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

Mail Bag Question for Joshua Kennon Header

Mail Bag: Applying Value Investing to 3rd World Countries

I hesitate, strongly, about publishing this response.  I’m not sure it is good for me to advocate what I would do in this situation as it might discourage people by making circumstances seem hopeless when hope is what is needed; it might even exacerbate the macroeconomic problem while solving the individual household challenge.  Still, it’s the only honest answer I can give because this is what an analysis of the situation leads me to conclude.

Read more
Melted chocolate background

I Can’t Seem to Stop Myself from Buying Nestlé

I spent the past few days updating some of my own internal case studies, spreadsheets, and other documents, as well as wrapping up a few things that needed to be crossed off the agenda for the private businesses.  I ended up putting together a collection of visual references covering some of the long-term holdings I keep for my household, among them Nestlé SA following my post on Monday.

Read more
Dr Pepper Snapple Investment

An Example of Real World Value Investing Through the Lens of Dr. Pepper Snapple Group

One of the biggest dangers an investor faces when he or she decides to buy individual stocks for a portfolio is the temptation to chase something “exciting”, regardless of valuation.  That’s a foolish undertaking.  Valuation matters a great deal.  The exact same business might be a wonderful investment at 10 times earnings but a horrible investment at 50 times earnings.  It’s not enough for profits to rise, or dividends to expand; they have to offer a good return, based on what you paid, relative to a reasonable opportunity cost hurdle such as the long-term 30-year Treasury bond yield.

Read more

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