IBJNews

LEADING QUESTIONS: Investment guru on calming clients

Back to TopCommentsE-mailPrintBookmark and Share
Leading Questions

Welcome to the latest installment of “Leading Questions: Wisdom from the Corner Office,” in which IBJ sits down with central Indiana’s top bosses to talk shop about the latest developments in their industries and the habits that lead to success.

Michael Bosway, 52, grew up in a military family with a father who was a career officer in the U.S. Army and once served on the Joint Chiefs of Staff. The family moved 15 times while Bosway was growing up, which helped him to develop keen social skills as he adjusted to each new locale. That talent for empathy and making personal connections helped lead him to a career in the investment banking and brokerage industry. Since 1999, he’s served as president and CEO of City Securities Corp., the oldest and one of the largest locally-based investment brokerage firms in central Indiana.



Since the Great Recession hit in 2007 and the securities markets took a beating, Bosway has been busy leveraging his capacity for calming shell-shocked clients, as well as weary and wary employees.

“In a tumultuous time, we spend more time trying to talk people out of things than trying to talk them into things,” Bosway said. “They all want to run for the hills, whereas we need to look at it as, rather than following the herd, you have to go against the herd [and consider investing]. That’s where the opportunities really lie.”

In the video at top, Bosway discusses taking advantage of those opportunities, and provides a rationale for following the tried-but-true advice of diversifying investments across asset classes (such as stocks, bonds, cash and alternatives such as gold and real estate) and sub-classes (large and small companies, taxable and nontaxable bonds, international and emerging markets, etc.). Spoiler alert: For long-term success, he likes large-cap American companies with healthy dividends and a global reach.

As well as taking a toll on investors’ psyches, the recession also battered brokers (and the brokers’ own bank accounts) at City Securities. As head of the firm, Bosway focused on rallying the troops.

“It’s important to seek help as a group, so that’s what we tried to do—get our arms around everybody here and make sure that we’re OK so that we then can go communicate to our clients and tell them that this will end at some point,” he said. “America is not going to end as we know it. Those are the kinds of philosophical statements you have to make in a period like that.”

While he exudes the cool demeanor of a relationship counselor, Bosway also has a steely nature forged from a childhood spent in athletics and a college career in varsity baseball at University of Dayton. He drew some inspiration from the diamond as he piloted a more aggressive strategy for the firm.

“If you’re happy sitting on the bench, that’s OK, but I’m the kind of kid who wants to get in the game," Bosway said. "And my contention years ago was that City was on the bench and that we weren’t moving forward and taking advantage of opportunities or seeking opportunities that were out there. I didn’t know exactly what we would look like, but we needed to get in the batter’s box.”

In 2006, the firm created City Financial Corp. to serve as a holding company for City Securities and newer, related ventures. The ventures met with varying degrees of success. The purchase of ReCasa Financial Group, which provided loans for the purchase and rehab of small residential rental properties, failed to pan out. (City Financial sold the firm earlier this year.) City Real Estate Advisors Inc., formed in 2001 as a full-service syndicator of affordable-housing tax credits, took off and is expected to account for 35 percent of City Financial’s revenue in its current fiscal year. Overall, revenues for the consolidated firm (for which Bosway also serves as president and CEO) have increased nearly 200 percent over the last decade.

In the video below, Bosway recounts his experiences as an itinerant kid and how a youth baseball coach helped inform his current managerial style. He also expands on his sports metaphor for learning how to take educated, well-informed risks.





 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT