Compounders Podcast Building an Antifragile Investment Firm with Soo Chuen Tan, President at Discerene Group
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Feb 7, 2024 Soo Chuen Tan, Founder and President of Discerene Group, shares insights on building a successful investment firm managing over $2 billion. He discusses the unique drawdown structure designed for limited partners, emphasizing the importance of contrarian thinking. Soo Chuen highlights the delicate balance between valuing traditional profitability versus emerging disruptors. Additionally, he elaborates on navigating investment risks in diverse jurisdictions, especially in China, while fostering strong, long-term partnerships within the investment landscape.
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50-Year Investing Horizon Advantage
- Soo Chuen Tan emphasizes investing with a 50-year horizon to focus on fundamental business drivers, not short-term market perceptions.
- This long horizon changes investment priorities, valuing intrinsic value, culture, and competitive advantages over current earnings or market multiples.
Generalism Beats Specialization
- Over-specialization in investing poses risks as changing environments can render expertise obsolete.
- Adopting a generalist approach across geographies and industries enhances resilience and long-term success.
True Contrarianism Through Logic
- Reason independently from first principles instead of reflexively opposing the crowd to be truly contrarian.
- Retain the courage to stand by your valuation of intrinsic value despite prevailing market narratives.