Crayola’s Dominance Of The Art Supply Market

An underrated parenting technique is to have your child make a self-deprecating joke in response to light teasing. Nothing triggers the impulse to make fun of someone quite like discovering that the person is unable to take a joke. The hope is that, when the child is grown, he will become someone capable of taking his work seriously, but not necessarily himself seriously.

What happens if self serious carries the day over self deprecation? You get Anish Kapoor, the British artist and sculptor who is best known for creating the Bean sculpture in Chicago’s Millennium Park. Kapoor doesn’t like it when you call it the Bean, instead preferring you that you use the appointed name Cloud Gate (though, after seeing the unpopularity of this position, reversed his position and said, “I call it the Bean, too”).

Less well known is that Kapoor entered an exclusive licensing agreement with Surrey NanoSystems Read the rest of this article!

Another July 1st, Another Million Dollars For Bobby Bonilla

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Thought you had a good day, today? Probably not as good as Bobby Bonilla.

On January 3rd, 2000, the New York Mets bought out the final year of Bobby Bonilla’s $5.9 million salary with the team.

The terms of the agreement? Every July 1st for 25 years (from 2011 through 2036), the New York Mets organization has to pay Bobby Bonilla $1,193,248.20 (and as an aside, this money counts towards the team’s payroll).

For Bobby Bonilla, that was a brilliant execution of delayed gratification principles.

Think about that. In 2036, Bobby Bonilla will be collecting $1.19 million for a decision he made in 2000. That, my friends, is how you structure an intelligent financial life. It is all about making decisions today in such a way that you take good care of your future self that comes along five, ten, fifteen years from now.

Although most of … Read the rest of this article!

The Search For The Next Coca-Cola

In the most recent article that I published on Patron, I covered the stock that I believe is the most likely to be the Coca-Cola of the next generation. When I describe something as the next Coca-Cola, I mean a company that shares the attributes that made Coca-Cola such a magnificent investment over the past several decades and stands the highest probability of delivering returns reminiscent of what Coca-Cola achieved during the 1980s and 1990s.

To become a subscriber at Patreon and access this article, click here. 

Originally posted 2018-10-14 17:38:23.

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A Crazy Fact About Wal-Mart

Here is something I recently learned while reading Wal-Mart’s financial statements that I thought I would share with you: Over ¾ of Wal-Mart’s inventory gets sold before The Wal-Mart Corporation even has to pay for it. Three-quarters. 75%. Wal-Mart’s profit conversion cycle is one of the most crazily impressive business statistics I have ever seen in my life.

Is it any surprise that the company has grown cash flow per share every year for the past seventeen years, from $0.99 per share in 1996 to $7.50 in 2012?

Is it any surprise that the company has increased earnings per share in each of the past seventeen years, from $0.67 per share in 1996 to $4.93 in 2012?

Is it any surprise that the company raised its annual dividend from $0.11 per share in 1996 to $1.59 today?

(Note: I only reviewed data going to back to 1996—i.e. the starting point … Read the rest of this article!

Some Investing Wisdom From The Roman Poet Horace

At about 2:30 in the afternoon, today, July 1st, I took a look at my Seeking Alpha screen of the stocks that I follow and noticed that every single company I follow is up 1% or 2%:

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Personally, I get ticked off seeing prices rise like this. If you are a net buyer of stocks (and that is the key term), then you should not be happy seeing these price increases because these companies are becoming less and less attractive. For every dollar of profit and dividends that ConocoPhillips generates, you have to pay 1.37% more today than you did on Friday. Today, you have to pay 1.82% more for each dollar of profits and dividends that Emerson Electric generates than you did on Friday. Sure, if you are planning to sell those companies, this is good news. But if you are planning to buy stocks, you should … Read the rest of this article!