In my last post I sneered at the idea that Masters of the Universe could ever be replaced by machines. To put some more color on that thought, let’s look at my own industry, the financial advisory business. read more »

In my four-part posts on the emerging markets, I suggested that one reason for caution on those markets longer term is that the development model for emerging societies may be breaking down. (“Submerging Markets, Part 2” post of 8/1/13.) That model, which has worked nicely since the Industrial Revolution, relies on the fact that capital is much more mobile than labor. Thus, capital tends to flow from wealthy developed societies, where labor is expensive, to poor emerging societies where labor is cheap. read more »

In my last two posts (scroll down) I first set up the situation: the fourth generation of the Smith family had got a great price for the family business, albeit not without a lot of bruised feelings, and now had, net, $250 million in cash. In the second post I described how the Smiths promptly lost almost half the fortune in the 2008-09 market debacle, and how, in the process, they had lost something even more precious: the happiness of their family. read more »

In my last post (scroll down) I set up the situation: the fourth generation of the Smith family has sold the family business, thought to be worth a little more than $100 million, for $500 million cash. Setting aside debt repayment, taxes and fees, the Smith’s have a tidy $250 million in cash. read more »

Let’s assume you’re a member of the Smith(1) family. Way back in the late 1890s your great-grandfather started a company that you still own. Back then it was a modest little thing and it barely survived World War I. But then along came the Roaring Twenties and the company began to grow. Alas, along come the Great Depression and the company nearly collapsed. read more »