Keki Mistry | Anything you do in life, do it with a long term view

He has been with Housing Development Finance Corp. Ltd (HDFC) for almost 34 years and is now its vice-chairman and chief executive. For Keki M. Mistry, 59, it’s all about having a long-term view. Both his career success and personal investment strategies vindicate this, as both have paid off. “I always take a long-term view on most matters in life including investments,” says Mistry who joined the firm as an assistant manager in October 1981.

Prior to HDFC, Mistry worked with Indian Hotels Co. Ltd. While he was there, Mistry got three offers—HDFC, Citibank and another small company. He had to choose between Citibank and HDFC.

Citibank was then an established firm, while HDFC was new with potential for growth. “I thought the opportunity to do something meaningful would be much higher in HDFC than in an established bank like Citibank,” says Mistry.

Not all who start off as assistant managers become leaders. “When you reach a certain level in an organization, you have to recognize that you can’t get closely involved in every decision. You need to prioritize matters which need urgent attention and focus on it. You also need to delegate. You should have overall knowledge of all critical matters. If you try to involve in every activity, the decision-making process in the organization slows down and motivation level of other executives falls,” he says.

He has a bird’s eye view when it comes to personal investments too. “My investments are handled by my wife. She liaises with the brokers and PMS (portfolio management service). The decision of what to buy and invest in is mine,” he says. Mistry says there are three broad classes of investments—real estate, equity and debt. Of these three, he doesn’t consider property as an investment. “A house is a basic necessity. It gives one a great sense of comfort and well-being to own a house at a young age,” he reasons. For investment, Mistry looks at equity. “I buy shares of fundamentally strong companies with good management and with a long-term view. Once I buy a share, I stop looking at its price thereafter. I don’t panic when markets fall. Fundamentally good stocks will always bounce back.” And as one gets older, putting money in fixed income instruments is prudent, he says. “Tax-free bonds is the best instrument in the fixed income space for working executives.”

Does he follow his advise when it came to his own investments? “For me, it was different. I bought my first house in 2005. In the initial years, my investments were almost entirely in equity—either direct or through mutual funds.”

And Mistry only invests in products that he understands and which will give him returns based on the time and effort he puts in. For instance, since he doesn’t understand how paintings are valued, he doesn’t invest in it. Also, overseas funds. “While you may sometimes get attracted, you should always remember that India today offers huge growth opportunity, so why look elsewhere? If you invest wisely, you will almost certainly make money in India in the long term.”

He has given all his time to his career. “For over a decade and a half, I used to be in office till 8.30-9pm almost every day. If I am in Mumbai, even today I go to office almost every Saturday and most bank holidays. My wife’s contribution to my career has been enormous. She has been patient and rarely demanded too much of my time.” Due to his tight work schedule, he has only started going on vacations quite recently. “Since the past four-five years, I try to take a 8-10 day vacation every year, which is usually abroad.” His favourite holiday spot is Bangkok.

Mistry ensures that he takes out time for fitness. “Two years ago, I had a very painful knee that would have needed a knee replacement surgery. The doctor advised me to loose weight. I lost 30kg through a combination of restricted food intake and stationary cycling at home. If I am in Mumbai, I do about 60 minutes of cycling every day.”

We ask him about his spending habits and he says, “I have a phobia for buying goods that I never end up using. For example, I buy a lot of watches, ties, jackets, shirts and T-shirts which I generally end up never wearing.”

His advice on success: “Firstly, never get dissuaded by short-term failures. Secondly, if you decide to do something, do it wholeheartedly and complete the task. Thirdly, prioritize what you need to focus on and don’t try to get involved in too many things at the same time. There will be lot of obstacles, but persevere and success will almost certainly come in the long term.” Also, never neglect family.

vivina.v@livemint.com