This is not just a sales book. It's about how to structure your business with truth and integrity, how to put your clients needs first, and how to have the guts to only do the kind of business that you really want to have. Murray nails one of the great truths of investing: most investors cannot reach their goals without investing mostly or entirely in stocks, and catering to their fears and helping them invest partially or completely in bonds can be viewed as a disservice to them. Murray suggests that if you cannot convince a prospective client of this fact, then they do not deserve you as an adviser. While I do not accept everything he says as gospel, I have been heavily influenced by his books and articles, and my investment advisory practice has thrived, even through the recent market decline. I continue to read his stuff whenever it comes out -- and you should too, if you're interested in building a business that will not only be profitable -- you will be proud to have it.
This book focuses on the client-needs approach of selling investments. It is a sales book that teaches how to use the right words to close the sale and teaches the registered representative why the "hot" investment is not always the "right" investment. Further, it teaches that the "right" investment is always the "right" sale.
This is a classic on Wealth Management and I believe that it also teaches many a gem on how to correctly build and manage expectations.
I have a decently technical/ mathematical/ programming financial background, but I believe that this book reminds us all that that might often be overkill in this industry. In fact, I believe the author is correct in his belief that using technical details is often akin to shooting yourself in the foot because of human bias.
That being said, I loved the section about using the utility stock dividends to sell. And also the fact that you should focus on value and dividends versus a price series because I very much agree.
What I would have liked to have seen is the following (I have never seen this in a similar book):
Using Dollar Cost Averaging, pick a random market top or close to it. Set the start of your program to only occur 5% from a top (since no one really can time direction, right?) where it is confirmed that it changes direction later. Then what would be the total return even if the market plummets in a recession if you reinvest your gains and dividends? That would be nice to see and is something I have done the basics of, but never seen an author prove. If someone were selling an engineer on the market, that might be something to use (or just stay away as a wealth professional..haha). Just my $.10
This is a selection of Nick Murray's articles published in the early 1990s. It is still timely, especially with today's low interest right environment and America's continued fight to cash in their portfolio. A must read for financial advisors