Investment advice from a dying banker

Gordon Murray, a former managing director at Lehman Brothers and Credit Suisse, didn't have any bucket lists when he elected to stop treatment for brain cancer. Instead, he wrote a book, with the help of his friend Daniel Goldie, on the basics of investing - and which runs counter to much of what he did on Wall Street. From the NYT:

The mere fact that Mr. Murray felt compelled to write it is itself a remarkable story of an almost willful ignorance of the futility of active money management -- and how he finally stumbled upon a better way of investing. Mr. Murray now stands as one the highest-ranking Wall Street veterans to take back much of what he and his colleagues worked for during their careers.

Among the steps he urges readers to take:

--Hire a financial adviser who earns fees only from you and not from mutual funds or insurance companies.

--Divide your money among stocks and bonds, big and small, and value and growth.

--Subdivide between foreign and domestic (American stocks' share of the overall global equities market keeps falling).

--Decide whether to invest in active or passively managed mutual funds (he goes for passive, since no one can predict the future with any regularity).

--Rebalance by selling your winners and buying more of the losers.

As Ron Lieber notes in the piece, "This is not new, nor is it rocket science. But Mr. Murray spent 25 years on Wall Street without having any idea how to invest like a grown-up. So it's no surprise that most of America still doesn't either."

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook