Measuring Investment Success: The Batting Average

This chapter explores the concept of 'batting average' in investment portfolios, emphasizing its role in assessing the ratio of profitable investments to total investments. It also highlights key principles of value investing, the importance of intrinsic value, and insights from legendary investors like Charlie Munger and Warren Buffett on maintaining sound investment strategies.

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On today’s episode, Clay is joined by Soo Chuen Tan who is the founder and president of Discerene Group to discuss global & contrarian value investing.

Soo Chuen started his firm in 2010 with less than $100 million in AUM and has grown it to over $2 billion. Utilizing their strict value investing approach, Discerene has had an impressive investment track record since its founding in June 2010.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

02:30 - What led Soo Chuen to start Discerene Group shortly after the collapse of Lehman Brothers.

15:33 - What differentiates Discerene Group from other value investors.

20:34 - Lessons that Soo Chuen teaches younger investors.

38:43 - Whether great investing can be learned or not.

43:20 - How Soo Chuen balances the subjectivity of markets with solid and rationale investment approach.

01:00:19 - The importance of reflexivity in markets.

01:06:46 - How Discerene has avoided value traps.

And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
Check out Discerene Group.
Follow Soo Chuen on LinkedIn.
Jason Zweig’s article: The Seven Virtues of Great Investors.
Bobby Knight’s book: The Power of Negative Thinking.
David Chambliss’s The Mundanity of Excellence.
Solomon Asch Conformity Line Experiment Study.
Malcolm Salterl's Short-Termism at Its Worst.
Gopalan, Milbourn, Song, & Thakor's Duration of Executive Compensation.
Related Episode: Listen to TIP492: The Best Investor You've Never Heard Of (Nick Sleep), or watch the video.
Related Episode: Listen to RWH044: How to Beat the Market w/ Bryan Lawrence, or watch the video.
Related Episode: Listen to TIP592: Outperforming the Market Since 1998 w/ Andrew Brenton, or watch the video.
Follow Clay on Twitter.
Check out all the books mentioned and discussed in our podcast episodes here.
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