Last time the blog looked at fraud, today we are examining people some of the world’s greatest real life detectives and their toughest cases. The book is called the Super Sleuths written by Bruce Henderson and Sam Summerlin published by Macmillian publishing, NY, 1976. The book examines 13 of the world’s leading detectives and highlighting their toughest cases to bring justice to their city. In some ways we believe it should be easier today, however all the reasons why people commit crime in the past have not changed and it still takes a great deal of though and work to find the people responsible. Not all criminals leave huge clues, some leave precious few. However in the toughest cases, the resources of the department are focused on the suspect(s) which will mean somebody will find a clue to link the criminal.

In all the examples of the detectives from around the world, they all used time and good old fashion rules to eliminate the possibilities and be left with finding the criminals. Police need the help of citizens for clues, although police never expect citizens to give exact leads, but clues to narrow the list. If you were asked what was the person wearing that passed you when you had a break, you would likely have an idea but not remember everything (even if you know the person). The police use the clues and filter through what they know and the general public does not know. In one case, the police were looking through a white van in the city. The police were also looking for a person and each time they had a discussion with owners of white vans, they asked probing questions about who was driving and when or the vans normal routes in the city. Eventually they found their driver. In another case, the criminals ruled the area which meant even though people knew, they said little. In the case, the detective moved into the area and did routine things of eating out in the evening so people could see him. Eventually, people begin to tell him where to look to find the criminals. It took time, patience and gaining trust.

Linking to dividend paying stocks, while it is hoped you do not spend all your time looking for criminals, it is desirable to examine their skill set to help you do financial detective work. In the market, everything revolves around money – is the company making it; do they consistently earn a profit; how are they doing it; the more you are satisfied with their business model and execution of it, the more you are comfortable with investing in the company. Some are easier and over the years as you determine your formula – some of the sign posts with be simple. If the company does not make money, what do I do? or when do you sell (as well as buy) come into focus. With a dividend stocks, if the dividend becomes less do you want to own the stock? Knowing when to sell or exit or when the case is close is a good thing.

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