Learn to draw lessons from mistakes, then share them

Rick talks about clients relating to him better because he had the courage to display his vulnerability and talk about the lessons learnt from his mistakes

Ganesh, a client, wanted to allocate some money to BBB-rated high-risk debt instruments to earn higher returns. My response was quite negative. I led him through the three parameters of risk, return and liquidity that are relevant to evaluating any investment.
 

The IL&FS and DHFL cases have proved that a debt instrument’s rating can decline rapidly from AAA to default status. In addition, liquidity (the ability to sell) even a AAA-rated debt investment is not particularly good, but it dries up completely in the case of a debt instrument whose rating is deteriorating. The investor gets no opportunity to exit