Continuing the sheer incompetence story.

When you have seen somebody s..w up a portfolio from the periphery what do you do? Well, I tried warning both F and S (You have to read the first part) that they were not on the right path. S was a big believer in Real Estate and had bought properties in many parts of the world (country of course). He was earning well, his wife was earning decently as a school teacher and he was willing to leverage). I remember he once told me “but Subra the amounts that F is handling cannot kill me really”. I like Ayn Rand says ‘Just shrugged’.

Now (2013) wanted blood. Unknown to me he had approached a criminal lawyer (oops he was my classmate who called me for untangling the mess – I refused saying I know them too well and would do nothing to take sides in a story which was incompetence, not fraud). The daughter (and wife) did not utter a word to me. My respect for that woman is sky high. She talks to me IGNORING the fact that I know how much churn she is going through.

S told me “I feel he should compensate me”. I said “F is incompetent – qualified as a botanist and worked in various unrelated jobs – as a banker you showed tremendous incompetence in selecting a fund manager”.

I think both know (but will not admit) that it was a case of sheer incompetence – of S. He chose a wrong adviser.

Even worse. This loss of Rs. 3 crores (S’s figures not authenticated of course) did not happen overnight. Somewhere in the journey why S did not see his portfolio being s..d I have no clue. That is worse than F taking on the responsibility of doing something that he had no competence or liking to do.

D wanted S to just ignore the whole thing. I attended her daughter’s marriage recently and found that she had aged prematurely. She is a dear friend so I really feel for her.

F died but gave too much to S (my view) to buy peace. However F and S were not on talking terms for the past few years, but S did attend the funeral of F – which I could not attend as I was out of station.

I also know that S’s 2 sons went to see a lawyer wanting to challenge the transfer of property of F to S. Luckily I had warned the lawyer about this case, and he convinced the sons that the cost of doing this was not worthwhile. Both the sons love their sister and have enough money of their own. As expected S’s widow is penniless and completely dependent on her sons.

Interestingly S has a net-worth which should be about 5x the nw of the other 3 kids put together.

None. Repeat none. Have peace of mind.

My learning:

Love is important, but competence is what is required to manage money. Do you go to your mom if you have a dental problem or do you go to a dentist?

Why would you go to a botanist to look after your portfolio?

Why would you blame an incompetent man of committing fraud? WHEN YOU know it is incompetence not fraud.

Why would …..oops my questions are unending.

Sad end to a sad story.

I hope the story ends with the death of F. It is time S gave up his venom.

Not for his sake, but for the sake of his wife. She is my friend.

Here, praying for her.