You just need common sense to make money: ICICI Prudential AMC CEO Nimesh Shah

He dreamed of being an equity research analyst, but eventually landed a dream job of an obstacle remover, i.e., a CEO.

"I have held various roles in the ICICI group, and have been a CEO for the last 15 years,’’ said the CEO and Managing Director Of ICICI Prudential AMC Nimesh Shah in an exclusive conversation with Moneycontrol. He held forth on his alternative career plan, favourite book, and how he manages stress, among other things.

Rapid fire round with the MD and CEO of ICICI Prudential AMC

If not CEO of a large AMC like this, what would you have been? What's your alternative career plan?

I have been with the ICICI group for 30 years, in various roles in various businesses that are very different from each other. But for the last 15 years, I have been in this role. So I have forgotten my past life, who I was, what happened 15 years ago. AMC is my space.

When I was 22, my aspiration was to be an equity research guy. From a job in equity research, I became the CEO of that company. It’s a dream run. What else would I want?

One power quote you keep in mind when handling your clients' wealth?

Trust. "It takes a lot of time to build trust, but it can be broken in one transaction." That’s one. Secondly, as the quantum of money we manage grows in size, the go-to quote for us has always been that "Discipline and not individual brilliance is going to take us forward." Risk management and discipline is what this company stands for.

A book that’s close to your heart?

The first book I read on investment is something that I tell everybody to read. It’s One Up On Wall Street, penned by the famous mutual fund manager, Peter Lynch. It’s a very common-sensical investment book. It shows very clearly that you require common sense, which is very uncommon.

It has helped us make a lot of money. I know a lot of people who have made a lot of money in the markets. When you speak to them, you see that they are not much of a financial analyst, they don't do much financial analysis. But they are people who have used common sense very well.

While she does not know much about finance and investment, according to me, my wife can be a much better stock picker than me because she knows what will sell well tomorrow. She understands much better than me what will work in the market.

Your favourite global CEO, or a market guru that you look up to?

Like there is no one way of making money, there is no one way of running a company. What is appropriate for a company varies over time. Thankfully, in this job you meet a variety of people, a lot of CEOs, and you pick up the best things from them.

How do you manage stress?

I don't get stressed. I have got my dream job, so I don't get stressed. A CEO is more of an obstacle remover. I am required only when there is a stressful situation, otherwise, there is a system which is working. So I can't complain about stressful situations. I always like to be in the middle of those situations, they don't stress me.