Spoiled Rotten Investors

Middle-aged Midwestern farmers did their part during WWI by dropping significant chunks of their food off with local U.S. government food officials that transported the food to the Allied Cause in exchange for Liberty bonds. A liberty bond was exactly what you think it is–a low-interest bond that was created by the United States government to facilitate borrowing to fund the war effort.

It was heavily marketed as a patriotic duty, with movie stars like Douglas Fairbanks and Mary Pickford rallying the public to delay gratification and accept as any bonds in lieu of cash as was possible to survive, and Liberty bond posters decked the local churches and government halls.

Continue Reading!

Someone Out There Bought Royal Dutch Shell At $37

I have made no secret of the fact that I am a big fan of the U.K.-Netherlands energy giant Royal Dutch Shell (RDS.B). The company was the subject of my first blog post ever at The Conservative Income Investor, and I came to like it even more after reading parts of the four-volume set “The History of Royal Dutch Shell.” Since 1911, the returns have been over 14% annualized, with about two thirds of the total returns come from collecting dividends and reinvesting them.

During the 1957 through 2006 period, Royal Dutch Shell delivered 12.5% annual returns (suggesting that the law of large numbers only had the effect of diminishing Royal Dutch Shell’s long-term returns by a percentage point and a half as it transitioned from large-cap to mega-cap status).

Continue Reading!