From Gowdie Family Wealth (Australia) – The majority go with the herd — which is why it’s called ‘the herd’.
When the prevailing social mood is SKI, Spend the Kids’ Inheritance, advocating an alternative, disciplined approach to managing capital is readily dismissed as ‘unfashionable’. Ironically, the ones who go against groupthink are laughed at… But remember, those who laugh last laugh loudest.
There’s no question that as a custodian — charged with the responsibility of managing the family asset base for the benefit of future generations — the low growth environment presents a real challenge.
There’s a delicate balance between generating enough income to live on, and trying to build the family’s capital base without taking on undue risk.