Why Are American Schools Failing?

Lately, I have been reading the works of Charles Murray, an author of social commentaries who is not at all popular with those on the left side of the political spectrum. Mostly, I’ve wanted to determine whether his unpopularity is due to the fact that he is right, or whether the criticism that he uses data to fit into his preconceived conclusions is a fair criticism of his work.

One area where I do think his work is right on the money is when he talks about why American public schools have declined. If I had to paraphrase his work into a sentence, it would be this: American public schools are generally on the decline because individual communities no longer consist of a wide range of students from significantly varying economic backgrounds, and to the extent that you still do have areas where kids of the affluent and relatively poor Read the rest of this article!

Procter and Gamble Stock: The Next Twenty Years

The best unexpected perk of regularly writing about stock investments as a blogging hobby is that some incredibly talented, hard-working, and driven audience that is dead serious about personal improvement in their own lives. Over time, it has kind of become a responsibility because there are some readers who are sitting on some very real financial capital and are going through the education process of figuring out how to get the best outcome for what they have. Among these readers is a group of Procter and Gamble retirees that are sitting on large chunks of P&G stock that has compounded at a fairly nice clip throughout their working careers.

When I invest, the most important consideration is that I want to avoid the possibility of what Charlie Munger has called “going back to go” using an analogy from the Monopoly. By choosing to invest rather than consume, I am impliedly … Read the rest of this article!

Average Americans’ Net Worth and Interest Rates – 2019 Edition

Right now, the average wealth per adult in the United States is $403,974 and the median wealth per adult in the United States is $61,667 according to Credit Suisse’s Global Wealth Report. What I find most interesting is that $327,000 of the $403,974 total wealth, or approximately 81%, is in the form of what we call “financial wealth” or an asset that is capitalized.

In other words, this figure includes the capitalized value of small businesses across America. If you run a small paint company that earns $75,000 per year, and you could sell that business for $150,000, and you have $200,000 spread out in cash, stocks, and bonds, your net worth in the eyes of the United States government is $350,000 because the business you own is calculated based on its sale price rather than the owner earnings that it generates for your household.

It is a perfectly logical … Read the rest of this article!