Книжный клуб Михаила Емца

Aspirational Investor (Ashvin Chhabra)

Деловые книги
Aspirational means an investor who desires to achieve something in life, not “beat the market” only.

Since an aspirational investor has dreams and desires, the author justifies goal-based asset allocation. Particularly, the author divides the whole portfolio of any investor into three buckets: safe, market, and aspirational.

He writes: “… there are only three categories for your assets: low-risk with low return; market risk with market return; and high return potential with high risk. There is, alas, no low-risk, high-return bucket!”.

Generally, in finance risk is volatility (standard deviation). But the author confirms: risk is not about price movements. Risk is about a chance to fail to achieve life goals using markets as a tool.

Also, the book contains the framework, which helps to build your own goals-based investment strategy by asking questions:
  • How much money do I need?
  • When I need them?
  • How should I use financial markets for pursuing my life goals?

I recommend the book not only for retail investors but for financial advisers as well. At the same time, retail investors should be aware: provided framework can justify selling any investment vehicle even not in the best interest of a client. Who wants to be average? But it is another story.