone who reads this site has already gone through Warren Buffett’s stockholder letter, which Berkshire Hathaway released today. Personally, I love how, for only the third or fourth time in his career, Buffett essentially provides enough mathematical evidence to say to people, “You’re a moron for not buying Berkshire Hathaway at these prices, but I’ll never come right out and say it.”  He did it in sort of a clever way, too, to encourage people to run the figures.

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A Century Later, Ben Graham Still Seems Like a Prophet

The Wall Street Journal had a recent story detailing the trend of small investors jumping back into stocks, some trading options and futures.  I’m old enough now, combined with twin quirks of being interested in finance at such a young age and having my lifespan line up with some interesting times in the capital markets, that I’ve watched this play out three times.  At this point, you’d think it would lose its novelty but I still find my mouth dropping open and my head shaking in disbelief, mixed in with a bit of sadness.  Reading what people are doing with their hard earned money – money that they exchanged for part of their life by selling time that could have been used traveling, reading, painting, or hanging out on the beach – doesn’t compute.  If you took $5 out of their wallet, they’d throw a fit, but they’ll gamble $5,000 on something they barely understand.

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Arizona Passes One of the First Segregation Laws In 50+ Years

It’s like people never learned anything from the Oklahoma Satanist case last year.  Unintended consequences matter.  Yet, it seems like people don’t build them into their behavioral models.  If you open that door, you’re not the only one that gets to walk through.  It’s so simple.  It’s so basic, yet people forget it time and…

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