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TIP647: Value Investing Masterclass w/ Soo Chuen Tan

Jul 26, 2024

01:17:02

Snipd AI

Founder of Discerene Group, Soo Chuen Tan, shares his value investing journey and tips for younger investors. Topics include reflexivity in markets, avoiding value traps, unique partnership structures, skills development for analysts, staying objective in financial planning, and mastering value investing inspired by Warren Buffett and Charlie Munger.

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Quick takeaways

Focus on fundamental, long-term, contrarian, global value investing.

Emphasize partnership culture, long-termism, and fundamental value investing principles.

Enhance investment skills with fluency in various disciplines and continuous practice.

Deep dives

The Founding Journey of Diserene Group

Su Chen Tan started Diserene Group shortly after the collapse of Lehman Brothers in 2009, with a vision of aligning his investment doctrine with Warren Buffett's approach to investing over a 50-year horizon. He emphasized the importance of fundamental, long-term, contrarian, global value investing. Su Chen outlined the significance of owning businesses, maintaining a generational time horizon, seeking large margins of safety in investments, and embracing a global mandate. The establishment of Diserene Group stood out due to its unique structural approach, placing emphasis on patient investing and integration of incentives to align with long-term value creation.

Master the Fundamentals, Harness the Numbers

01:18

Perception Shapes Value in Investing

01:22

Value Lies in Substance, Not Illusions

01:18

Margin of Safety and Contrarian Investing for Long-Term Returns

01:29

Intro

3min

Long-term Contrarian Value Investing Philosophy and Unique Partnership Structure

18min

Sponsor Highlights: Range Rover Sport, Public.com, VECASA

3min

Developing Skills in Accounting and Value Investing for Young Analysts

19min

Staying Objective in Investing and Financial Planning

10min

Challenges of Short-termism in Corporate and Investor Behavior

11min

Mastering Value Investing and Lessons from Warren Buffett and Charlie Munger

9min

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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