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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Vanguard Tax Fraud Allegations Case

Vanguard Accused of Dodging Nearly $35 Billion in Taxes – Expense Ratios May Need to Quadruple According to Expert Report Submitted to IRS

From August 2008 to June 2013, David Danon was an associate attorney in the tax department at the Vanguard Group. According to a whistleblower lawsuit filed with the State of New York, which served as the basis for additional whistleblower actions filed with the State of Texas, the State of California, the Securities and Exchange Commission and the Internal Revenue Service, Danon was silenced, and ultimately sent packing, after he persistently warned management that Vanguard was committing massive tax abuse by using a combination of legal entities and improper pricing structure; an arrangement that went back 40 years. Danon claims that others who had raised similar concerns had also left the firm after facing a backlash for refusing to toe the line on what they believed was illegal behavior.

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