Discounts

I saw in The Star Newspaper in Malacca (Malaysia) today an advertisement that reads as follows:

“We’re giving a discount on discounts.”

This is from Citibank. What a catchy statement.

Reminds me of the time decades ago when I was working in private equity fund management (aka venture capital). A colleague of mine was working on a deal in a certain country. At that time we thought it was a good idea to invite a local prominent and influential person to be our partner in a project. We thought we would be generous, so we offerred to sell our potential partner some shares in the project at a very attractive discount. It was, in our view, an offer that could not be rejected.

Guess what? It was rejected, but with a twist. Our potential partner replied very courteously and very seriously, as follows:

“Thank you so much for your kind invitation. I don’t need the shares. But I will take the discount you offerred in cash!”

It took us quite a while to realize what this potential partner was saying, and when we realized it, we quickly junked him.

It was Aristodemus who said: “Money makes the man”.

G K Chesterton said: “To be clever enough to get all that money, one must be stupid enough to want it.”

The biblical advice is to be “not greedy of filthy lucre”.

And the reason for this advise?

“For the love of money is the root of all evil”