Saturday, September 3, 2016

Pay Day!! Ford Dividend Received

How fun is it to get paid? A lot of fun!

Today, the fund received a dividend from Ford. A portion will be reinvested. Another portion will be donated.

A new purchase of shares since the last dividend payment and previous dividend reinvestment compounding increased the dividend 48%. Compounding previous dividend reinvestements added 3.1% over what it would be without the reinvestment. KDK Fund expects the next dividend to increase by about 2% next quarter without a purchase of more shares.

 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to or on twitter @kdkfund.

Thursday, September 1, 2016

Mylan and a KDK Fund Tenet

by Michael Keane

There has been an outcry from the public about the current Mylan EpiPen pricing issue. This news has brought to mind one tenet of KDK Fund’s investments. More specifically, does the company or project’s business processes reflect KDK Fund’s non-profit focused objectives.

KDK Fund uses this tenet in every investment decision. It doesn’t mean that there aren’t warts on the companies or projects that receive KDK Fund capital. Every company is imperfect, including KDK Fund. We just try to keep the capital flowing to those companies and projects that have processes or goals that inspire KDK Fund. One main support for this is the fact that there are more than enough good profitable ventures that meet this objective and that we don’t have to settle.

In terms of Mylan, KDK Fund is not surprised at the actions of the executives, or the reaction from the public. The CEO and the board were trying to make investors as well as herself (in terms of bonus, etc.) the most money possible. A recent WSJ article (here) all but declares it. It is also not surprising that once the public heard about the ludicrous and irresponsible behavior from Mylan executives, they yelled, screamed, and used social media to enact a revision to the pricing policy for the EpiPen. But here is a twist. Even though we as the public broadcasted our dislike for the policy, we also were either kind of dumb to the fact that we were actually part of the problem or our collective ego wouldn’t allow us to be associated with this behavior. It is very likely that you and I (through retirement funds) have benefitted financially through dividends and stock increases from Ms. Bresch’s decisions and Mylan’s pricing policies. But from all the yelling and screaming, I don’t ever remember hearing of one fund or investment firm returning or donating any income generated from these policies. Hmmm…...

Ultimately, this situation should serve us all as an opportunity to reflect and better understand our role as stakeholder and where and in what companies or projects we invest our hard earned money. By being on top of this issue, investors can make sure that their funds and money managers properly invest our money into companies that deserve receiving our money. If you are wondering how you can do this, email us at and we will answer back with some information. Fund and money managers are essentially just trying to make a living. Let’s show them how to also make a positive difference in their investing decisions. It is after all our money.