A little while ago, a movie called Flash of Genius was watched on You Tube, the movie was made in 2008 and started Greg Kinnear in the starring role. The movie is about a college professor and part time inventor who invents the interment wiper (if you drive it is the second setting) which is a good thing. After his invention, he patents and makes the rounds of the automobile companies, but he wants to manufacture it. The automobile companies tweaked his invention, for they do not want to deal with him as a manufacturer and use it. Mr. Kinnear’s character sues an automobile company and it takes 20 years plus to go through the courts and finally win. If he had sold the invention or offered a royalty payment his daily life would have been much different.

While the story is based on the wiper, if you know people who invent, have them watch the show and ask what is better to manufacturer or to have a royalty payment?

Linking to dividend paying stocks,  if you own these types of companies the answer to the above question is the royalty payment. The risk is low, other people will spend their lives ensuring the product is standard or the norm for the majority of users, and you do not have worry about manufacturing concerns, logistics, selling the product, you just worry how you will spend the money. Depending on how much comes in regularly, all of the previous have stress connected to it, it is often easier to deal with money – invest or reinvest? buy or save? do something or do nothing – building a cash balance is not a bad thing to do. These are good problems to have

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