TIP647: VALUE INVESTING MASTERCLASS

W/ SOO CHUEN TAN

25 July 2024

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.

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IN THIS EPISODE, YOU’LL LEARN:

  • What led Soo Chuen to start Discerene Group shortly after the collapse of Lehman Brothers.
  • What differentiates Discerene Group from other value investors.
  • Lessons that Soo Chuen teaches younger investors.
  • Whether great investing can be learned or not.
  • How Soo Chuen balances the subjectivity of markets with solid and rationale investment approach.
  • The importance of reflexivity in markets.
  • How Discerene has avoided value traps.
  • And so much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: On today’s episode, I’m joined by Soo Chuen Tan. Soo Chuen has quite an impressive background as he’s the founder and president of Discerene Group. Before starting Discerene Group, he was the managing director and partner at Deccan Value Advisors and an analyst under Seth Klarman at Baupost Group.

[00:00:17] Clay Finck: Prior to that, he received his MBA with high distinction from Harvard Business School and bachelor and master of arts degree in law from Oxford University, where he graduated first in his class. He started Discerene Group in 2010 with less than 100 million in assets, and he’s grown it to over 2 billion in AUM.

[00:00:35] Clay Finck: While I’m unable to share Discerene’s performance numbers due to compliance reasons, the firm has had an impressive investment track record since its founding in June 2010. Soo Chuen operates within the boundaries of a very strict value investing philosophy, only investing when a deep margin of safety is present.

[00:00:52] Clay Finck: Because of this, he’s had a batting average of 82 percent within disarrays investments, meaning that for every 10 investments he’s made, he’s been profitable on more than eight of them. Even Peter Lynch said that you would make it into the investment hall of fame if you could bat just 60 percent. During this episode, Soo Chuen and I discuss what led him to starting Discerene Group shortly after the collapse of Lehman Brothers, what differentiates Discerene Group from other value investors, lessons that Soo Chuen commonly teaches younger value investors, whether great investing can be learned or not, how Soo Chuen balances the subjectivity of markets with a solid and rational investment approach.

[00:01:30] Clay Finck: The importance of reflexivity in markets, how dis arena has avoided value traps and much more. Soo Chen is incredibly thoughtful and intelligent, so I think you’re really going to enjoy this one. With that, I bring you today’s episode with Soo Chuen Tan.

[00:01:47] Intro: Celebrating 10 years and more than 150 million downloads. You are listening to The Investor’s Podcast Network. Since 2014, we studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Clay Finck.

[00:02:16] Clay Finck: Welcome to The Investor’s Podcast. I’m your host Clay Fink, and today I am so pleased to welcome Soo Chuen Tan to the show, Soo Chuen. It’s so great to have you with us.

[00:02:25] Soo Chuen Tan: Thank you for inviting me Clay. It’s a privilege to be here. I’m a big fan of your show.

[00:02:30] Clay Finck: I wanted to start with the founding of Discerene Group.

[00:02:33] Clay Finck: You have such an interesting background and such a great run so far since you started in 2010. So after the collapse of Lehman Brothers in 2009, you for some reason started the process of launching Discerene Group. And in hindsight, it might seem obvious to launch a firm because asset prices were low, sentiment was depressed.

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