Excluding or Limiting A Child’s Inheritance in a Will

Since literally biblical times, the possibility that a parent would favor one child over the other has been a cause for resentment for the less loved children. Consider this passage from the Book of Genesis Chapter 37, verses 3 through 5:

“Now Israel loved Joseph more than any of his other sons, because he had been born to him in his old age; and he made an ornate robe for him. When his brothers saw that their father loved him more than nay of them, they hated him and could not speak a kind word to him. Joseph had a dream, and when he told it to his brothers, they hated him all the more. He said to them, ‘Listen to this dream I had: We were binding sheaves of grain out in the field when suddenly my sheaf rose and stood upright, while your sheaves gathered around mine and bowed down to it.”

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The Risk of A Value Investing Strategy During A Financial Crisis

If you are a long-term investor, it usually provides opportunity than hardship when an investment you own is undervalued—i.e. selling for less than it is properly worth. If a business is worth $70 per share and yet it trades for $50 per share, there are two levels that can be pulled on behalf of shareholders to create value.

First, the management team could repurchase some of the company’s stock, which assuming the estimates of the business’ value are accurate, results in the creation of a 28% return as long as that status quo differential persists. And secondly, the management team can declare a dividend, which the shareholder can then choose to reinvest into more ownership shares that are trading at the projected 28% discount. This type of perpetual undervaluation is a not insignificant portion of the long-term wealth that owners in the old Abbott Labs, Philip Morris, and Standard Oil were able to receive over the decades.

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The Dixie Brewing Company’s Single Tulane Facility

In 1907, Valentine Merz founded the Dixie Brewing Company in New Orleans. Merz permitted a few dozen—which soon grew to a few hundred—investors to join in his original enterprise. After getting through Prohibition by selling “Dixie near beers”, Dixie began an aggressive post-WWII marketing campaign in which it described itself as New Orleans’ friendly, slow-brewed made in New Orleans’ beer. This advertising campaign gave Dixie Beer (the signature brand) a peak market share of 32.1% of the New Orleans market in 1962.

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Why Waking Up Early Leads to More Productivity

Most of us are aware of Benjamin Franklin’s famous saying that early to bed and rise is the condition precedent to both health and wealth. What is less an element of the public consciousness is Franklin’s passage from “A Way to Wealth” that precedes it:

“But if you do love life, then do not squander time, for that’s the stuff life is made of, as Poor Richard says….If time be of all things the most precious, wasting time must be, as Poor Richard says, the greatest prodigality, since, as he elsewhere tells us, lost time is never found again, and what we call time-enough, always proves little enough: let us then be up and be doing, and doing to the purpose; so by diligence shall we do more with less perplexity. Sloth makes all things difficult, but industry all easy, as Poor Richard says; and he that riseth late, must trot all day, and shall scarce overtake his business at night. And early to bed, and early to rise, makes a man healthy, wealthy, and wise.” (emphasis added).

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How To Improve Your Work Ethic

Samuel Johnson once said that courage is the most necessary of virtues, as without courage, it would be impossible to exercise any of the other virtues. In terms of leading a life of accomplishment, having a strong work ethic is the most necessary of prerequisites, as without a strong work ethic, it would be impossible to realize any ambition that involves production.

The difficult fact is that a work ethic does not automatically compound. With investing, there is a passive element to it. If you own 100 shares of Coca-Cola, you can do absolutely nothing, and as long as those shares remain in the name of yourself or something you own, you’re going to receive that $156 in dividend income without any further action required on your part.

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