Prudence brings its own rewards

Banker puts life's necessities - house, children's education and pension - over life's little luxuries.

Mark Watts got his start in investing using money from his boyhood paper route. Mona Al Marzooqi / The National

Mark Watts is the managing director and chief information officer of NBAD Asset Management Group. The Briton, 44, who has more than 26 years’ experience in the fund management industry, has lived in Abu Dhabi for four years and is the father of two children, James, aged nine, and seven-year-old Sophie.

Describe your financial journey so far

I started by collecting coins and stamps from far-off countries, which got me interested in money and different cultures. I soon became a bit of a hoarder with birthday and Christmas money deposited in my savings account. I can still remember the feeling of seeing it grow and the excitement of the interest being added, which felt like a free gift at the time. At the age of 14 I had progressed to cycling down to my local bank in my school uniform to buy shares out of my paper round savings. My first investments were sourced from a mixture of The Sunday Times and a tip sheet called the Penny Share Guide. My A levels were geared to finance – statistics, economics and politics – and by the age of 18 I left formal education to start my career in finance. It’s a career that has now spanned 26 years and seen me work out of London, Boston and Abu Dhabi, covering clients from all corners of the planet.

Are you a spender or saver?

I have always been a saver or collector. I like to ensure I have the big picture right – house, children’s education, pension – and spend less on luxuries such as cars and hotels.

What is your philosophy towards money?

Two of my favourite sayings are “money makes money” and “you have to speculate to accumulate”. Many people do not realise that inflation takes a bite out of money unless you invest. That means that it is very important to think about your goals in life – house deposit, first car, children’s education, daughter’s wedding and so on – and provide for those goals regularly over a longer period. This takes the sting out of coming up with the money at the last minute and increases your chances of realising your goals. Longer term goals mean that an individual can take more risk, so never be afraid of equities for your longer-term aspirations.

Have you made any financial mistakes along the way?

Haven’t we all? Taking a car loan for my second car meant that due to depreciation, when I sold my car I ended up with no car but still had the loan. I now only tend to buy things that I can afford.

If you won Dh1 million, what would you do with it?

My general principle would be to pay off any mortgage debt, fund my children’s’ education, pay some into my pension plan and enjoy the rest.

What has been your biggest financial lesson?

Keep an eye on the big picture and also diversify. The big picture matters because no matter how good you think a single investment is, it will rarely work if the overall market is against you. Diversification means not putting all your eggs in one basket. Take a broader approach and look at different asset classes and different geographies for your longer-term goals.

What do you enjoy spending money on?

Simple: food and travelling with the family. We have laid down some fantastic memories over the years and many of them revolve around places we have visited and places we have eaten. I was brought up on a strong diet of camping and caravanning in the United Kingdom so we well understand that fun does not always mean five-star hotels. We prefer to eat and drink our money rather than sleep it.

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