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

Organizing Refrigerator

Our Personal Project for 2016 – Addition Through Subtraction

Our Personal Project for 2016 – Addition Through Subtraction A few years ago, one of our projects involved focusing our pantry on the bare essentials; raw ingredients that could be used to make almost any recipe imaginable.  At the time, I posted pictures of the early stages, which included different types of flour (bread flour,…

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Tiffany and Company Investment Kennon-Green

Tiffany & Company Valuation – Five Years Later

Almost five years ago, Tiffany & Company was glittering at time when much of the corporate world was still mired in misery from devastating losses and the implosion of Wall Street. Based on the annual report for the prior year, 2010, worldwide net sales had risen by 12% on a constant-exchange-rate basis, reaching $3,085,290,000. After-tax profits were up 39% from the year before, 2009, when the developed world had gone through the worst meltdown since the Great Depression, coming in at $368,403,000.

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Portfolio Weightings and Construction

Pay Attention to the Weightings of Your Individual Holdings When Constructing a Portfolio

One of the things that worries me from a risk management perspective is investors who don’t know what they own or their actual, real portfolio weightings. Sometimes, I’ll hear new investors say, “I own stocks” or “I own mutual funds” but neither is an answer. Those aren’t the relevant details. The real question: “In which enterprises, on what terms, and at what price has the money been invested, laid out, and exchanged?”. Much of everything else is a smokescreen serving to obfuscate reality. It’s risk-adjusted reward we’re after; reward measured in after-tax, net-of-inflation real purchasing power.

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