21% Investment Returns Since 1978

I wasn’t planning on a mid-week post, but the nature of investment research as that investment ideas don’t come along in regular, carefully regimented intervals. Perhaps that should be an obvious source of investment research, but I pay close attention to businesses that have multi-decade periods of compounding at a rate of 15% or more annualized. If that type of compounding is maintained for a period of twenty years or longer, there’s a fair chance that some type of competitive advantage is at work and being manifested for the benefit of shareholders.

There is one company, which I have studied on and off, that has delivered returns of over 21% since its IPO in January 1978. Right now, I think there is a strong argument that it is trading at a fair (thought not heavily discounted) price, and that its economic engine that propelled its historical returns remains as much … Read the rest of this article!

Trust Funds, Large Wealth, And Entitled Children

A couple days ago, I posted an article about how someone inheriting meaningful wealth should not feel guilty about receiving it because it reflected the will of the folks that created the wealth. Furthermore, money is itself a neutral thing–a tool if you will. Money can be used to accomplish great societal things and make personal dreams come true, but it can also be wielded tyrannically to exercise power over others and serve selfish desires at the expense of society. All it does is amplify the virtue and vices of those who possess it.

In that spirit, I wanted to discuss a topic that is very important to those who have accumulated much more in life than they could ever spend. And that is the question of what to do with the money when they die. Although there’s a limitless number of things that you can do with your wealth, … Read the rest of this article!