Advisor Speak 9th June 2014
The best advice you can give your clients now
Dhruv Mehta, Chairman, FIFA

imgbd When markets hit new highs every passing week, the challenges for advisors keep increasing - should they continue to recommend investing into equities, or pause and wait for markets to catch their breath. Dhruv Mehta shared some timeless, priceless thoughts of Nick Murray, one of USA's finest advisors and writers, with FIFA members last week, which help immensely in putting the right context to this advisory dilemma. FIFA shared this with Wealth Forum, to enable the wider distribution fraternity across the country imbibe Nick Murray's 10 core beliefs on investing, which are helping guide many FIFA members in their client conversations.


Dear Friends,

With a new majority government in place, hopes and aspirations have risen sky high, fuelling expectations of high economic growth over the next decade and leading the sensex to all-time high levels. We are all grappling with the issue of whether to invest money in equities at these high levels.

I came across a very thought provoking set of core beliefs about Investing by Nick Murray ( which I am reproducing below. Nick Murray is a hugely successful US based financial advisor and best-selling author of classics including "The Excellent Investment Advisor". His 10 core beliefs, I believe, will enable each one of us to focus on what matters most for long term investing success of our clients, and cut out a lot of unnecessary noise that daily market levels bring into our lives.

  1. I believe that the fundamental investment risk is not losing one's money, but outliving it.

  2. I believe, therefore, that the only safety lies in the accretion of purchasing power.

  3. I believe that the great long term risk of stocks is not owning them

  4. I believe that everything you need to know about the movement of stock prices can be summed up in 8 words: The downs are temporary; the ups are permanent

  5. I process the experience which most people describe as a "bear market" in two different words: big sale.

  6. I don't believe in Individual Stocks, I believe in managed portfolios of stocks.

  7. I believe that dollar cost averaging will make the dumbest person in the world wealthy. Hey, look at me: it already has.

  8. I love volatility.

  9. I'm not afraid of being in the next 25% down tick. I am afraid of missing the next 100% uptick.

  10. I believe that, prior to retirement, people should own as close to 100% equity as they can emotionally stand. Then, after retirement, I believe they should own as close to 100% equities as they can emotionally stand.

Lets embrace these 10 core beliefs, lets build our convictions around them, and lets transmit this conviction to all our clients. If we do this, we will take a big step forward in helping our clients get on to the path of successful wealth creation.

Share this article