Dividends and Double Identity

Double Identity in this instance is a movie staring Val Kilmer and Izavell Mhko which was released in 2010. If you watch the movie enjoy for its entertainment value, the backstory is based on the diamond trade and the levels DeBeers controls the cartel. Ever since Cecil Rhodes (Think the person behind Rhodes Scholarships) consolidated the diamond and gold industry in South Africa, the diamond industry has been run by the cartel. The cartel allows a limited number of diamonds to be sold and for many years it was relatively easy to run because the best diamonds came from South Africa. Nowdays diamonds are still mined in South Africa but also in Canada and parts of the the former Soviet Union. It is this setting where the fictional country wanted out of the cartel and found a willing retailer who wanted diamonds for less, mark them up and make even more money. The movie is a fictional account (we hope) of how far DeBeer agents and former special forces agents trying to stop the players in their tracks

Linking to dividend paying stocks, in the movie because it involved the use of murder to keep monopolies As investors you do not want to commit a murder just continually receive dividends from a profitable company. The only message from the movie is it takes a great deal of stress if you want to break up monopolies. It maybe exciting, it can be profitable but entrenched players want to keep the status quo. As an investor you like the status quo if it can enrich you.

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

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