Constructing your Personal Capital

Also by J.L. Eaton
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Our Philosophy

1. Our Philosophy
2. How this Website is Different
3. About the author, J.L. Eaton 




Our Philosophy


This website's capitalist-centric financial approach represents a patent rejection of the modern term, "investor".  Benjamin Graham, co-author of the seminal investment work Security Analysis and also Warren Buffett's mentor, all but pronounced the term "investor" as dead -- and that was in 1934!  During the great speculative bubble that Wall Street so aggressively encouraged in the late 1920s, little distinction was made between naked gambling and investment.  It didn't get any better.  In the 21st Century, absolutely no distinction is made in the financial media between dice-throwing, day-gamblers and what Graham and Buffett would rightly deem investment operations.  Because of the devolution of our language concerning investment, "capitalist and capitalism" is used by JL Eaton to reference Graham-Buffet-style investment operations that are clearly distinct from casino-like speculative gambles.  

Warren Buffett, the world's most successful capitalist, provides a capital allocation philosophy that represents CapitalistCurriculum's first set of guiding principles.  Mr Buffett has demonstrated for more than 50 years that he is the master capital allocator.  This makes him an outstanding economist (he holds a Masters in Economics from Columbia); however, Buffett's economic philosophy has been tested by real events for many decades.  Having taken $100 of his own money, and increased it to a fortune worth tens of billions of dollars, Buffett has demonstrated to the world all that needs to be known about finance.  Buffett, in turn, has unapologetically called Benjamin Graham his hero. Graham wrote and taught a comparatively simple premise: if you don't analyze the business that underlay a given stock, you will lose money, and possibly lots of money on that single point of ignorance.

Stocks represent, in the first and last analysis, a business. Buffett took this fundamental premise and greatly increased its effectiveness by treating all businesses, whether privately- or publicly-held, the same. All businesses are evaluated as if there is no other market; there is simply a buyer and a seller in a private transaction. If you were to purchase the Dry Cleaners around the corner, what would you pay for the entire business? If you don't know how to place a total purchase price on that business, how do you know whether you are being asked to pay far too much for a given stock?

 
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How this Website is Different

This website is different than most, as it relates to its readers a coherent and logical methodology for pursuing the benefits of long-term investment.  It is presented in the form of learning the Capitalism written of by Adam Smith (Wealth of Nations), and practiced by Warren Buffett, Charlie Munger, Benjamin Graham, and several others who Buffett included in his intellectual village of Graham and Doddsville during a 1984 address to a group of Harvard finance students.


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About the author, J.L. Eaton

Through the mechanism of CapitalistCurriculum.com, J.L. Eaton brings the aspiring mini-capitalist a coherent, multi-tiered approach to the fundamental precepts that underlay economics, finance, income tax, and advanced investment strategies.  Mr. Eaton brings to bear a unique blend of undergraduate Business Law teaching experience, more than 15 years of real estate and securities investment experience, and both broad and deep study of finance and economics, as they relate to investments.  Following the award of a Juris Doctor (law) degree with honors, Mr Eaton served as a Business Law lecturer at the University of Maryland.  Among the topics covered in his Business Law  courses were: Debt Obligations, Business Bankruptcy, Law of Sales, Contracts, Business Entity Structure, Income Taxes, and fundamental precepts that underlay Banking and Securities laws. 

Additionally, all prior teaching experience and a formal commercial law education served as a mere introductory prelude to what became an intensive, five-year self-study program that integrated the pre-existing business and law foundation with the most important elements of economics and finance.  The subsequent combined education can best be described as a comprehensive financial approach that emulates the approach taken by capitalists (but in so doing, it rejects the Wall Street approach).  Specifically, an unbroken line of successful capitalism runs from the original writings of Adam Smith in Wealth of Nations to the most successful capitalist of them all, Warren E. Buffett, Chairman and CEO of Berkshire Hathaway, Inc.   Buffett is not alone, however.  Such modern capitalists as  T. Boone Pickens, Michael Dell, and slightly more remote individuals such as J. Paul Getty of Standard Oil are called upon, as well.

Through organized lessons for enrolled students, Mr Eaton introduces fundamental financial, economic, legal, and income tax concepts in a graduated series of seminars.  All seminars, from the most fundamental, to the most advanced, are aimed at the singular goal of fully preparing students to comprehend critical, but all-too-often misunderstood information about capital markets, true investments, and long-term wealth-building.   

The intensive study of traditional finance, economics, and advanced investment philosophy led to one startling conclusion: the subject areas are not in concert.  That is, traditional economics and finance, developed in earnest since the late 1950s and still practiced today (catastrophically as of 2007-2009), cannot be squared with the investment philosophy and practical experience of Bejamin Graham, John Burr Williams, John Maynard Keynes, Phil Fischer, Charlie Munger, and, most astoundingly of all . . . Warren Buffett . . . the most successful capitalist and investor of all.   Advanced economic theories, such as Modern Portfolio Theory (MPT), must be closely re-examined in light of empirical data.  That is, the named individuals above found tremendous success by acting in a manner that is diametrically opposed to the principles of MPT.   If MPT were a good representation of reality, the successes should not have been possible.  However, an alternative conclusion for the empirical data is that if the succcesses occurred, then the theory is flawed.

 
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CapitalistCurriculum.com is designed to provide relevant financial information
necessary for comprehensive wealth building.