Retail & Consumer Services
Rick Bloom’s commitment to providing trustworthy service to his clients at Bloom Asset Management, Inc. paid off in a big way when the stock market began to tumble in 2008. His investment firm was founded without employee commissions in 1984 and instead focused on providing unbiased financial advice for its clients.
“We do what’s good for the client,” says Bloom, the firm’s founder. “Our advice is not based on what’s good for the firm. Our clients aren’t kept in the dark.”
Without commissions, there is no incentive to advise clients to invest in something that earns a larger commission for his company at the expense of the investor. If it’s not right for the investor, Bloom doesn’t want his firm to suggest that it is.
Clients know exactly what they are buying and are given a variety of resources to make the best possible decision. And if Bloom believes their needs can best be served by someone else, he’ll recommend just that.
It’s a message that Bloom conveys through regular free seminars, print columns and his hosting of financial radio talk shows. Bloom doesn’t use the shows to promote his business but rather informs listeners of the realities of investment products and tries to give them the tools to make good decisions.
Bloom reinforces his beliefs to his employees through a strong workplace culture in which each person has a say in how the firm operates. Bloom has only one vote and if a majority of his team doesn’t believe in a product, it’s not used.
Bloom rewards employees with bonuses, even if it means cutting his own compensation a bit when times are tough. He also helps them when they need it by bringing in additional staff, again without hurting his employees financially.
The philosophy has helped Bloom succeed in a very tough climate.