Cayden Chang, a Singaporean Value Investor, discusses his journey and experiences with value investing, including his mistakes and the establishment of the Value Investing Academy. They also cover topics like the tax system in Singapore, investment myths, and common misconceptions about investing.
Owning businesses is more effective for building wealth than being an employee, challenging the traditional belief in qualifications as a path to wealth.
Share prices alone do not accurately reflect the value of a business, emphasizing the need to consider fundamental worth and long-term potential.
Investing does not require a large amount of capital, fractional investing allows individuals to start with modest investments and benefit from compounding returns over time.
Deep dives
The Importance of Business Ownership in Wealth Creation
In this podcast episode, the speaker highlights the significance of owning businesses as a means to build wealth. They emphasize that the richest individuals in the world are business owners rather than employees. This perspective challenges the traditional belief that acquiring degrees and qualifications leads to wealth. The speaker encourages listeners to shift their focus towards understanding business ownership and investing in companies for long-term growth. They also mention the value of humility and giving back, drawing inspiration from Sir John Templeton and other successful investors.
Investing Misconceptions: Price Doesn't Determine Value
The podcast episode addresses common misconceptions about investing, particularly the belief that investing solely revolves around monitoring share prices. The speaker argues that price fluctuations alone do not accurately reflect the value of a business. They highlight situations where share prices rise despite underlying financial losses and caution against making decisions solely based on price movements. The episode encourages investors to adopt a more holistic approach by considering the fundamental worth and long-term potential of a company.
Investing with Small Amounts of Money is Possible
The podcast challenges the misconception that investing requires a large amount of capital. It highlights the availability of fractional investing, allowing individuals to invest smaller amounts of money. The episode emphasizes that even with modest investments, individuals can start their investment journey, benefiting from compounding returns over time. The speaker mentioned Singapore's example, where fractional investing is accessible, and encourages listeners to explore this option, debunking the notion that substantial funds are a prerequisite for investing.
Technology and the Evolution of Value Investing
The speaker acknowledges the evolving nature of value investing, even in relation to technology investments. While value investors have traditionally been cautious about investing in technology due to its fast-paced and unpredictable nature, the episode recognizes the shifting dynamics. It references successful, long-term value investors like Warren Buffett and Charlie Munger, who have adapted their strategies to include technology stocks. The discussion highlights the importance of recognizing changing trends and adapting investment approaches accordingly, while maintaining a focus on long-term value creation.
Defining Success: Choices and Inner Peace
The podcast explores the concept of success and extends it beyond financial wealth. The speaker emphasizes that true success lies in having the freedom to make choices and pursue desires, while maintaining inner peace. This perspective challenges the conventional notion that success is solely defined by wealth accumulation. The episode delves into personal aspects of success, including family and the joy of being surrounded by loved ones. It offers a broader understanding of success that encompasses both personal fulfillment and financial well-being.
Cayden Chang is a Singapore-based Value Investor with over 20 years of experience; he says that he spent a third of it making all the foolish mistakes that anyone has ever made and the other 2/3 building a family investment fund. He is the founder of the Value Investing Academy, where he hosts guest speakers, among them Lauren Templeton and Todd Finkle, both of whom have been earlier guests on Talking Billions. Cayden also built an endowment fund with Singapore Management University (SMU) to give away the returns to students who are financially challenged. He is a Campaign Ambassador With National Cancer Centre of Singapore to help raise $150 million for the next 5 years.
Cayden is the author of 4 books:
(a) “Do You Have What It Takes to be Boss?” - all sales proceeds were donated to The Straits Times School Pocket Money Fund
(b) “The Book of Hope by Cayden Chang” - all royalties were donated to Singapore Cord Blood Bank & National Cancer Centre of Singapore
(c) “Beginner’s Guide to Investing” (in Japanese); books were launched in the largest bookstore chain in Japan, Tsutaya - all royalties were donated to Children Cancer Association of Japan
(d) “Value Investing Simplified,” with a foreword written by Ms. Lauren C. Templeton —- it’s a delightful read; we talk about it in our conversation.
Been featured in more than 30 different media in total in Singapore 🇸🇬, Hong Kong 🇭🇰, Japan 🇯🇵, Cambodia 🇰🇭 and Malaysia 🇲🇾
Honouree of Lifelong Learners Award 2008 by Minister of Manpower, Mr Gan Kim Yong
Honouree of Personal Brand Award (Value Investing) 2017 by Marketing Institute of Singapore
Today, Cayden shares a very intimate family story with me that sheds more light on his true passion, not just for investing and value investing but, most of all, teaching others about investing. We talk about his early investment, and his experience of starting and running the famous Value Investing Academy. Cayden makes a very compelling case in favor of owning businesses and explains how it is one of the best ways to become wealthy. Stay tuned until the end, when we talk about investing myths, value investors and technology, and so much more.
Cayden is yet another Singapore-based Talking Billions guest — I spoke earlier with a good friend, Eugene Ng, the author of Vision Investing and the founder of Vision Capital. Eugene has been very generous with his advice and feedback on a few occasions, and we had a chance to meet and chat in Omaha as well. Chloe Lin is based in Singapore, and she was a guest on Talking Billions with Mary Buffett. Also, I’m about to record with Thomas Chua from Steady Compounding… what’s your secret Singapore?
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