After a person leaves high school or post secondary education, the lessons they learn will not be a graded but whether one was a success or failure. Since most of us are not perfect, life will give some successes and failures along the way, the issue if you are to lead is what did you learn and how will try to avoid it the next time. After the education system society in generally measures success and failures in monetary terms or did you make money or lose money? There are many paths to success and failure, but what road is taken when a failure results?

Sometimes the sons and daughters of the more influential people in society should have more options or seemingly more knowledge about risky paths than others, in reality there are many examples of sons and daughters losing money.

In an article from Reuters, the President of the European Central Bank Christine Lagarde, who through her job has access to great amounts of information about banking in Europe and what financial assets are to be avoided, given the first rule of investing – try not to lose money. Ms Lagarde said he sons who are in their 30’s, contrary to her speeches and public stances invested money into crypto money and managed to lose 60% of their money.

Linking to dividend paying stocks, often people have to lose money or invest in stocks that have terrific years then over the next 5 years give all the gains back to be almost flat. Few people set up to lose money, but they invest in the hot sector and they have gains but do not sell. The stock markets turn to the next hot sector and the previously hot sector’s total return begins to turn downward. Investors hold on to their shares because it could go up, there are valid reasons for the sector to go up, but because it is no longer hot, the demand is not there. Eventually, investors examine dividend paying companies and realize investing in profitable companies that can pay dividends over the years increases your total return, which is a very good lesson to learn.

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