Finding Long-Term Outperformance (October 2019 Edition)

There is a new update out on Patreon where I profile a somewhat well-known company that is engaging in unusually conservative accounting practices such that the P/E ratio looks higher than would be the case if it reported earnings in the same manner as its industry peers. This firm has delivered 13% annual returns since 1979, and it appears primed for similar performance over the next 10+ years as well.

As always, you can join me on Patreon by clicking here.

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Johnson & Johnson Stock’s Bright Five-Year Outlook

For investors, it is important to understand the net effects of the Tax Cut and Jobs Act of 2017 that cut the corporate tax rate from 35% to 21%. It would be easy to assume that the tax cut means that each share of a company in which you invest is now earning an extra fourteen percentage points in profit compared to what it did on the same revenue stream back in 2016. 

The (possibly) unanticipated consequence for the investor to monitor is the extent to which the gains from the tax cuts are competed away versus accretive to shareholders–i.e. to what extent do the benefits of the tax cut go to the … Read the rest of this article!

Trusts, Wills, And Gifts Created On The Verge Of Death

You know how Charlie Munger talks about having a “too hard” pile into which he puts the moral and legal dilemmas that he cannot properly solve because the values that you have to prioritize over the other is too difficult to judge? “Too hard” is where I keep finding myself returning when I try to think about how the law should be *ideally* when it comes to gifts and will changes that someone makes on the brink of death.

This topic caught my attention when I was reading a June piece in The New York Times titled “When A Will Divides An Estate, And Also Divides A Family”. The narrative is … Read the rest of this article!