If you’ve never seen the movie “Other People’s Money,” starring Danny DeVito, go rent it.
Not because it’s one of my favorite movies…
…not because it contains one of the funniest lawyer jokes ever told…
…but because it’s got some epic business lessons embedded within.
The basic premise of the flick is that DeVito plays an investor who is referred to by his critics as “Larry The Liquidator”.
He buys up troubled companies, fixes them and then sells them for a profit.
Of course, companies resist this because they like things the way they are. They hold out and stick with bad financial decisions because of tradition, a perceived duty to the community, a perceived duty to employees, and so on…
…a duty to everyone but the owners of the company — the shareholders.
In the movie, a business Larry is trying to buy is willing to tank the company and go out of business…all to resist change. Change that would SAVE the company.
But… oh so common. Some people resist change to the point of self-destruction.
If you’ve been following the life insurance industry, you’ve probably noticed some curious things happening. Namely, some big names in the industry have exited the business of individual life insurance altogether… MetLife and Voya, for example… some of the largest sellers of life insurance in the world… poof.
They have retreated into the darkness, instead deciding that non-life insurance products are more profitable. Not only that… these companies are actively selling off their life insurance business and want nothing to do with it whatsoever. It’s almost like a disease. They can’t get away from it fast enough. There’s a lesson in there, if you’re an astute reader. A lesson which has implications for pretty much any decision you make about which companies to do business with.
But, in case you’re having trouble nailing that lesson down, come join my email list. I’ll blow it wide open for you.