This May, we met with Mr Phil A. Woods from Abele Asset Management! Formerly a Director at UBS and Citibank, Phil now runs Abele Asset Management as Managing Director and CEO. Abele Asset Management is a digital fund complex that invests primarily in the private markets. He kindly shared his extensive experience in the fintech and private markets with us, which we have captured in our members’ reflections below.

We are so grateful for Phil’s generosity in onboarding as a donor to Next Gen this year. Next Gen continues to grow stronger because of established investors like Phil and we do not take his time and insights for granted!

Z Club photo with Mr Phil Woods (far right)

Had a delightful session with Phil woods from Abele Asset Management! He shared about his story from the US, taking a chance to come to Singapore after his boss suddenly approached him and how he ended up starting his entrepreneurial journey to come to Singapore.

Phil was brilliant and illustrated how his fund is able to be precisely so successful through the use of a very interesting game played on wall street – with real capital involved (I took away some real capital as well !) While underscoring a very important lesson – always check how much it costs to loan.

Overall, we grasped a deeper understanding of private equity and private credit and its various underlying business strategies. Something interesting which we took away was private equity’s overall dominance compared to public markets, which was refreshing for our members given our club’s focus on the public markets.

Jo Vial Ho

I enjoyed the MTI with Abele Asset Management very much and thought it was very engaging as Phil designed a game for us to play and we had fun trying to strategise and think like an investor. Apart from the game, Phil shared about his company’s business as an investor in other private equity managers as well as a trade receivable business which he explained very simply. One takeaway that will stick with me is having the power to step away from investments you do not want and not having to feel an obligation because of the effort put in etc.

Blossom Vera Jeremiah

I really enjoyed the MTI session with Abele Asset Management—it was one of the most engaging sessions I’ve attended. Phil brought a refreshing energy to the room by starting with an investment game that challenged us to think like real investors and weigh risk vs reward in a dynamic way. It made the whole experience much more interactive, and it also helped us better understand the mindset behind some of the investment decisions Abele makes. Beyond the game, Phil dove into the specifics of Abele’s approach in the private credit space, particularly focusing on trade receivables and supply chain finance. I found it fascinating how Abele structures its investments—funding SMEs that sell to large, creditworthy buyers like IKEA, and earning a healthy spread while minimizing credit risk.

He also highlighted the importance of understanding the true cost of financing—something that may sound obvious but is often overlooked. His point about never assuming the cost of borrowing and always thinking in terms of asymmetric return potential really stuck with me. It was also insightful to hear about their more cautious stance on physical commodities and groceries due to high dilution rates, and how they choose not to chase hype-driven stories in the public markets—like those involving Gojek and Grab—where valuations often run ahead of fundamentals.

Overall, I felt this session helped me better understand how private credit and private equity work in real life, and how funds like Abele navigate opportunities with discipline and a strong focus on fundamentals. It also broadened my perspective beyond the public markets we usually focus on, and I came away with a deeper appreciation of how structured thinking, patience, and selectivity are key to long-term success in investing.

Chelsea Chew

I really enjoyed the MTI session with Abele Asset Management—it was both insightful and engaging. Phil gave a very clear and thoughtful overview of how Abele operates in private markets and private credit, and I appreciated how he broke down these complex areas into simple, easy-to-understand concepts. One part I found especially useful was his explanation of current income strategies in private markets—how they prefer consistent monthly or quarterly payouts over back-ended returns, which is something I hadn’t considered before. He also spoke about the importance of DPI (distributions to paid-in capital) and how, as investors, we need to be focused on how much actual cash is returned per dollar invested, not just paper returns.

In private credit, it was eye-opening to learn how Abele steps into areas where banks have pulled back post-crisis, and how they price risk carefully by asking, “how much yield is worth the risk we are taking?” His example of trade receivables and government IOUs really helped me visualise how these instruments work in the real world. I also found their long-term thesis on Asian healthcare particularly interesting—it makes a lot of sense given Asia’s aging population, and it was inspiring to hear how they’re targeting unlisted firms that are building real healthcare infrastructure and services.

Most of all, I appreciated Phil’s reminder that just because you’ve put in time or effort into evaluating an investment doesn’t mean you need to commit to it. Having the discipline to walk away is a powerful idea that I’ll definitely carry with me. The interactive game we played helped drive home many of these concepts in a hands-on way, and I’m really thankful to Phil for taking the time to guide us through his thinking and experience.

Xiu Lin TEO

Thank you Phil for taking the time to share your experience and knowledge with our club members. We eagerly look forward to the next time we can meet!

Late this March, a few of our Z Club members had the privilege of having breakfast with Mr Henry Soediarko from First Estate Capital Management, a Singapore based investment and wealth manager that closely work with Milltrust International Group, an investment organisation co-headquartered in London and Singapore.

Henry is the Senior Portfolio Manager and Head of Research for the Climate Impact Asia Fund at First Estate Capital Management, a fund dedicated to addressing climate change through positive impact solutions.. Starting his career at Citi and HSBC and with over 12 years of experience in the Asian equity long-short hedge fund industry, Henry brought a wealth of knowledge in portfolio management, trading, risk management, and ESG analysis into our conversation.

Read on to find out the reflections and insights three of our members gained from meeting Mr Henry!

Z Club members with Mr Henry Soediarko (Far Left)

Meeting Henry was an insightful experience, offering a deep dive into the realities of investing across different markets. With almost 20 years of experience spanning large banks and entrepreneurial ventures, he has a nuanced understanding of the financial landscape, particularly in Asia and the U.S.

One of the most striking takeaways was Henry’s perspective on Asia’s growth potential. He acknowledges its role as a powerhouse driven by two economic giants but also notes that India is becoming expensive especially after a good run last year. Meanwhile, China, despite facing a property downturn, has seen a significant rebound in equities, reinforcing the idea that economic cycles are inevitable and often present investment opportunities. His emphasis on two key factors, earnings growth that is often followed by capital inflows provides a clear framework for evaluating markets.

Henry also touched on the importance of the U.S. as a market that cannot be ignored, primarily due to AI and tech advancements and the global influence of the dollar as a reserve currency. This perspective underscores how macroeconomic forces shape investment decisions at a strategic level.

His thoughts on corporate governance were particularly interesting, especially in the context of Southeast Asia. He highlighted Indonesia’s e-Fishery fraud case, where a lack of on the ground research led to failures. The question he posed whether investors should sacrifice corporate governance for higher returns was thought-provoking. While activist investing can help steer mature companies toward better projects, the balance between governance and profitability remains a critical challenge.

Henry’s insights into specific companies also stood out. He mentioned LG Chemicals and its subsidiaries, LG Energy Solution that supplies toTesla, illustrating the importance to deep dive on the business fundamental. His ability to test both BYD and Tesla firsthand further emphasized his hands-on approach to investing.

Sustainability was another key theme. Henry has a deep appreciation for ESG investing, particularly in emission reduction. He categorizes investments into two areas: those directly reducing emissions and those driving earnings growth i.e. cost reduction through sustainability efforts. He also acknowledged that young companies need room to make mistakes, a realistic take on the challenges of scaling climate impact ventures.

His perspective on India was pragmatic acknowledging the midcap opportunity while recognizing the cyclical nature of democracy, where governance shifts create both opportunities and challenges. Networking was another key lesson he stressed that in investment circles, nine out of ten interactions may lead nowhere, but the one that does can be transformative. His reference to the author of Market Wizards as his previous boss’s top investment person was a reminder of the value of learning from seasoned and less well known investors.

Overall, Henry provided a realistic, experience driven take on investing. His ability to balance macroeconomic insights, corporate specifics, and sustainability considerations made the discussion not just educational but also highly relevant to today’s investment landscape.

Mouli Raj

Key Takeaways from Recent MTI with Henry Soediarko

· Investment firms face challenges with workforce motivation and effectiveness, with some team members being less proactive. Middle management turnover is common, with some employees being more effective asset managers than others.

· Positive outlook on growth opportunities, particularly through networking at family office events and potential partnerships in regional pension funds.

· Ongoing interest in ESG investments, driven by industry trends and personal experiences in infrastructure investment projects.

· ESG: Cost center or value driver? Henry questioned whether ESG funds truly drive value or if they serve more as a branding tool for large institutions like JPMorgan, Bloomberg, and MSCI.

· Market trends & investment strategies:

o Money has not yet fully flowed into China, creating opportunities for export-driven earnings growth.

o Smaller markets often have less broker coverage, leading to higher upside potential.

o China remains a proven manufacturing center with decades of expertise, contrasting with India's emerging position.

o High tendency for firms to hire individuals who reflect their own background and perspectives.

· Strategic considerations:

o The Market Wizards book was recommended by Henry

o The effectiveness of extrapolating investment trends remains uncertain, as market conditions are constantly evolving.

Joshua Heng

Speaking to Henry and hearing about his story on starting his fund was insightful and interesting. I enjoyed hearing about the different considerations a fund has when starting to scale. I also enjoyed his sharing on the history of ESG investing and how ESG metrics offered by different firms such as Bloomberg and Reuters. As an investor who's interested in ESG, I liked how Henry pointed us to focus more on whether ESG considerations were a cost or profit centre and whether they were financially material, which is something that many of us, young optimistic investors, fail to take into account when excited about a new investment opportunity with strong ESG performance.

I would definitely recommend attending future MTIs with Henry if one is interested in hearing candid views about financial markets and current affairs.

Gaius Ang

This April, we had the privilege of meeting with Manpreet Singh from Veddis, an Investment Company based in London.

Manpreet Singh is a seasoned investment professional with over 15 years of experience in global equity and credit markets. Currently serving as a Portfolio Manager at Veddis, he oversees a diversified portfolio spanning high-growth equities, resilient income-generating assets, and special situations. His expertise lies in fundamental research-driven strategies, with a track record of generating alpha across sectors such as Energy, Financials, Retail, and Telecom.

Prior to Veddis, Manpreet held pivotal roles at leading institutions including Altavista Investment Management, Ronit Capital LLP, and Nomura’s proprietary trading team. He began his career as a Business Analyst at Monitor Group (Mumbai) and holds an MBA from the prestigious Indian Institute of Management Ahmedabad.

We are very grateful for the opportunity to meet with Manpreet and to learn from his extensive investment experience. Contained below are three of our members' reflections and takeaways from the sessions!

Reflection on the MTI with Manpreet – A Journey from Trader to Owner

Thanks for such an insightful and thought-provoking session. Hearing Manpreet’s personal evolution from a high-turnover long-short investor to a concentrated, conviction-driven long-term shareholder gave me a lot to reflect on. I was especially struck by the honesty with which he shared not only his successes but also the limitations and challenges of his past strategies. The shift from focusing on short-term price dislocations to truly understanding businesses "through cycles" really resonated with me. It reminded me that investing is not merely about numbers and timing, but about building trust and alignment with businesses and the people who run them.

One concept that deeply impacted me was the idea of investing as an “owner,” not a “trader.” The question Manpreet poses before each investment—“Would I be willing to own this company forever?”—is a powerful litmus test. It emphasizes how crucial conviction and deep understanding are. Too often, especially for newer investors like myself, there’s a temptation to chase opportunities based on surface-level metrics or recent performance, without truly grasping the long-term drivers or risks involved. Manpreet’s approach reminded me to slow down, go deeper, and focus more on quality and sustainability rather than immediacy.

His reflections on risk management were equally valuable. The framing of existential risk and the discipline to avoid low-quality businesses with unpredictable outcomes is something I will try to internalize. The honesty in saying “just because a stock is down doesn’t mean it’s cheap” or “don’t expect things to get better before you sell” felt both humbling and empowering. It shifted my perspective from seeing risk as volatility, to seeing risk as ignorance or overconfidence in what cannot be known. This nuanced view gave me a better framework to differentiate between short-term noise and real red flags.

One of the most valuable takeaways from the conversation with Manpreet was articulation of team culture and decision-making environment. His emphasis on transparency, humility, and a no-blame culture speaks to an organizational ethos that prioritizes clarity of thought and intellectual honesty over ego or hierarchy—a mindset that is critical for the success of a research-driven investment process.

What stood out to me most was Manpreet’s thoughtful transition from a fast-paced, trading-oriented approach to a slower, more research-driven and conviction-led style. It reflects not only strong discipline, but also an open-mindedness to evolve with experience. His inclusive attitude and willingness to share both successes and lessons openly made the session especially insightful. I walked away with a clearer sense of how to approach investing with greater patience, depth, and intention.

I’m truly grateful for the opportunity to join this online discussion—it was an eye-opening experience that deepened my understanding of long-term investing.

Warm regards,

Olivia ZHANG

During our session with Manpreet, several key insights were shared on long/short equity investing, business quality, risk management, and the dynamics of managing capital within a family office setting.

1. Investment Philosophy and Approach

Manpreet's equity strategy lies in identifying good businesses with strong tailwinds and resilient fundamentals — businesses that are not easily replaceable. For example, while a Michelin-starred restaurant may appear attractive, it lacks a sustainable moat. In contrast, a business like McDonald’s, although less glamorous, exhibits a much stronger competitive advantage.

Valuation discipline is equally important. Even the right business purchased at the wrong price is unlikely to generate attractive returns. The goal is to find high-quality businesses trading at reasonable valuations, with the ability to protect the downside.

2. Evaluating Business Quality

Key characteristics of an investable business include:

• Having more tailwinds than headwinds in its industry.

• Being difficult to replicate or replace.

• Exhibiting a strong economic moat, such as high barriers to entry or capital-intensive infrastructure (e.g., Railroads. He gave us an example whereby a competitor might have the same financial resources to build another railroad but the market does not need 2 of such services).

• Ensuring management incentive alignment — ideally, compensation structures that are variable and closely tied to long-term share price performance. Excessive focus on short-term stock movements is seen as a red flag.

3. Risk Management and Position Sizing

Manpreet distinguishes between acceptable risks and unmanageable uncertainties:

• Regulatory risks, such as those facing online gambling firms, are sometimes worth taking if the downside is limited (e.g., a manageable fine). Position sizing is adjusted accordingly.

• Broader macro or tariff-related risks are harder to hedge and generally avoided.

• Attention is paid to obsolescence risk — for example, a company in a fast-changing industry like cybersecurity is at a higher risk of becoming obsolete, while market leaders in a traditional sector like traditional banking are more likely to remain relevant over the next five years.

• In family office investing, risk tolerance is lower due to smaller balance sheets compared to banks. Mistakes in fixed income (FI) can be catastrophic, while equity mistakes are often more forgiving and easier to correct. For example, in pharmaceutical investing, a failed drug trial may wipe out value entirely, unlike other sectors where thesis revisions can lead to timely exits.

4. Diversification and Portfolio Construction

An ideal portfolio consists of 20 to 30 uncorrelated names. While some companies like Facebook and Amazon may seem diversified on paper, they often move together due to sector correlations. However, long-term "end destiny" should be the key criterion for diversification — not short-term price correlation. Manpreet noted that while it's difficult to mathematically prove uncorrelation with small data sets, qualitative judgment and deep reading help build conviction.

In terms of return expectations, equities offer higher internal rates of return (IRRs), with the potential for doubling capital in five years at a 15% IRR. This differs from fixed income, where returns are capped and errors less forgiving.

5. AI and the Role of Discipline

AI has not yet transformed the investment process in a revolutionary way. Manpreet sees potential in evolving tools like Gemini and GPT for information gathering but is still waiting for breakthroughs that meaningfully impact decision-making.

He also emphasized that discipline outweighs technical skills. His background in computer science gave him problem-solving abilities and mental discipline — traits he finds more valuable than coding in day-to-day investing.

6. Exit Strategy and Capital Alignment

Knowing when to exit is crucial. It’s better to sell when the thesis has changed rather than hold out in hope for a turnaround. He reiterated the importance of having aligned incentives between the investor and the principal, particularly in family offices. These conversations about risk alignment must happen before significant drawdowns, not after.

Finally, he noted that Veddis Capital has limited cash on hand, implying the team is still able to uncover attractive investment opportunities — a testament to the idea that there are always pockets of value in the market.

Zhi Heng Fong

Manpreet’s discussion delivered a couple of gems in capital allocation and portfolio design. His insights on allocating capital were that you usually have few months to do so and more important is to keep that position as philosophy changes through time considering macroeconomics and the like. On portfolio design, his take is on investing well and if you get out to execute your trade, do it but it shouldn’t be the main objective.

Later on, his discussion went into the structure of the business, volume, pricing as his first things to see on a stock to buy. On a second layer in a business is its moat that is not easily replicable. The same is applied vice versa on family offices as his point of view is that you must diversify with at least 20 to 30 meaningful stock selections with a 10-year perspective on each segment and each stock to design a correlated portfolio.

Fabian Vera

*Written below is an article penned by Singapore Chapter Co-CEO, Jo Vial HO with reflections from Z Club members Brandon Lim and Zhi Heng Fong for the incredible Meet-the-Investors Session we had with Vikrant Bhargava this March!

An Afternoon with Vikrant Bhargava: Hustle, Curiosity, and Long-Term Thinking

We had the privilege of sitting down with Vikrant Bhargava, the founder of Veddis, a family office, and the mastermind behind PartyGaming plc, which soared to an IPO of USD 8.5 billion. In our conversation, Vikrant shared insights into his investing philosophy, daily routines and critical ingredients for sustained success.

Vikrant’s journey is nothing short of remarkable. From entrepreneurship to investments, he has carved a path that blends relentless hustle with strategic foresight. As the former co-founder of PartyGaming, which achieved a landmark IPO valued at USD 8.5 billion, he found himself at an incredibly fortuitous position after the IPO and decided to go into investing. Describing himself as more of an “operator”, Vikrant then wanted to move into the investment space as his mindset shifted to wealth preservation rather than creation.

Vikrant with Z Club members this March

When pressed on the secrets to his success, Vikrant didn’t mince words. “Hunger,” he said simply. His insatiable drive propelled him through grueling 18-hour days as he climbed the ranks—from cracking IIT to excelling at Bank of America, and eventually building his startup empire.

Acquisition of knowledge was something that he viewed as extremely important as well. This can come through any means possible: podcasts, video content or books. To be curious and hungry to feed that curiosity was something he ascribed to his success.

Vikrant also explained how adequate sleep sharpens focus, making it a pillar of high performance. It’s a lesson many overlook in the cult of busyness.

Overall, our members benefited and learnt much from this session. It was an absolute treat to be able to meet him and it allowed for our members to reap much from this session. Hear some of their thoughts below!

Personal Reflection from my MTI Session with Vikrant Bhargava

During our MTI session with Vikrant Bhargava, what resonated most deeply with me was his mindset on money. Vikrant prioritizes wealth preservation over aggressive risk-taking. He emphasized that downside risk protection is far more critical than chasing flashy returns, especially when the goal is to preserve and grow wealth over time. This was a refreshing reminder that, while ambition is important, long-term success often comes from protecting the base rather than constantly swinging for the fences.

As the session progressed, we explored how to assess quality businesses and management teams—an area that particularly intrigued me. Vikrant’s view was clear: strong companies are underpinned by resilient and competent leadership. He pointed out that businesses overly reliant on external funding are particularly vulnerable during economic downturns. When liquidity dries up, poor capital allocation and financial management can swiftly lead to a company’s demise. This made me more mindful of the importance of balance sheet strength and self-sufficiency when evaluating companies.

Vikrant also highlighted that effective management is holistic, extending beyond shareholder returns. A company’s leadership should be aligned with all stakeholders, including customers. Without a loyal customer base, even the strongest financial model can falter. I found his emphasis on fostering an open, feedback-driven culture particularly meaningful. Teams that feel safe to speak up and challenge decisions contribute to a company’s agility and long-term health—something I will consider closely in both investment decisions and when reflecting on my own leadership values.

We also discussed the critical role of corporate governance. Vikrant pointed out that the best board members are those who come prepared, ready to ask tough, insightful questions. Evaluating management’s historical capital allocation decisions, and whether senior leaders hold insider ownership, is key to understanding whether executives are truly aligned with long-term company goals. This has shifted how I view governance—it’s not just a checklist but a signal of whether a company is built on solid foundations. On a more personal level, Vikrant’s reflections on negotiation and communication struck a chord. He spoke about the power of being direct and knowing when to say "no"—a skill that has allowed him to be intentional with his time and energy. Equally, his approach to creating win-win outcomes reminded me that effective negotiation isn’t just about closing deals but also about building trust and goodwill. His belief in continuous learning also left a strong impression on me. It reinforced the idea that no matter how much we accomplish, there is always more to explore, learn, and master.

To conclude, I am truly grateful to Vikrant for sharing his time and experience with us. His humility, combined with deep insight, has provided me with valuable takeaways both professionally and personally. I look forward to applying these lessons and to engaging in future MTI sessions with him.

Zhi Heng Fong

What I learnt from speaking with Vikrant Bhargava

Vikrant’s sharing with us was nothing short of insightful. I was particularly surprised by how humble he is despite his outstanding success in various endeavours in life – from entrepreneurship and finance to philanthropy. Behind his success, I believe we see someone who has achieved what he said his parents expectations were – to be a good person.

I had many takeaways from the 1.5 hours with Vikrant.

Firstly, he shared about the importance of teams, from the people you work with to the management teams of companies. Vikrant believes that we should find people with complementary skillsets as no two member in the team should have the same skills. It is only through finding competent people that have complementary skills that we can delegate successfully in a high-trust environment. On management teams, he believes that management should be aligned to stakeholders, build a flat structure in the company and prioritize customer feedback.

Additionally, Vikrant mentions the importance of leverage in life. Especially for philanthropy, he would rather spend the money helping organizations and governments drive greater change. Donating a sum of money to help one person would have limited change, but donating for a cause that is able to greater raise more money will impact society on a larger scale.

My last takeaway is to be open-minded in life. Our careers could take a drastically different path from what we expect. Vikrant has changed locations multiple times over the course of his life, and he believes that we should never be too comfortable in life. Once we feel that we have settled, we should shake ourselves up and push ourselves even further.

Brandon Lim

This February, Persis, Business Manager at Next Gen Investors Endowment, and Mouli Raj, a Z Club alumni, had a chat with the founder and author of MBI Deep Dives, the renowned equity research newsletter. They introduced the Z Club to him, and Mouli Raj took away nuggets of gold from their conversation that we hope to share with you today. Read on to learn more from the incredible mind and experience of MBI Deep Dives!

Read on to learn Mouli's reflections from their conversation:

The conversation Persis and I had recently with him was incredible. As a result, I gained many new perspectives on investing and how to approach it with the right mindset. He shared practical, thought-provoking ideas that helped me realize that investing is much more than buying and selling.

Why Do Stocks Move?

One of the first things we discussed was the main reasons stocks move. He broke it down into three factors:

1. Dividend Yield – The income investors get from dividends.

2. Earnings Growth – How much a company’s profits grow over time.

3. Multiples Re-Rating – When the market changes how it values a stock, often based on outside factors like the economy or sentiment.

The first two are straightforward to analyze, but multiples re-rating is tricky because it’s driven by things we can’t control. He pointed out that it’s almost impossible to predict when this will happen. For making sound decisions, embracing this uncertainty is more important than chasing short term gains over the next two to three years.

This is especially because while over the long-term, valuation multiples are a function of the growth and competitive advantages a company enjoys, in the short-to-medium term it can be heavily influenced by interest rates and investor sentiment, which might not always be justified.

The Problem with Industry Pressure

He also shared something that really struck me: most of the investment industry is set up in a way that pushes people to act, even when it might not make sense. Instead of focusing on truly understanding a business, many professionals feel forced to figure out whether to buy or sell just to meet expectations.

This led to an important takeaway: Sometimes, providing a thoughtful perspective on a business can be more valuable than taking action. This is especially true for technology companies, where predicting long-term value is incredibly difficult. A strong opinion backed by research can often matter more than trying to forecast everything perfectly.

The Power of Awareness

One of the biggest realizations we discussed was awareness. He explained that every investment strategy has its own challenges and trade-offs. Recognizing these doesn’t mean we need to fix or fight them; it’s more about being mindful of how they shape our decisions.

For example, instead of rushing to act because of short-term market tensions, it’s better to step back and focus on understanding the situation fully. This kind of awareness helps investors stay grounded and avoid getting caught up in unnecessary noise.

For example, take two hedge funds that invest in Indian public markets, each using a different approach, yet both achieving great success.

Nalanda Capital, run by Pulak Prasad (author of What I Learned About Investing from Darwin), follows a patient, long-term strategy. They invest in businesses and hold onto them for 5 to 7 years or longer, rarely selling. Their approach relies on deep conviction, and this disciplined method has consistently put them among the best-performing hedge funds.

In contrast, Sage One, led by Samit Vartak, takes a more dynamic approach. They focus on companies that are expected to double their earnings within 2 to 3 years. This strategy is faster-paced and growth-driven, and it has also produced outstanding results since the fund began.

Both of them would be aware of their shortcomings in their investing approach and would be mindful of them.

Research and Memo Writing

One of the most practical tips he gave was about memo writing. He said we shouldn’t treat it like a chore or just another task to complete. Instead, it’s an opportunity to dive deep into research, which is where the real insights come from.

He pointed out that great investors like Warren Buffett don’t think of investing as just buying or selling stocks. They see it as a way to understand businesses deeply and think long-term. This mindset makes all the difference.

Staying Consistent

Finally, he emphasized the importance of consistency. In investing, some so many people are fully committed to research and analysis. If we don’t stay focused and consistent, it’s easy to fall behind.

His advice was simple: keep writing, keep researching, and keep improving. Even if progress feels slow at first, sticking with it will pay off in the long run.

Final Thoughts

This conversation with him left me with a lot to think about. It reminded me that investing isn’t just about chasing returns or timing the market. It’s about building a thoughtful approach, staying aware of the challenges, and committing to continuous learning.

What stood out the most was how he views investing as more than just a profession it’s a way of life. His words have inspired me to stay curious, stay consistent, and never stop learning.

Thank you MBI Deep Dives for taking time out of your schedule to meet the members of the Z Club and sharing your incredible experience and insights! We look forward to meeting you again!

On 11 October 2024, we had to opportunity of meeting Sudhanshoo Maroo in person. Sudhanshoo is a Portfolio Manager at Veddis, a single-family office focusing on long-term growth by investing across a diverse range of public and private assets globally.

Before the session, Sudhanshoo told us to research on Taboola, a publicly traded advertising and technology company that focuses on native advertising and content discovery.

Please read the takeaways from two of our members who attended the session.

I felt that the Meet the Investor (MTI) session with Sudhanshoo on 11 October 2024 was extremely insightful and interesting. During the session, we mostly discussed the business model of Taboola (NASDAQ: TBLA) and the industry it operates in. I learnt that it is of supreme importance to truly understand the business and its industry when deciding whether to invest in a company. Below are some of the key takeaways which I had from the session:

1. Taboola primarily runs native ads below their publisher partner website articles.

At the very core of native ads is the concept of placing ads in a relevant and unobstructive context where they natively fit. As a result, native ads are most likely to look just like all other articles and pieces of content around it (Fig. 1). Taboola primarily runs native ads below their publisher partner website articles (Fig. 2).

Figure 1. Examples of native ads run by Taboola

Figure 2. The different types of ad placements on a publisher's website

2. Taboola primarily makes money when users click on or view ads which they run on their publisher partner sites.

Advertisers pay Taboola on a CPC (Cost per Click) or CPM (Cost per one thousand impressions) basis. CPC is a measurement of the amount of money advertisers pay when a consumer clicks on their ads. On the other hand, CPM is the cost advertisers pay per 1,000 ad impressions — or 1,000 loads of a page with their ads on it.

Taboola then shares a portion of the revenue with the partner publisher sites displaying the ads. This portion paid to the publishers is known as Traffic Acquisition Costs (TAC).

3. Taboola is a big fish in a “small” pond.

The “Below Article” native advertising industry has a smaller market size as compared to the “Publisher Homepage” and “Mid Article” markets due to its lower visibility and viewability. Currently, as of 2024, the market size for this “Below Article” industry amounts to revenues of around $3 billion. Taboola, after its partnership to run ads on Yahoo’s platforms, has access to around $2 billion of this revenue. This makes it the dominant player in this market, with around 2/3 of the market share.

The industry also operates as a duopoly, with Taboola and its rival Outbrain (NASDAQ: OB) dominating around 90% of the market share in the industry.

4. Some key risks to Taboola’s business which came up in the discussion:

• Rise of Adblockers

  • Possible increasing use of adblockers by users of the openweb to block out ads when browsing the web may negatively affect Taboola’s revenues.

  • This is because some Taboola ads may be perceived as “sleazy” or “scammy” in nature (Fig. 3).

Figure 3. Some of the ads which Taboola runs which may look “sleazy”

• Artificial Intelligence (AI) may alter the way people browse the openweb

  • With the rise of generative AI, it may make it easier for people to use generative AI chatbots to get their news and information as opposed to surfing the openweb for such information.

  • This may negatively affect traffic and engagement on Taboola’s publisher partner websites, affecting Taboola’s ability to reach out to end users for its ads.

Generation Z Investment Club, VIP

How Cheng TONG

In our recent session on 10 November 2024, we had the privilege of hearing from Alix Pasquet, a seasoned investor and Managing Partner at Prime Macaya Capital. Alix’s journey from the world of gambling to managing a successful fund has shaped his unique philosophy: the best investors balance cutting-edge technology with sharp personal judgment and continuous introspection. Alix began by spotlighting the seismic shifts in investment brought on by the internet and AI, which have reshaped traditional industry dynamics and ushered in fierce new competition. He urged us to “understand the enemy”—in this case, AI—not just by adopting these powerful tools but by strengthening areas where machines fall short: qualitative analysis, creativity, and strategic intuition. He believes that in an investment world increasingly driven by data and machine learning, human insight remains essential, particularly when it comes to reading situations and navigating complex decisions. One of the most compelling parts of Alix’s philosophy is his belief that successful investing must align with one’s personality. He encouraged us to embrace personality profiling (through Myers-Briggs or other tools) and use it as a guide to tailor investment strategies that resonate with our natural strengths. Alix shared that throughout his career, introspection—especially through journaling—has been a valuable practice, helping him organize and refine his ideas. Through this process, one can best imitate and assimilate from the best, then innovate on their ideas. Alix also highlighted a powerful approach for standing out in an AI-driven landscape: harness human-AI collaboration rather than relying solely on AI. Machines excel at crunching numbers, but they struggle with the more qualitative aspects of investing—judging management’s character, understanding corporate culture and understanding regime changes. According to Alix, this “hybrid advantage” of combining data analysis with human intuition will produce the most formidable investors in the future. Another key theme was networking. Alix sees networking as an essential, lifelong practice and shared his unusual approach: creating “triads,” or connections between people with complementary strengths, to foster collaboration and broaden one’s perspective. He advised reaching out to potential mentors with genuine curiosity and a readiness to offer value in return, emphasizing that the best networks are built on mutual respect and a shared commitment to growth. In a world where data-driven analysis often takes center stage, Alix’s advice was a refreshing reminder that successful investing is more than algorithms and financial models. It’s a journey of self-discovery, strategic adaptation, and relationship-building, with a constant commitment to both learning and sharing knowledge. His insights left us with an inspiring takeaway: that the smartest investors are those who harness both technology and human insight, finding opportunity at the intersection of data and intuition, and continually building connections that amplify their understanding of the world.

Generation Z Investment Club, VIP

Jo Vial

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What did you learn from Mr. Alix Pasquet?

The session began with a brief introduction to the speaker, Mr. Soo Tan, the President and Portfolio Manager of Discerene Group. Mr. Tan initially studied law before attending business school. Before founding Discerene, he honed his skills at prestigious firms such as Deccan Value Advisors, the Baupost Group, Halcyon Asset Management, and McKinsey & Company.

Mr. Tan started by sharing that he discovered investing during his time in business school. Today’s session, organized by the Z Club, prompted him to express his regret that there wasn’t a Z Club during his own time in business school.

He also provided some background about his family, mentioning that he comes from an academically inclined and science-oriented family, rather than one focused on business or investing.

Mr. Tan graduated as the top student in his law school class, but he chose not to practice law because, while he enjoyed studying it, he found business more interesting than legal practice.

During his time at McKinsey, he learned a great deal about businesses. He witnessed the height of the dot-com bubble and its subsequent bursting, during which many restructurings took place. He recalled how it was a fascinating time to learn through observation.

He mentioned that he first discovered Warren Buffett in his mid-20s through reading Buffett’s investor letters when Buffett visited his campus. He found it incredible that someone could pursue a career in investing. He chose not to return to McKinsey after business school and joined an investment firm instead.

Mr. Tan noted that the mentorship from his professors and learning about Buffett were pivotal moments in his life.

When asked about his investment philosophy, Mr. Tan explained that value investing is logical and makes a lot of sense. He emphasized that, as value investors, we own businesses, not stocks, and our goal is to determine a company's worth and buy it at a discount. He stressed that a company's worth is independent of its market price.

He pointed out that, as value investors, we must strive to figure out a company’s worth, even if we have imperfect tools, skills, and knowledge.

Mr. Tan also spoke about his time at Halcyon, they focused on distressed companies and special situations. He mentioned how his legal background was beneficial in analyzing businesses going through bankruptcies. His experience with distressed credit helped him to focus on downside protection in potential investments, a discipline that continues to serve him well after 20 years.

He reflected that witnessing how companies fail can open one’s eyes and improve one’s ability to analyze companies that are still going concerns.

Mr. Tan emphasized that joining a startup teaches one more about a business as one needs to learn to be resourceful as the startup struggles to survive, and to build a company from the ground up.

He recounted how, during the mid-2000s—when hedge funds were at their peak—the startup he worked for rapidly grew from $300 million to $2 billion in assets within just three years, which felt like experiencing entrepreneurship at high speed.

Mr. Tan explained that investing is more of a probabilistic craft than a science, and as an investor, one must try to stack the odds in one’s favor.

He suggested that the first question one should ask is whether a company has a compelling reason to exist. For example, if the business disappeared overnight, would the world be significantly different? He cited the example of Lululemon products, noting that if they disappeared, the world wouldn’t change much. In contrast, the disappearance of the Suez Canal would have a far greater impact.

He also discussed the concept of long-term investing. In particular, can one buy the common stock of a company and then doesn’t look at it for 10 years predict what the company looks like in 10 years? He believes that no one can predict a company’s earnings in 10 years, but can one at least reasonably predict such company’s business model, customers, products, and services a decade out?

Mr. Tan also advised setting aside companies that may be too difficult to understand, not necessarily because they are bad businesses, but because they fall outside one’s circle of competence. If it’s not something one has the skills to understand, it’s better to move on to the next opportunity.

He then discussed the importance of a business’s barriers to entry, suggesting that we put ourselves in the shoes of someone trying to compete against the business. For example, imagine how would Elon Musk approach it attacking the business? How defensible is such business to an attack? However, he noted that even after doing all the work to reasonably calibrate a business’s barriers to entry, one can still be wrong, as nothing is foolproof in investing.

Regarding Discerene’s investment strategy, Mr. Tan explained that, if nothing’s changed about a company they own, they try to buy more shares as the company’s stock price declines. For example, if a company is worth $100 and they can buy it at $60, they will continue to buy more as the price drops to $50 or $40, as the risk-reward ratio improves with a higher margin of safety.

However, he also emphasized the importance of considering the risk of permanent capital impairment. Their analysis could be wrong, and the company might be worth less than they initially thought. They size their investments accordingly

Mr. Tan mentioned that Discerene has only one portfolio manager—himself. He noted that they don’t trade stocks frequently as other firms do; instead, they buy stocks only when they’re at a discount. Portfolio management at Discerene is more of a process than a distinct role.

In terms of hiring, Mr. Tan explained that they typically recruit people early in their careers. Traits such as grit, hard work, patience, passion for investing, logic, and honesty are highly valued. Skills can be taught, but traits are inherent. He also mentioned that turnover rates at Discerene are very low. The investment team is currently an international group with seven different nationalities, speaking eight different languages.

When asked about the market for distressed credit investment firms in Singapore, Mr. Tan believed that distressed credit is a niche market in Singapore and other Asian countries. Mr. Tan explained that distressed credit investing is specific to each country due to differing legal frameworks across jurisdictions, and that restructuring laws in Asia are not as developed as in the US.

He pointed out that in the US, restructuring is common, whereas in Asia, bankruptcy is often perceived as shameful.

He gave an example from Japan, where after the financial-markets bubble burst, many companies were unwilling or unable to restructure for a long time. He also shared that when he joined Halcyon, he didn’t know much about modeling or, restructuring but learned on the job.

Mr. Tan finds his legal knowledge valuable even today and believes studying law was a good decision.

He learned how to understand the law in the context of how a company operates and reiterated that this understanding is crucial for analyzing companies. He mentioned that his legal background has been helpful in running Discerene, he highlighted that law teaches logical reasoning, a skill that is also beneficial for investing.

Book recommendations for someone new to investing:

• The Intelligent Investor and Security Analysis by Ben Graham

• The Letters of Warren Buffett

• Competitive Strategy by Michael Porter

• The Theory of Industrial Organization by Jean Tirole

• Capital Ideas by Peter Bernstein

• The General Theory of Employment, Interest, and Money by John Maynard Keynes

• Capital Account by Edward Chancellor

• The Most Important Thing by Howard Marks

• Margin of Safety by Seth Klarman

• What I Learned About Investing from Darwin by Pulak Prasad

Mr. Tan also discussed the rise of passive investing over the past 15 years, as indexes have outperformed many active investors. He noted that larger companies have historically underperformed smaller companies due to their size, but unexpectedly, in the last 15 years, larger companies have sometimes been faster-growing.

He highlighted how the tilt towards growth investing, rather than value investing, is influenced by monetary policy and interest rates. This environment encourages people to focus more on growth than on barriers to entry, margins of safety, and downside protection.

Mr. Tan acknowledged that these trends have not favored Discerene, which focuses on active, contrarian value investing on a global scale. However, Discerene has thrived despite these headwinds. He believes that investment trends tend to be cyclical.

He mentioned that growth and passive investing might lose popularity as the growth rates of large companies slow due to the law of large numbers. The reduction in the number of active competitors, especially those pursuing value investing strategies, is also beneficial, as there will be less competition for those left standing. He emphasized the importance of maintaining investment discipline and the willingness to persevere during difficult periods.

During the Q&A session, a student asked about whether good investment ideas are typically time-sensitive. Mr. Tan agreed that this is often the case, noting that many of their best ideas are bought during times of crisis.

Mr. Tan concluded the session with advice to students, encouraging them to think logically, know themselves, and make sound decisions that aren’t necessarily influenced by what others do. He shared that his best decisions have come from doing what he believed was the right thing even when it wasn’t popular.

Generation Z Investment Club, VIP

Arivarasan M

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What did you learn from Mr. Soo Chuen Tan?

本次Academy我们邀请到了会远资产的 Mr. Ray XU 作为嘉宾。

Mr. Ray XU 拥有十多年国内外金融机构从业经验，曾在德意志银行、KKR和高瓴资本()等知名机构担任重要职务，参与过多个重大项目的执行和定价，拥有丰富的一级和二级市场投资经验，并于2023年年中创立了一家具有全球视野的价值投资公司——会远资产。

活动刚开始, Mr. Ray XU 便与在场的各位畅谈了自己的大学岁月和投资历程。他强调，大学时所学习的课程以及培养的兴趣爱好，对他后来的投资决策产生了深远的影响。在线的听众对徐教授的分享产生了强烈的共鸣，并就他们所关心的话题展开了深入的讨论。

在如何选择公司方面，Mr. Ray XU 将筛选公司比作买菜，强调我们要去充分了解公司，从多个维度进行筛选，对公司的一些负面因素进行分级处理。同时，他建议大家随时间扩大能力圈，从投资优质公司到发现内在价值高的公司。

Mr. Ray 提倡我们要辩证看待投资周期和市场现象，指出中国股市近年来波动大，行业估值泡沫导致投资者容易达到目标价后追逐热点。追求即时满足是常态，但建议在有限生命与长期复利间寻找平衡点，根据个人偏好选择投资期限。大家要权衡未来与现在的自我，决定是否愿意牺牲短期利益以换取长远收益。

有学生提问：当我们发现自己能力与想法、志向不匹配时一个怎么办呢？对此，Mr. Ray XU 建议我们去发现和培养兴趣爱好，而不是一蹴而就。他用《哈利波特》中的魁地奇()游戏做比喻，兴趣就像“金色飞贼”，飞来飞去不容易找到，但一旦抓住就可赢得比赛。同时，他也倡导在工作中发现益处，培养自己的兴趣。他提倡专注和长期视角，考虑长远职业发展，寻找特长和创新点，发展优势。

关于大学毕业生要怎么选择第一份工作，Mr. Ray 建议大家根据个人情况和长远规考虑学习机会、平台大小和声誉、个人对工作内容的喜爱程度等因素，对这些进行一个恰当的排序。徐睿老师认为，基础工作虽繁琐但不可避免，是职业成长的起点。对初入职场者，认真对待每份工作是成功的重要一步。挫折也是我们成长和学习的机会，徐老师鼓励将其视为丰富人生经历的财富，并在面试中探讨候选人的性格塑造时刻。

Mr. Ray XU 认为成功的投资者不仅需要聪明才智、任性及终身学习能力。他强调在教育背景外，个人反思与成长、持续刻苦和牺牲是成功必要条件。即使他人学历背景优越，个人刻苦和学习能力才是差异。徐老师提到投资理念、分析方法和个人气质对成为成功投资者至关重要，建议通过阅读、加入优秀机构和寻找导师提升能力。我们可以学习成功人士的方法和体系，通过实践发展个人投资哲学和分析方法。比如阅读巴菲特等大师作品，理解价值创造和财富积累。专业投资管理是高度头部集中的行业，少数顶尖者获巨大成功，大多数人难以脱颖而出。

最后，Mr. Ray 提醒，投资领域充满机会但竞争激烈，挑战大。与日常工不同，投资更依赖洞察力和决策能力，非时间投入。对有志成为专业投资者，认清行业特性，持续提升专业能力和决策智慧至关重要。

Z世代投资俱乐部,

王颖

其他反馈:

你从徐睿老师学到了什么？

It was our honour to hear from Richard Lawrence, the Founder and Executive Chairman of Overlook Investments Group, as he shared insights into his investment philosophy and approach. Established the firm in 1991, Overlook is an independent fund management company managing a concentrated portfolio of public equities across Asia, excluding Japan, with a total investment of US$ 7 billion. Over the past 30 years, Overlook has achieved an impressive annual compound growth rate of over 14% for its investors. Richard also explored the topic of Voluntary Carbon Market, which is discussed in greater detail in his latest book, "Carbon Done Correctly”.

The impacts of climate change are evident, with rising sea levels causing significant challenges, such as the Netherlands being partially submerged for years. While governments struggle to respond and adapt swiftly, the onus falls on individuals and corporations to take decisive action against climate change.

Richard Lawrence exemplifies individual responsibility through his efforts in a rural village in Honduras, where he built 50,000 stoves. The traditional method of cooking with coal produced toxic smoke, adversely affecting the health of women and children. Due to a lack of education, the women had difficulty operating the new stoves, leading to many being abandoned. Dedicating many years of his life to this cause, Richard made several modifications until the stoves were widely adopted, demonstrating his commitment to improving the lives of rural families. This resonates deeply with Gen Z's mission of making a profound and lasting impact through purposeful investments, not only in companies but also in people's lives.

Among the few corporations that have taken a leadership role in combating climate change is Salesforce. Initially, carbon credits were only sold to individuals, but Salesforce's purchase of high-quality carbon credits helped expand the voluntary carbon market to include corporate buyers. Corporations are essential to the success of the voluntary carbon market, which provides a scalable, market-based solution for reducing emissions. Despite facing criticism, the voluntary carbon market aims to redistribute wealth from large multinational corporations in the US to third-world countries for large-scale environmental projects. However, participation from both governments and corporations remains insufficient. Only a few corporations have stepped up to lead and become part of the solution and these are the companies we aim to support through our investments.

Generation Z Investment Club, VIP

Calista CHEW

The session with Mr. Richard H. Lawrence, Jr., Founder and Executive Chairman of Overlook Investments Group, was both informative and insightful. Overlook is an independent fund management company that manages a concentrated portfolio of public equities throughout Asia, excluding Japan, with an impressive US$ 7 billion in investments. Over the past 30 years, Overlook has achieved a remarkable annual compound return of over 14%.

During the first half of the session, Richard discussed about the Voluntary Carbon Market (VCM), focusing on two notable carbon-reducing projects: fuel-efficient cookstoves in rural communities of Honduras and a mangrove-growing initiative in South India. He provided a detailed explanation of how VCM works and how it supports meaningful carbon-reducing projects through carbon credits. He also shared his view on how the carbon market would evolve (e.g. gold standard certification taking less time over the years) and the need for greater transparency and quality within the VCM to unlock its full global potential. With limited knowledge about the VCM market previously, this part of the session provided me with a basic understanding of the current VCM landscape and its challenges. I learned about the carbon-reducing projects, the importance of project selection (to avoid greenwashing), and the potential impact of these projects on local communities and the environment. The subsequent Q&A session also enriched my learning, especially when a participant discussed the potential of blockchain technology to enhance transparency in the VCM. This discussion opened my eyes to the innovative solutions being explored to address transparency issues in carbon markets.

In the latter half of the session, Richard delved into the investment model of Overlook Investment Group. A key takeaway was Overlook’s Pyramid framework, which aims to drive the portfolio to the top of the pyramid and maintain it for periods of 3.5 to 10 years. This strategy struck me as particularly useful for selecting businesses to include in investment portfolios. I learned that a disciplined approach to investment, focusing on superior businesses and maintaining a long-term perspective, is crucial for sustained success. Richard’s explanation of the Pyramid framework highlighted the importance of strategic thinking in portfolio management.

Richard also pointed out the value that investment management can add during bear markets. He offered a different perspective, viewing bear markets as times of significant value creation. He advised investors to prepare for (rather than predict) bear markets, highlighting that new leaders often emerge from such downturns. This perspective has reshaped my view of bear markets, now seeing them as opportunities rather than solely periods of decline. I learned that bear markets can be times of great potential for identifying undervalued assets and that maintaining a proactive and prepared stance can lead to significant gains.

Finally, Richard shared insights on activism in investing, emphasizing the importance of personal relationships. He explained that developing relationships with the "real McCoys" of a company is crucial for companies to listen to the concerns of investors. He emphasized that even individual retail investors can act as active stewards if they are persistent, citing his experience with TSMC’s Morris Chang as an example. He also noted that companies are more likely to engage with investors who demonstrate a long-term commitment. Additionally, he mentioned that the option of divesting should be exercised if companies did not address investors’ concerns. From this, I learned the value of engagement and persistence in activist investing, and the impact that individual investors can have on corporate governance and long-term sustainability.

Overall, the session was an invaluable learning experience, offering practical insights and strategies that I can apply to my own investment approach. The knowledge gained has deepened my understanding of the VCM, reinforced the importance of a disciplined investment strategy, highlighted the potential of bear markets, and underscored the power of activist investing.

Generation Z Investment Club, EIP

Nicholas TAN

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What did you learn from Mr. Richard H. Lawrence, Jr.?

Dennis is a successful investor, but his journey was not one without challenges. Despite these difficulties, Dennis crafted his own story of happiness and significance. Due to the generosity and willingness of so many that offered help to him, he actively pays it forward to the next generation.

Next Gen has been a major benefactor of Dennis' kindness. Beyond donating financially to Next Gen, Dennis invests a lot of time in sharing his life experiences and journey with students from the Z Club. Dennis speaks at online and in-person sharing sessions organized by the club. He also invests time to mentor members on an individual level by guiding them on investment related questions.

Next Gen can only be strong because of generous supporters and professionals like Dennis. Please read on to understand the driving forces behind this man.

Paying It Forward: The Inspirational Journey of Dennis Hong

Dennis Hong, the Founder & CEO of ShawSpring Partners, exemplifies the principle of paying it forward. His journey from modest beginnings to leading a successful investment firm underscores the importance of extending opportunities to others. Under Dennis' leadership, ShawSpring's assets under management has grown substantially since the firm’s inception nearly ten years ago. The firm's focused investment strategy primarily targets high-growth businesses globally. ShawSpring manages capital for prestigious institutions, including universities and high-net-worth individuals, highlighting Dennis' commitment to prudent wealth management.

Dennis grew up in Canada, where his Korean immigrant parents ran a convenience store, thereby imparting in him the values of hard work and perseverance. Despite the challenges at the start, Dennis cherished a fulfilling childhood and nurtured ambitions beyond his hometown. As the first in his family to attend university, his path took a transformative turn at Yale, where he secured an internship at Yale University's Investments Office. He had the privilege to be mentored by the late David Swensen during this pivotal period, laying the foundation for his career in finance.

Following his time at the Yale Endowment, Dennis worked for Matrix Capital and Altimeter Capital researching businesses across the globe. After pursuing an MBA for a year at Harvard Business School, Dennis withdrew to launch ShawSpring, pursuing his long-term entrepreneurial goal.

Throughout his journey, Dennis has emphasized the importance of resilience, mentorship, and seizing opportunities, serving as a beacon of inspiration for individuals from similar backgrounds.

Dennis at a 'Meet the Investor' session with the Z Club in 2023

Founding ShawSpring Partners - A Leap of Faith

Despite a successful first year at Harvard Business School, Dennis decided to leave the program after one year to start ShawSpring Partners. It was a leap of faith, but it was not blind, as Dennis had received an offer from the family investment office of a well-known entrepreneur in Boston.

Thus in 2014, ShawSpring was born. With the family's funding as well as Dennis' own capital, Dennis set out to build a world-class partnership based on four pillars:

1. Seeking exceptional returns

   While acknowledging the economic benefits of growing assets under management, Dennis prioritizes generating great investment returns over building the biggest asset management firm.

2. Compounding

   Dogged incremental constant progress over a very long time frame. - Peter Kaufman

   Dennis firmly believes in the power of compounding, noting that even small pools of capital can grow into significant sums over time.

3. Constant improvement to build a lasting firm

   Dennis aims to provide his team with a fulfilling career environment and wants to add value to company management. He emphasizes the importance of constant improvement over the long term.

4. To be the best partner for his investors

   Dennis believes that maintaining a tight-knit partnership where he is the single point of accountability is critical to success. He values relationships with investors and wants to be directly involved in their lives, even if it limits the firm's size. He believes that maintaining strong relationships and transparent communication with investors is important for weathering downturns and optimizing for long-term returns.

Highs and Lows at ShawSpring Partners

In his career, Dennis has encountered triumphs and setbacks alike. One of his recent memorable highs was when a prominent technology entrepreneur and his family were able to fund the construction of a campus in India that trains and upskills rural villagers for jobs funded through the returns from their investment with ShawSpring. Dennis was deeply satisfied by the direct impact of positive investment returns.

Despite his efforts to manage expectations and explain the nature of long-term investing in a concentrated portfolio, periods of underperformance still occur as no investment is permanently on an upward trajectory. During these moments, Dennis feels like he is letting his investors down. Nevertheless, he emphasizes the importance of resilience and learning from one's mistakes during these challenging times, especially reviewing and addressing one's blind spots.

Dennis at a dinner with the Z Club in 2023

Guiding the Next Generation

Dennis's dedication to nurturing the next generation of investors is multifaceted and deeply rooted in his belief in the power of mentorship and community. There are three pieces of advice he would like to offer to students:

1. Approach the mentors

   Mentors have more experience and have made mistakes. Internalize the mistakes of others so that you do not have to make them yourself. Try to approach every mentor with the goal of adding value to their lives. Just because you are young does not mean that you have nothing to contribute. For example, Ryan Ang, a member of the Z Club, wrote an initial memo on Intuit, providing Dennis insightful commentary on the company. Although Dennis provided suggestions to Ryan on next steps and memo structuring, Dennis also benefitted from the process.

   Before connecting with a potential mentor, make sure to do some background work on them. This allows you to ask targeted, insightful questions tailored to the audience.

2. Utilise resources to hone your investing skill

   Do reps

   i.e. Keep repeating the task to hone your skills until you become proficient.

   There is no shortcut to becoming a great investor. Study businesses, practice financial modelling, write out case studies (like initial memos or stock research reports). The Z Club provides incredible resources for growth, so make the most out of it. With practice, you will get faster and more efficient over time.

   While students may see initial memo writing as extra homework, there is great value in putting thoughts into words. It will train you to become more effective communicators. Writing is an essential part of investing and doing the necessary reps to improve.

3. Place trades

   There is no better teacher than the market. Place trades. Start investing. The Z Club is the perfect place for you to gain real world experience without bearing consequences. Don't let this opportunity go to waste.

Students should work on their communication skills, both in writing and public speaking. Dennis shared his own experience of overcoming shyness and how he learned to make persuasive arguments.

In the Z Club, students should seize opportunities to learn from mentors, peers, and club resources. He suggests that students should put themselves out there, share their work, and volunteer to host sessions that can train their public speaking skills.

Dennis in Yunnan in 2024 with the Next Gen team for the annual Z Club Scholar's Trip to Wang Ying's (Z Club scholar) hometown

Empowering the Next Generation

Because of Dennis' passion for empowering the next generation and his generosity to the Z Club, we invited him to join us for our annual Scholar's Trip to Yunnan in April 2024 where we visited the hometown of Wang Ying, one of the Z Club scholars. You may read more about the trip here.

The trip was certainly "eye-opening" for Dennis. He was struck by the happiness and contentment of Wang Ying's family despite their modest circumstances and shared that the trip taught him that happiness is independent of one's material resources. The team also went on a 9 km hike to experience Wang Ying's weekly journey just to go to middle school. It was a challenging walk, but Dennis also developed a great respect for Wang Ying's resilience in pursuit of education.

When asked why Dennis supports Next Gen so wholeheartedly, he reflected that Next Gen's mission is important and he wished such an organization existed when he was starting out as an investor.

I feel a fundamental obligation to pay it forward to this generation. A lot of people opened doors for me and I feel an obligation to open doors for other people.

Next Gen holds a special place for him because it aligns with his belief in starting one's investor journey early in life, and the importance of a network of peers, mentors, and professionals to help you on that journey.

On Living a Positive Sum Life

At the core of Dennis's philosophy is the belief in living a positive sum life. He understands the importance of kindness, mentorship, and giving back, not only for the benefit of others but also for one's own fulfillment and happiness.

Dennis believes that the best way to repay kindness is by helping others succeed. He encourages young people to offer their time and advice to those who seek it, as a way of paying it forward. He emphasizes that expecting nothing in return is key, as kindness has a way of coming back in unexpected and positive ways.

Being kind is free.

Everyone wants to be surrounded by successful people, but the easiest way to do that is to help make your friends successful.

Dennis Hong's journey is a powerful testament to the transformative power of paying it forward. From his humble beginnings to his professional success, he remains committed to opening doors for others and creating opportunities for the next generation. By opening doors for others, Dennis continues to create a ripple effect of positivity and opportunity that reverberates far beyond his own achievements.

Today, we want to share Soo Chuen's journey because, beyond his accomplishments, Soo Chuen possesses a heart of gold. Discerene supports many scholars from underprivileged backgrounds and provides them with the financial means to pursue higher education. One such scholar, Wang Ying, is a Chinese student from the Z Club. In addition to supporting Wang Ying’s education, Soo Chuen also enjoys spending time sharing his knowledge with Z Club members every year.

Please read on to learn from this remarkable man.

Soo Chuen with his dad and nephew in Singapore

From Science to Law to Investing: A Journey of Discovery

Soo Chuen's childhood in Malaysia was deeply rooted in academics. Both his parents were high-school physics teachers. Despite his early academic focus on science and maths, Soo Chuen had a passion for the law because of the logic of the discipline and his fascination with how a society creates rules governing human behaviour. However, though he excelled at law at Oxford University, he learned while interning at law firms that he was more interested in the underlying businesses of the clients he was working with than the legal issues he was working on with them.

Soo Chuen with Discerene team members at an Amazon fulfilment center tour

When he graduated from Oxford University (where he was top of his law school class), Soo Chuen joined McKinsey & Company, a management consulting firm, in New York City. At McKinsey, he benefited from being a fly on the wall at companies grappling with different strategic and operational challenges across multiple industries. After completing his analyst program at McKinsey, the firm paid for Soo Chuen to pursue his MBA at Harvard Business School.

It was during his time at business school, when he was 25 years old, that Soo Chuen was introduced to value investing. He was especially inspired by Warren Buffett's investment principles and writings. After some reflection, Soo Chuen made the difficult decision to repay McKinsey for his MBA education so that he could freely pursue a career in investing after graduating from Harvard. It was a decision that he has not regretted.

Discerene team members in Omaha for the 2024 Berkshire Hathaway AGM

The Founding of Discerene: A Story of Vision and Grit

In 2010, driven by a 33-year-old’s idealism and a desire to build a long-term enterprise that was the fullest expression of his investment philosophy and values, Soo Chuen launched his own investment firm, Discerene Group.

Discerene’s launch was not an easy undertaking in the wake the global financial crisis, especially because Soo Chuen did not have a standalone investment track record. Soo Chuen was undeterred. He wanted to pursue build a 50-year (or longer) global investment partnership that followed Buffett's principles of long-term value investing. Soo Chuen placed a high value on honesty and integrity, stewardship and partnership-mindedness, intellectual rigor and personal drive in the pursuit of excellence, long-term mindedness, and first-principles-based thinking in pursuit of truth. These core values became fundamental to Discerene's culture.

It's been 14 years since Discerene’s founding, and Soo Chuen remains just as idealistic and committed to the Discerene investment enterprise and culture. In order to achieve its goal of compounding capital generationally, Discerene focuses on building truly long-term relationships with partners, including investors, employees, and portfolio companies. He believes that the foundations upon which he built the firm 14 years ago will continue to sustain it for the next 36 years and beyond. Along the way, Soo Chuen also intends to leave a meaningful legacy of mentoring young professionals and helping them along their respective journeys. He wants to enable folks to make thought-through decisions, find their calling, and be willing to take risks to pursue them, just like he did.

Soo Chuen with the late Charlie Munger

Cultivating a Culture of Giving: The Discerene Scholarship Program

Discerene's scholarship program reflects a commitment to identifying and supporting talented and hardworking individuals from underprivileged backgrounds in various developing countries, including China, India, Pakistan, Myanmar, and (soon) Ghana. The scholarship provides comprehensive support for their university education.

Believing that mentorship and personal connections can be even more important than financial aid for its scholars, the firm also seeks to create a support network for them. To help the firm achieve its giving goals, Discerene actively seeks out opportunities to collaborate with and support organizations that are committed to creating educational opportunities for and nurturing the next generation of leaders, including the Z Club. Through these efforts, Discerene hopes to live out another of its core values, which is to “do good and make a positive difference.”

Soo Chuen's giving goes beyond the superficial. He is genuinely interested in the personal lives of those he mentors. Beyond sponsoring Wang Ying's university studies, Soo Chuen is also investing time to get to know her. For example, a member of his team, Bowen Dai, visited her at the end of 2023, and Soo Chuen will be visiting her in Chengdu this summer. Soo Chuen has also introduced Wang Ying to other Discerene scholars, allowing her to meet peers in countries she would otherwise not have had the opportunity to interact with.

Soo Chuen as a speaker for one of the 'Meet the Investor' sharing sessions with the Z Club

On Gratitude and Giving Back

Soo Chuen encourages students and alumni to embrace an attitude of gratefulness and to give back. Speaking from personal experience, he emphasizes the personal fulfilment that comes from supporting others. Soo Chuen advocates cultivating a habit of giving early in life.

Soo Chuen points out that one often gets back more than one gives. For example, Soo Chuen hired a Z Club alumnus, Alaedine Belhouari, right after he graduated from Columbia University. Read our interview with Alaedine here for more context on how their relationship began. Soo Chuen shares how mentoring Alaedine enriched his own life.

I went to Morocco to visit with Alaedine. His mom, extended family, and friends could not be any more welcoming and gracious. I learned a lot about Moroccan culture, history, society, economics, and hospitality. I made wonderful friends. His mom has come to visit in Connecticut since. Who knew that I would have had all these wonderful experiences, just because I agreed to, at the request of a good friend, spend a few minutes talking to a kid from Morocco who’d won a Z Club stock picking contest?

Soo Chuen points to psychological research that shows that having rewarding personal relationships is important to personal happiness and fulfilment. In addition to cultivating such relationships, Soo Chuen also encourages young folks to find challenging and meaningful goals that they are passionate about, can commit to, and are willing to work hard towards.

Soo Chuen's journey from law to investing and founding his own firm illustrates the transformative power of vision, passion, courage, and perseverance. Through Discerene, he seeks not just financial success from the long-term compounding of capital but also opportunities to make a meaningful difference in the lives of others. His commitment to personal integrity, professional excellence, and giving back to others serves as an inspiration for aspiring investors, social entrepreneurs, and others seeking to make their own distinctive contributions.

In the complex world of finance, individuals like Allen Xiao, stand out for their multifaceted expertise and dedication to driving change. As the Deputy Chief Risk Officer at Amundi Asset Management in the United States, Allen oversees investment risks, compliance, and Environmental, Social, and Governance (ESG) matters for Europe's largest asset management company. However, his journey to this prestigious position is marked by a series of deliberate choices, continuous learning, and a deep commitment to the industry.

Allen sits on the Board of Next Gen Investors Endowment (Next Gen), alongside Gordon Yeo. Hence, today we would like to get to know Allen a little better and share his journey with you.

Education and Passion in ESG Investing

Allen's educational journey began in mainland China, where he underwent rigorous training in business administration at Northwestern Polytechnical University in Xi'an, before venturing to the United States for a Master's in Accounting and Finance at Willamette University. Over time, he furthered his expertise in various domains, including commercial real estate and sustainability, culminating in an Executive MBA from Oxford University in the United Kingdom (fun fact: it was here that Allen met Tiffany, co-founder of Next Gen, and the rest is history).

Initially starting in accounting, Allen gained valuable experience in auditing and financial analysis, gradually transitioning into risk management, where his foundation in accounting proved instrumental in his role as Deputy Chief Risk Officer at Amundi US. His career trajectory reflects a steadfast commitment to continuous growth, driven by his unwavering passion for the investment industry. Emphasizing the importance of deliberate career choices, Allen highlights the significance of selecting both the right function and industry from the outset, a principle that has guided his professional journey. Furthermore, he champions lifelong learning, evidenced by his pursuit of certifications such as the Certified Public Accountant (CPA) and Chartered Financial Analyst (CFA), and encourages others to embrace specialized education to remain at the forefront of an ever-evolving landscape, particularly in areas like ESG investing.

Allen on the Nasdaq screen in New York Times Square

Global Involvement with the CFA Institute

Allen is committed to a couple of roles in the CFA committee as follows:

1. CFA New York Performance and Risk Analytics, Co-Chair - oversees discussions on sustainable risk investment, calibration of different scenarios and analytical-driven performance analysis.

2. CFA Institute (Global) ESG Technical Committee, Member - part of a task force that developed ESG disclosure standards in response to the need for standardized ESG reporting due to differing regulatory agendas globally.

3. CFA UK Climate Investing Panel, Member - blends regulatory development, climate science, and investment knowledge to create balanced portfolios with dual financial and sustainability objectives.

4. CFA China International Advisory Council, Member - represents a global view on emerging markets, focusing particularly on China, and aims to bring relevant investment discussions to the Chinese community.

Despite his diverse roles, Allen sees a common theme in his work related to sustainability, climate investing, and ESG, which he believes are crucial for the future of investment and finance, as they incorporate science-based analysis into the investment processes.

Driver of Sustainability and ESG Investing

At Amundi US, Allen's work is aligned with the company's focus on sustainability and ESG investing. As the company embraces the principles of stakeholder capitalism, Allen plays a crucial role in integrating sustainability into investment strategies, ensuring alignment with global goals such as the Paris Climate Accord. Allen's involvement in various CFA positions has enabled him to engage with high-level individuals globally, fostering understanding and collaboration across borders.

The "Understanding China·GBA (Greater Bay Area) Dialogue" was held in Guangzhou from 18-20 April 2023. This conference, co-initiated by the China Institute for Innovation and Development Strategy, the Chinese People’s Institute of Foreign Affairs, and world-renowned think-tanks, invites globally recognized statesmen, strategists, scholars, business leaders and international organization dignitaries to join their Chinese counterparts in dialogues on China’s domestic and foreign policies. 

Up to 1,000 political, academic, business and media leaders from around the globe attended the Conference under the theme “Chinese Modernization and New Opportunities for the World”, to pool strengths in advancing common development and cooperation, and form greater synergy in building a global community with shared future for mankind based on communities of interests.

Allen as one of the panel speakers for the First China ESG Financial Talent International Forum

For session two, Allen was invited to be a panel speaker on the topic "Modernization of Financial Talent Development and Internationalization - The First China ESG Financial Talent International Forum". Given Allen's unique position as a Chinese who commanded a respectable position in a French company, Allen was a natural guest to be invited to present unique perspectives on ESG from both angles of East and West.

Allen as one of the panel speakers for the Financial Technology Forum - 2024 Investment Data & Analytics Symposium

Recently, Allen was once again invited to be a panel speaker at the Financial Technology Forum - 2024 Investment Data & Analytics Symposium, this time held in Chicago, USA, on 7-8 May 2024. This forum was organised by the Institutional Investor, a leading international business to business publisher, focused primarily on international finance. It publishes premium journalism, newsletters and research. It also runs conferences, seminars and training courses and is a provider of electronic business information through its capital market databases and emerging markets information service.

He presented his views on ESG to a room of senior executives and asset management representatives. It is an understatement to say that Allen is a champion of ESG!

Allen speaking at the Investment Advisory Conference 2024 in Washington DC

Importance of ESG Education

Allen emphasizes the critical importance of ESG education for students in today's world. He highlights the growing concern amongst the younger generation for environmental sustainability and social justice, making it imperative for students to understand these trends for the long term. ESG education enables students to embrace the inevitable convergence of social and environmental factors in investment decisions. Climate investing for example reintroduces "science" into the equation as students now consider the underlying economy instead of looking at investing from a pure capital markets angle. Allen underscores the significance of considering factors beyond financial returns, emphasizing the need to discuss and address issues such as climate change with a focus on the longer term. By integrating ESG principles into education, students develop a broader and more nuanced understanding of the economy, preparing them to navigate complex societal and environmental challenges in their future careers.

Allen practices what he preaches. Beyond speaking at prestigious conferences around the world, Allen does not hesitate to spend hours sharing his knowledge and experiences with students from the Z Club. Allen is a regular speaker at the Z Club's yearly ESG Academy for new members who join the ESG Investing Program. This year, as the Z Club launched the Z Club Academy (a speaker series open to students from the public to attend), Allen also spared no expense in carving out precious time to teach students on various ESG-related topics.

Allen presenting on an ESG topic at the University of Oxford

Support for Next Gen

Who doesn't want to support the next generation of investors?

Support for Next Gen is rooted in Allen's belief in democratizing investor education. He champions Next Gen's mission to make investing knowledge accessible to students from diverse socioeconomic backgrounds and countries, thereby reducing the significant gap in financial literacy amongst the youth. Allen admires the mission of Next Gen, which is to kickstart everyone's investor's journey. One of the hardest things is to move an individual from "0 to 1" (i.e. to generate initial interest in the subject). However, Allen sees that Next Gen is able to do that.

Moreover, he sees Next Gen as a means to address the prevalent fear of money amongst youth. By instilling a positive relationship with finances and investing from an early age, Next Gen not only empowers individuals but also contributes to the betterment of society as a whole.

Final Words to Students

Allen identifies 5 important traits that students should possess:

1. Curiosity: Being curious allows individuals to explore new ideas and be open to new information, which is crucial for growth and development.

2. Humility: It is important to be open-minded and willing to change your mind based on new facts. This humility helps individuals avoid being overly invested in their ideas and allows for greater flexibility in thinking.

3. Intelligence: While intelligence is important, Allen believes it is overrated compared to curiosity and humility. He suggests that being curious and humble can often lead to better outcomes than intelligence alone.

4. Open-mindedness: Changing one's mind can be challenging, especially when emotions and convictions are involved. However, Allen encourages students to overcome this natural tendency and remain open-minded to new ideas and information.

5. Self-reflection: Periodically reexamine yourselves to ensure you still possess curiosity and humility, as these qualities are key to success in learning and investing.

Allen's journey from mainland China to Deputy Chief Risk Officer at Amundi US serves as a testament to the power of perseverance, lifelong learning, and a steadfast commitment to excellence in the finance industry. His story inspires us to embrace change, seize opportunities, and make a positive impact in our chosen fields.

Daniel's passion, determination, and openness to exploring new opportunities are truly inspiring and offer valuable lessons for all of us. Throughout his career, Daniel has been entrusted with a diverse array of roles and responsibilities. Despite the challenges, he has consistently managed to excel and create substantial value for the organizations he has been a part of.

Recently, Daniel shared his insights on Swedish Serial Acquirers in a session that was both captivating and enlightening. His deep understanding of the subject matter was evident, and the session left a lasting impression on everyone in attendance. One of the highlights was Daniel's mental model for analyzing these companies. He outlined four key principles that guide his approach:

1. Discipline when undertaking M&A

2. Focus on Organic Growth and Internal Reinvestment

3. Attention to a Few Simple Financial Metrics

4. Decentralized Organizational Structure

Moreover, Daniel provided a breakdown of how using EBITDA/WC and EBITDA growth can create healthy competition among subsidiaries acquired by the parent company. This method not only drives performance improvements but also fosters a competitive spirit that can lead to greater overall success.

Daniel’s session equipped us with new tools and ideas to apply in our journey as an investor.

Generation Z Investment Club, EIP

Trinsy NEOH

本次Academy我们邀请到了Oceanlink的合伙人和基金经理Steven Shen先生。Steven结合自己求学和入行投资的经历，为听众们带来了一场深入浅出的分享。

首先，Steven跟我们分享了他的投资经历：在中学时他移民加拿大，为了学习英语而大量阅读财经新闻。当时正逢08年经济危机，他发现许多基金管理人都在抛售股票，但巴菲特却在危机期间大举建仓，并在危机后的股市上涨中获利颇丰，这让他意识到价值投资和逆向思维的深刻威力。上大学时，Steven出于对价值投资的兴趣加入了学校的投资俱乐部，并成为俱乐部“价值投资班”的主讲人。为了给课程编写讲义，他在网上开设了一个个人博客，发表了数十篇个股深度研究和投资分析文章。这个“无心插柳”的举措，给Steven带来了很大的收获：他不仅通过俱乐部和博客认识了许多价值投资的知名人士，还通过其中数名人士的推荐，在一家著名的基金找到了毕业后的第一份工作。工作几年后，他同投资俱乐部中的一名校友共同创办了专门投资大中华区股票的Oceanlink，并作为基金经理工作至今。

在提问环节，Steven也跟我们分享了他对股票市场和价值投资的许多深刻见解：例如他认为，中国市场实行价值投资的土壤和欧美有很大的区别：例如国内资本市场不成熟，从业者经历不多，可能要经过几十年的发展，经历许多轮股市周期，把大部分散户都出清，价值投资可能才会成为市场参与者的共识；从文化来看，东亚的文化是“结果导向”的，可能更适合做生意而非做投资，跟其他国家相比，日韩资本市场发展时间远长于中国市场，但价值投资在日韩市场也并非主流。此外，Steven还认为，投资远没有大家想象中容易。当下投资行业相比十多年前已经严重供过于求，能为客户提供长期价值的投资经理相比从业者实在太少。同学们当下如果有志进入投资行业，需要谨慎评估自己的优势，找到能突出自己优势，有效性相对低的市场或细分行业。

Z世代投资俱乐部,

罗煜

其他反馈:

你从Steven老师学到了什么？

Z Club Academy - Sustainable & Climate Investing Trends

The Generation Z Investment Club was honoured to invite Allen Xiao to share about sustainable and climate investing trends during our Z Club Academy session on 15 April 2024 evening. Allen Xiao is the Deputy Chief Risk Officer of Amundi Asset Management in the United States. Amundi is Europe’s largest asset management company. Allen is mainly responsible for investment risks, compliance and ESG Governance, and formulates risk management frameworks in compliance with the regulations of the Securities Regulatory Commission and the Federal Reserve.

Cheng You Gin, our host, set the stage by introducing Allen and sharing about Next Gen Investors Endowment Ltd. The introduction was followed by an Ask-Me-Anything (AMA) session, which provided a platform for attendees to delve into pertinent topics. Here are some highlights from the engaging dialogue:

Driving Forces and Trends in Climate, Sustainability, and ESG

Operational Transparency

Corporations are increasingly recognizing the value of disclosing ESG and sustainability information, not just as a compliance measure but as a strategic imperative. This transparency not only fosters trust among stakeholders but also unveils areas for operational enhancement. By focusing on sustainability and ESG issues, companies can identify opportunities for improvement, driving efficiency and resilience in their operations.

Focus On Market-Based Approaches

A significant trend in tackling carbon emissions involves the adoption of market-based mechanisms such as carbon pricing. Carbon tax and Emission Trading Systems (ETS) are leading examples of this approach. Carbon tax involves setting a price on greenhouse gas emissions, providing a financial incentive for companies to reduce their carbon footprint. The revenue generated can then be reinvested in initiatives to mitigate environmental impact or compensate affected parties. On the other hand, ETS operates through the trading of emission permits, creating a market where companies can buy and sell allowances based on their emission levels. This system encourages emission reductions to occur where they are most cost-effective, driving innovation and efficiency in emissions management.

Divergence Of Focus Across Geographical Regions

Allen offered intriguing insights into the varying emphasis on renewable energy across regions such as APAC, EMEA, and the Americas, highlighting the divergent paths taken by different geographical areas.

He explained this divergence using electric (EVs) and hydrogen-powered vehicles as examples. While electricity remains the mainstream renewable energy option, hydrogen is gaining prominence, particularly in sectors like aviation and maritime where decarbonization poses unique challenges. Allen attributed this regional focus shift to a combination of contemporary geopolitics and regulatory divergence. For instance, China has emerged as a dominant player in EVs, fueled in part by geopolitical tensions and favourable government policies such as EV subsidies. Conversely, Germany and Japan have taken the lead in hydrogen-powered vehicles, driven by their technological expertise and supportive regulatory environments.

From an investor's standpoint, Allen views these divergent focuses as investment opportunities. By understanding the nuanced drivers shaping renewable energy landscapes in different regions, investors can strategically position themselves to capitalize on emerging trends and market dynamics.

Perceived Growing Resistance To ESG Principles Within the USA And Its Implications

Allen shared that the USA is a vast and diverse landscape, with varying attitudes towards ESG principles across different sectors and regions. It is important not to paint the entire country with uniform resistance towards ESG. Allen underscored the potential consequences of resistance to ESG principles, highlighting the risk of diminishing competitiveness on a global scale. As other regions embrace sustainable investing practices, US asset managers risk lagging behind if they fail to adapt. However, Allen expressed optimism about the trajectory of ESG adoption in the United States. He noted that perceived resistance may stem, in part, from the historical lagging of ESG capabilities among US asset managers. Yet, as these professionals build on their expertise and become competitive, the barriers to ESG integration are likely to diminish.

Milestones of standardization of ESG standards

In exploring the milestones of standardizing ESG standards, Allen shared that it would be a global consensus among regulators to promote market transparency. Allen emphasized the critical role of regulators in recognizing the adverse effects of low transparency. By acknowledging the risks associated with insufficient or misleading disclosure of (ESG) information, regulators can drive efforts to establish clear and comprehensive standards that enhance transparency and accountability across industries.

The Q&A session was followed by a short sharing by Allen. Some key takeaways from the session include:

Regulatory Developments

Allen highlighted several key regulatory developments shaping the landscape of sustainable investing. Firstly, there has been a push towards clearer and more stringent labelling of funds across major jurisdictions including the EU, UK, and US, empowering investors with transparent information about the ESG characteristics of their investments. Additionally, the inclusion of nuclear energy and natural gas in the EU Taxonomy also creates greater global alignment in sustainable finance standards. The introduction of the EU's Carbon Border Adjustment Mechanism (C-BAM), imposing charges on embedded carbon content in certain imports like cement and aluminium, has also underscored a commitment to combat carbon leakage and promote carbon pricing consistency globally. Moreover, Allen shared that there has been a surge of support for climate action from governments, corporations, and investors in the wake of the COVID-19 pandemic, demonstrating a collective determination to address environmental challenges and build a more resilient future.

Grid Investment Landscape

Allen describes the evolution of renewable energy investment through three distinct phases. Initially, the focus was on enhancing power generation efficiency, followed by advancements in energy storage technologies, and improvements to power transmission infrastructure. In the current (third) phase, he identified three key bottlenecks in grid investment that present unique investment opportunities. These bottlenecks include physical infrastructure, grid mechanics and services.

Investor Asset Valuation Evolution

Allen introduced the MIT Economic Projection and Policy Analysis (EPPA) Model as a comprehensive tool for asset valuation. While short-term asset valuation often incorporates ESG-related events such as scandals, long-term valuation considers broader risks, including physical and transition risks associated with climate change and sustainability challenges. The EPPA Model integrates key assumptions, such as labour productivity growth, technology costs, energy efficiency improvements, and urbanization trends to project a range of economic variables including GDP, energy use, consumption, as well as greenhouse gas emissions and pollutants from different activities. The EPPA Model thus serves as a vital tool in navigating the evolving landscape of sustainable investing, empowering investors to make informed decisions that align with their financial objectives and ESG priorities.

Sustainable and Climate Investing Examples

In addition, Allen shared with the attendees some examples of sustainable and climate investing in the area of clean energy and water, as shown in the slides below:

Following the short sharing session, Allen also addressed specific queries from attendees.

What is an area to consider/explore for ESG investing?

Allen suggests delving into the fundamentals of carbon emissions measurement. He cited the example of gas and oil, which claimed natural gas is less potent than oil when the time horizon is 100 years. While gas emissions may appear favourable within this timeframe, the imperative of achieving net-zero targets by the 2030s and 2050s necessitates a more nuanced assessment. By challenging prevailing assumptions and scrutinizing the implicit scientific underpinnings, investors can gain deeper insights into the true impact of carbon emissions.

In addition to technological considerations, Allen underscores the importance of geopolitical factors in shaping carbon emission trends. Geopolitics exert a significant influence on emission patterns and investment landscapes. By integrating geopolitical analysis into investment strategies, investors can better anticipate market shifts and identify opportunities arising from geopolitical developments.

Why are stocks of water companies mispriced?

Allen sheds light on the mispricing of stocks in the water sector, attributing it to the unique regulatory landscape governing this essential resource. Water, being a highly regulated commodity due to its critical importance, often sees its market valuation influenced by political considerations. This regulatory oversight can distort the true market value of water stocks, presenting investors with an opportunity to capitalize on the dissonance between perceived and intrinsic value. By recognizing the underlying regulatory dynamics shaping the water industry, investors can navigate this sector with a keen eye for value and capitalize on untapped investment opportunities.

Summary

In summary, Allen's insights offer an in-depth understanding of sustainable and climate trends, the renewable energy market and regulatory dynamics.

The Generation Z Investment Club extends our heartfelt gratitude to Allen for enriching our learning journey with his invaluable expertise. His contributions have undoubtedly inspired us to navigate the complexities of sustainable investing with more confidence and foresight.

Z Club Academy, Generation Z Investment Club

Nicholas TAN

Allen’s sharing was very informative and interactive. During the session, Allen shared about the sustainable and climate investing trends - ranging from regulatory developments to specific developments in various sectors such as Renewables, Utilities and Automobiles (EV). Some of the key trends included ramping up decarbonisation efforts and forward-looking metrics being adopted on the ESG front with greater momentum and commitment. Additionally, he shared that there is greater convergence towards a market-based approach within the sustainability landscape.

It was interesting to hear Allen’s perspective on the multiple benefits that come with reporting scope 1-3 emissions – Emissions reporting not only provides transparency from a climate perspective but also from an operational perspective. Allen shared that although policy divergence may have its cons, it also paves the way for investment opportunities.

I used the session as an opportunity to ask Allen how EU Asset Management (AM) firms can be held accountable for their investments, considering that the EU ESG fund guidelines for articles 6,8,9 funds are not yet approved, and AM firms are downgrading their funds often. Allen shared that with the SFDR being rewritten, there are efforts currently being undertaken by other standards, such as the CFA Global ESG Disclosure Standards for Investment Products, to provide the clarity and methodologies to address the current gap.

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The six EU taxonomy objectives also acted as a reminder that amid the overwhelming focus that is given to decarbonization, we should not forget about the other aspects of sustainability, such as biodiversity and the protection of water resources.

Through the breakout room session, we were able to discuss the potential investment opportunities that lie within the sustainability landscape. Additionally, with regulations playing such a big role in the landscape, it made us reflect on whether sustainable growth can be determined with certainty before deploying capital. Nevertheless, we agreed that it was a necessary step forward to bring about meaningful impact. Overall, the session allowed us to gain a deeper understanding of the opportunities and challenges that we face within this ever-changing landscape.

Generation Z Investment Club, EIP

C M R Sooria

Feedback

What did you learn from Mr. Allen Xiao?

It was such an honour to get to hear from Pulak Prasad for our session titled “Buy a Company You Don’t Need to Sell”. Pulak is the founder of Nalanda Capital, a Singapore-based firm that invests in listed Indian equities and manages about $5 billion. He was previously the co-head of India for Warburg Pincus, a global private equity firm, and also worked at the management consulting firm McKinsey for several years.

Describing Pulak's journey and approach to investing, his perspective offers a breath of fresh air amidst the common narrative surrounding investment strategies. In contrast to the prevailing belief that successful investors thrive on high-risk, high-reward opportunities, Pulak's philosophy underscores the importance of prioritizing risk management above all else.

Pulak advocates for a cautious and discerning approach, emphasizing the significance of avoiding investments with excessive risk or uncertainty. One notable aspect of Pulak's approach is his aversion to companies burdened with significant financial leverage. By avoiding companies heavily reliant on leverage, Pulak mitigates risk exposure and prioritizes the preservation of capital.

Moreover, Pulak's preference for industries characterized by stability and predictability, such as the paint industry, speaks to his pragmatic approach to investing. By focusing on sectors with proven track records and dependable performance metrics, he minimizes uncertainty and enhances the likelihood of sustainable returns.

Overall, Pulak's perspective offers a valuable reminder that success in investing is not necessarily synonymous with taking outsized risks. Instead, it stems from astute risk management, disciplined judgment and adherence to fundamental principles. Let us hear more reflections about Pulak’s sharing from our members who attended the session.

Z Club Academy,

Pearline PANG

Feedback

What did you learn from Mr. Pulak Prasad?

大中华区的第二次Academy请到的嘉宾是林志轩老师。林老师拥有丰富的制造业投资研究经验，曾在麦格理证券（Macquire）和华泰证券担任汽车行业首席分析师，长期覆盖A股、H股汽车相关行业，并连续多年在“机构投资者（Institutional Investor）”分析师评选中取得最佳分析师排名，现在于某大型汽车集团从事金融业务与资产管理相关工作。林老师围绕“财务报表分析”和“行业复盘”两个主题。

在“财务报表分析”部分，林老师讨论了怎样通过企业的公开财报，大致判断一家企业的投资价值。林老师指出，一家公司商业模式的优劣可以粗略用ROE判断，如果ROE越高，证明公司生意模式越好。而ROE又可以分拆为净利润率×资产周转率×权益乘数（也就是杠杆率）三个指标。一家优秀的公司，要么净利率高（茅台），要么资产周转快（Costco）。除此之外，也可以通过经营性净现金流/净利润判断利润的真实性（如果经营现金流远小于净利润，证明企业有一大部分利润并非来自现金流入，利润存在水分）。

在“行业复盘”部分，林老师则以重卡行业作为例子，向我们展示了如何通过行业复盘，认识公司和行业发展的驱动因素，研判未来的发展态势。从商业模式的角度，重型卡车是一个重资产、强周期的行业，销量增速波动很大，看起来并不是一门好生意。然而，重卡行业的集中度很高，国内前五大企业占据了80%以上的市场份额，而且随着卡车质量、品质的提升，排放法规趋严，重卡售价持续上升，单车售价从08年的23万元上升至19年的29万元。对标海外，美国重卡行业的竞争格局、行业需求和国内基本接近，龙头重卡制造商PACCAR在20年时间内股价上涨了16倍，证明从长期维度看，重卡这种强周期行业也能持续创造股东回报。回到国内重卡行业，龙头中国重汽15年到20年股价上涨10倍有余，不仅得益于涨价去库存、棚改政策带来地产超级周期，驱动了重卡新购置需求，也受益于存量卡车更换、治理超载带来单车运力下降、潍柴董事长执掌公司等因素。

在提问环节，林老师也和同学们进行了精彩的交流：例如ROIC和ROE哪个更加适合衡量股东回报；企业账上的超额现金对估值影响是正面还是负面，行业竞争格局的高集中度和什么因素有关等等。总而言之，林老师的分享深入浅出，无论是行业研究资历尚浅的小白，还是有丰富实习经验的同学，都从中收获良多。希望以后有更多机会聆听林老师的分享！

Z世代投资俱乐部,

罗煜

其他反馈:

你从志轩老师学到了什么？

非常荣幸，我们第一期的Academy邀请到了郑立涛先生作为我们嘉宾。郑先生曾任职于经纬创投、钟鼎资本，现从事二级市场投资，主要关注跨境电商、消费和软件TMT领域的投资机会。是播客【乘风破浪】和【消费圈内人】的主理人，公众号【与运气竞争】。

郑老师在开场就提出了一个论点：调研是一个好研究的必要条件，但不是充分条件。要做好调研，大量检索事实信息很重要，但更重要的是对公司做好定性分析。这里他列举了拼多多、TEMU的出海案例、以及自己亲身参与的公司调研经历，揭示了明辨信息真伪/主要矛盾的重要性；强调了获取信息之后的验真环节，毕竟很多周期性行业的公司内部成员自身对于公司的发展前景也抱持不自信的态度。所以，只有经过充分验真，才能最大程度上避免对于获取信息的误判。

接着郑老师抛出了一个问题：调研的诉求是什么？调研之前首先要了解清楚调研的目的是什么？应该找什么渠道去获得自己想要的信息。郑老师列举了几个问题，归纳说明了哪些问题是在调研中会问的，比如产品的链路分布、商铺的资金周转状况……这些问题他会去和商家进行沟通；而对于大环境、大格局，这些相对宏观这些他会避免去聊。这些高度不确定的问题可能只会增加沟通的摩擦，事倍功半。所以在调研之前充分的准备是必不可少的。

随后，郑老师也聊到了一些“草根”调研方法，比如就瑞幸的新品销量来看，他们会选择线下蹲点，去数当日的销量。此外，通过小红书等平台的信息、评论区也是一个不错的调研方法。总而言之，互联网时代利用好互联网渠道，多去进行内容输出，能够帮助我们链接到更多的资源和人。

精彩的分享和问答环节让我们收获了浓缩提炼后的调研精华，非常感谢郑老师不吝赐教，希望以后有更多机会和郑老师合作，为大家带来更多精彩的内容及思想的交流碰撞。

Z世代投资俱乐部,

白永玲

其他反馈:

你从立涛老师学到了什么？

大家好！我是Z Club成员张嘉育Olivia！我感到非常荣幸，能够参加2023年12月16日和17日举办的为期两天的圣狮应用价值投资课程·第二期-上海站。

这个课程是由Brian（郑永明先生）和Ice（彭宗中先生）共同主导，他们保留了哥伦比亚大学商学院价值投资项目的经典框架，并对其进行了创新和实际应用上的改良。课程特别结合了中国市场环境和企业特色，同时融入了他们多年的投资经验。更为重要的是，该课程还邀请了多位资深基金经理作为嘉宾，他们在课堂案例讨论中分享了自己的实践经验和独到见解。

其中，令我最影响深刻的是对竞争优势的分析讲解。

供给侧优势：有竞争力的成本，资源垄断

需求侧优势：客户锁定，习惯，转换成本，搜寻成本

规模经济效益

《竞争优势》这本书中提到“真正持久的竞争优势来自供给侧竞争优势与需求侧竞争优势的相互作用，即规模经济效益与客户锁定的有机结合”，而这一点一直贯彻课程理论部分，并给予了冲扽的案例说明。

估值部分，对传统估值方法及其影响因子做出了解释说明。我们最熟悉的估值方法是自由现金流贴现（DCF）和估值乘数，但是传统估值方法也有其局限性。DCF对于公司的无形资产、品牌等无法考虑带入，例如微软有着大量的无形资产，但是这些都无法加入到DCF估值当中。同时DCF实际应用起来复杂繁琐易出现错误，所以该课程引入了现代价值投资方法。通过估算AV和EPV，进行比较和深层分析，结合了定性与定量，弥补了传统估值方法的小缺陷，含括了资产价值的考量尤其是无形资产。Ice在估值部分的讲解过程中提到“不会有一种完美的估值方法”，所以对于传统估值方法和现代估值方法要灵活运用。

在这两天密集的课程中，我们围绕价值投资的三大核心原则（能力圈、竞争壁垒、安全边际）、现代价值投资分析流程、估值方法以及管理层分析进行了深入探讨。两天的时间，深入研究了四个不同行业的公司案例，包括制造业汽车配件龙头企业、细分消费龙头企业、互联网电商巨头以及周期性行业的重卡龙头企业。通过这些案例，学员们学习了如何将理论应用于企业研究，并利用现代价值投资方法来重新审视企业估值和投资决策。

课程的真正亮点在于它的内容以及学员和嘉宾围绕案例进行的互动和讨论。这两天的学习不仅是对知识的灌输，更是一次深刻的思维碰撞和交流。通过激烈的讨论和互动，不同的观点激发了新的见解。这个过程不仅是知识交流的时刻，也象征着在投资道路上友谊的滋生。

张嘉育

Z 世代投资俱乐部