Advisors are continual learners. Many of them read voraciously to gain a better understanding of business, investing and human nature.
Because they are likely to work from home during the pandemic, they can squeeze more productivity out of their day. Less commuting time affords more time to read.
So what are they reading?
Andrew Rosen, a certified financial planner in Wilmington, Del., participates in an informal book club with his firm's leadership team. Every quarter, they pick a business book to read and discuss.
Examples of books they've read recently include "Radical Candor" by Kim Scott and "Traction" by Gino Wickman. Both gave Rosen much food for thought.
He found "Radical Candor" eye-opening because it challenges the prevailing belief that polite lies are appropriate. It's often better to level with people about their actions or behavior.
"The main takeaway is we think doing the best justice to people is to care about them but not speak candidly to them," Rosen said. "But that's actually doing them a disservice."
As a result of Scott's book, Rosen learned that it's better to say, "I care about you. I think you can do better. It's for your growth."
"We're afraid to be honest because we don't want to hurt their feelings," he said. "Now I'm more candid in a caring way."
The book has influenced how he communicates with clients, he says. He's more apt to speak compassionately while also expressing supportive candor.
"There's a way to be honest and speak with more conviction without causing hurt," he said. "I'm more sensitive now when I'm candid, and it leads to better conversations."
Lead With Your Passion
Another book that enhanced Rosen's communication skills is "Start With Why" by Simon Sinek. To convert prospects into clients, start with your central purpose — why you do what you do and why it matters — as opposed to how you do it or what services you provide.
"It flips things on their head," Rosen said. "Starting with that core happiness and why it's meaningful to you is better than trying to convince people to come to you."
As long as you're consistently driven by your passion, you can attract others to your cause. People tend to make buying decisions, such as choosing professional service providers, by admiring what they stand for rather than what products they sell.
For some advisors, books that relate directly to portfolio management can make a big impact. Stories that portray the human side of legendary investors — not just their technical genius but also their personalities — are especially popular.
Books that demystify the investment strategies of iconic figures such as Warren Buffett and John Templeton tend to resonate with advisors. Extracting homespun observations from these billionaires and sharing them with clients can prove instructive and inspiring.
Rob Emrich III, founder and managing partner of Acruence Capital in San Antonio, Tex., raves about "The Man Who Solved The Market" by Gregory Zuckerman. It describes how Jim Simons applied his skills as a mathematician to launch Renaissance Technologies, a hedge fund known for its quantitative focus.
Great Stories Capture Investing Wisdom
For Emrich, a highlight of Zuckerman's book isn't just the sustained success that Simons achieved over decades of building his firm. Instead, it's the way the billionaire achieved it.
"The market is very difficult to beat," Emrich said. "But Simons has consistently crushed the market. He has the brain power, work ethic and ability to use data science" to produce superior results.
Whether investments prove winners or losers, the real test for advisors and their clients is their relationship with money. As George Kinder and others have written, we form attitudes about money whether we realize it or not. By exploring how money intersects with our values, we can manage it more maturely and enjoy a richer, fuller life.
Gage Paul, a certified financial planner in Hudson, Ohio, just finished the new book, "The Psychology Of Money" by Morgan Housel. Aside from its insights about how consumers save, spend and invest, Paul marveled at the author's craft.
"I'm jealous of how well he writes," Paul said. "His storytelling is great. And it's super-simple. He boils down good investing values" in an easy-to-understand manner.
Paul found one of Housel's pithy observations particularly memorable: Save like a pessimist, invest like an optimist.
Savers who accept the possibility of a calamity — even if the odds are very low — keep sufficient emergency cash on hand. And long-term investors harness the power of compounding, ride out down cycles and stay the course.
