It's becoming a time-honoured tradition. I used to do it. My kids do it.
While parents sip on rosé wine on the beach of Knokke Le Zoute, their children are setting up shop for the summer.
Their misson: to learn the essentials of trade in home made paper flowers using 'couteau' shells for currency. Basically, they're putting their parents at work creating and repairing the paper flowers, set up a small shop next to where the parents are sitting and trade away, using a specific type of shell as currency. These shells can also be found at the beach, washed up by the flood each day. For reference, a flower can fetch between 10 and 80 shells, depending on it's size, prettiness and the gullibility of the buyer.
Some valuable business lessons learnt:
As intermediators between family offices and investors, we often get asked whether we seek to replace the role of banks.
It's not an illogical question, given the rise of various Fintech startup's which challenge the banks in various business models.
Some examples of well-known challenger companies:
Over the years, we’ve had many conversations with our members and their advisors on risk. While Princip.al does not provide any investment advice, mainly acting as an information channel to and between family offices and other investors, it’s essential for us that we understand what risk truly is.
One of the most common misconceptions, often pointed out by our members who are less public market prone, is that volatility is risk. The stock market is a good example of this. For instance, the Nintendo company’s stock market value suddenly rose massively through the success of the Pokémon Go game, then to suddenly drop again when Nintendo kindly pointed out they wouldn’t make too much money out of it. That’s volatility to you. Was the Nintendo company riskier or less risky before or after the announcement? Probably not. It’s the same company with the same management making the same products in the same countries and currencies.