All of this said, I don’t expect a rush away from using AUM as the defining criteria of greatness. It is much easier to simply brag about AUM than it is to run a good, sustainable business.
So the next time you are at some industry event and some owners start to brag about their firms’ AUM, remind them that only Bernie Madoff spends assets.
Mark Hurley, founder and CEO of Fiduciary Network, which has invested in many advisory firms.