For those of you who have been invested in GE for years, mostly because of its generous dividend, the times have changed. No longer will GE be providing a 4 to 5% return on your stock holdings. No, it now will be closer to a 2% dividend rate. Which is among the several reasons the stock price has tanked recently.
Do you remember the controversy a few years ago when certain individuals tried to claim that it was their brilliance that made their companies great? “You didn’t build that” was the catch phrase. Because most of us know that to be successful, we need viable infrastructure (which means government investment) and dedicated employees- under the guidance of competent (hopefully- even inspired) management.
Yesterday, I explained how captive insurance companies are supposed to work. They serve as a means to minimize the risk, but don’t leave policyholders without any recourse- or, in the case of our firms, any potentially harmed folks without any chance to recover damages. Today, I will explain how this process is being subverted- these captives are being formed to rip off the public.