The Medici were once the most powerful family in Italy, the family ran a bank and one of its biggest clients was the Pope. In addition, the family helped sponsor and encourage the Italian Renaissance particularly around the city of their hometown – Florence. In the book The Medici – Godfathers of the Renaissance written by Paul Strathern, Vintage Books, London, 2007, the Medici were the dominant financial and political family in Florence.

In the book, the author went through 300 years of the Medici family – a family that started in banking, used the connection to run Florence Italy and produce a number of sons and grandsons and great grandsons. The sons in the fragile time of Italian politics helped keep the peace as well as encourage and commission artists such as Leonard de Vinci, Michelangelo  Donatello and a host of others. The grandsons became Pope of the Catholic Church (Clement VII and Leo X) and eventually the family married royalty –  Catherine  and Maria were Queen of France) who introduced Italian cooking to France which made French cooking better. Some of the arts programs the French love were introduced and supported by the Italians. Along the way ensuring a heir was on their minds. The good thing about a heir is the bloodlines remain, the bad thing is just because of their bloodlines, it does not mean the person has great administrative abilities or have leadership skills. Some of the heirs did not, but were thrust into the positions anyways which lead to decreasing revenues. It is always easier to spend someone else’s money, than to increase the wealth of the state.

Linking to dividend paying stocks particularly in companies where their is a dominant shareholder many families wish to appoint the sons and grandsons to leadership roles. Not all children are worthy or responsible for leadership roles. Sometimes the company suffers because the heir is not worthy although the family hopes the person grows into their role. When the company is private it does not matter, when the company is public it is important to ensure those that have power are responsible. When the AGM happens vote well.

There are more questions than answers till the next time – to raising questions