An Interview With Gordon Yeo: Navigating Investments, Leadership, and Life's Lessons
In a candid and insightful conversation between Shinya and Gordon Yeo, the co-CEO of Arisaig Partners, Gordon shares the remarkable journey of his life.
Shinya Deguchi (SD) recently met Gordon Yeo (GY), the co-CEO of Arisaig Partners (Asia) in Singapore for a chat. They have known each other for over 10 years, and Gordon and Arisaig Partners have been a strong supporter of the Next Gen Investors Endowment (Next Gen). Beyond sitting on the Board of Next Gen, Arisaig Partners is one of the donors of the organisation, and Gordon and the Arisaig team also dedicate hours into training and equipping our students in investing skillset and knowledge.
Shinya sat Gordon down to find out more about his investing journey.
Gordon joined Arisaig in 2012 and has focused on Asian companies throughout his time at Arisaig Partners. He was mentored by Lindsay Cooper (Founder) for two years, prior to taking over the leadership of the research process in 2017. For his undergraduate degree, he studied Sociology and Strategic Management at Singapore Management University (SMU). He has since obtained his Chartered Financial Analyst (CFA) certification. Gordon also completed a Masters of Information Technology and played an integral part in incorporating data analytics into Arisaig’s research process.
Childhood and Family Background
Gordon Yeo was born in Kluang, Johor, a small town in Malaysia, and spent his early years in a village near Mersing route. His grandmother ran a Chinese restaurant along the route, where Yeo grew up playing with ducks and chickens. Yeo's unique family history, with his mother working in Singapore from the age of 13 to support her large family, added a layer of complexity to his childhood.
Yeo's parents, from different backgrounds, met while working as salespeople in Singapore. His mother's journey from a maid to a salesperson was a testament to her resilience and determination. However, the family faced challenges during the 1997-1998 financial crisis, leading to job loss, debt, and the sale of their house. Yeo's father, attempting to recover losses, ventured into stock investing, a decision that would significantly impact Yeo's perspective on finance.
Impact of Stock Market Crisis on Yeo's Life
The family's foray into stock investing during the tumultuous period of 1997-1998 resulted in financial setbacks and debts. Yeo's father struggled to find employment, and the family faced separation, with Yeo living with a nanny in Singapore while his mother and sister were in Malaysia. Yeo's exposure to the harsh realities of financial instability at a young age shaped his early views on investing.
Eventually, through a letter from a minister, Yeo's mother obtained permanent residency (PR) in Singapore. The family reunited, and Yeo's mother, now a property agent, played a pivotal role in stabilizing their lives. Overcoming adversities, they secured a Housing Development Board (HDB) flat, marking a turning point in their journey towards a better life.
SD: Are there any books you read that impacted your life?
GY: Funny enough, I read ‘Rich Dad, Poor Dad’.
SD: How old were you when you read it?
GY: 18.
SD: I read the book at the same time and it was introduced by my Singaporean friend.
GY: It was just a book that everyone seemed to be reading.
SD: We met Robert Kiyosaki. It was 1999, early days of his book career and the book was so interesting. That book influenced my life as well.
GY: I had an uncle, my mom’s youngest brother.
SD: He was the rich dad for you?
GY: Yes, from a wisdom point of view. My uncle was like a son to my mom, she funded his entire education. He was interesting, didn’t go to formal school but is now a PHD holder in tax planning and lawyer and everything. He knew I flunked my A Levels and said why don’t I take the Association of Chartered Certified Accountants (ACCA). So I took it during NS as I wasn’t sure if I would get into university.
Education, Adulthood and Entry into Arisaig
Yeo's education, initially in Malaysia, continued in Singapore, where he discovered his passion for the arts, history, and social sciences. Despite facing academic challenges during his A Levels, he pursued social sciences at Singapore Management University (SMU) after completing National Service. This marked the beginning of Yeo's adulthood.
"I didn’t have the ambition to be the next Buffet, even till now."
Yeo's entry into the investment world began with internships and a pivotal experience at Duxton Asset Management. Despite facing initial rejection from other firms, Yeo found an opportunity with Arisaig Partners in 2011, where he initially knew little about the company's investment strategy. Yeo's decision to join Arisaig over Citibank was driven by timing and the unique opportunity presented.
SD: What did you think of Arisaig’s investment strategy?
GY: Weird.
SD: You didn’t believe when you joined?
GY: No. You can’t believe, it goes against all Finance 101 knowledge, that you would buy and hold.
SD: When I met Lindsay for the first time, I was based in Hong Kong and came to Asia. My mission was to find investment managers but focused on hedge funds. I contacted Arisaig through the website and Lindsay showed up. I found it interesting and asked what companies they short. They don’t. I didn’t initially understand the real meaning of valuation agnostic approach. Is it even investing? He said they don’t sell, just buy and hold and wait. There were 15-20 companies, some are in the portfolio for 10-15 years. Why do I have to invest in you? But the more I thought of the strategy, I thought it was simple, but I cannot do it by myself.
The conversation delves into Arisaig's unconventional investment approach, characterized by a value-agnostic, buy-and-hold strategy. The emphasis on in-depth research, governance, and ESG factors sets Arisaig apart, with Yeo highlighting the importance of engagement with management teams.
As Yeo transitioned from the youngest analyst to co-CEO, the discussion turns to the challenges of leadership and succession planning. Yeo reflects on the legacy inherited from Arisaig's co-founders – a commitment to rigorous thinking and a willingness to be different. The new leader aims to redefine Arisaig's identity, ensuring it remains both recognizable and relevant in the evolving landscape.
Life Lessons and Personal Growth
Yeo shares personal growth insights, acknowledging the continuous learning curve and the unpredictability of life. With reflections on family, contentment, and the importance of clarity in goals, Yeo articulates a desire for a legacy that extends beyond managing assets – one that inspires and touches lives.
Gordon Yeo's journey, as articulated in this conversation, encapsulates the complexities of life, career, and leadership. From childhood challenges to navigating the intricate world of investments, Yeo's story offers lessons in resilience, learning, and the pursuit of a meaningful legacy. As co-CEO of Arisaig Partners, Yeo's vision for the future reflects a commitment to redefining the firm's identity while staying true to its core principles.
Why are you (and Arisaig) such a strong supporter of Next Gen Investors Endowment?
“I support the Next Gen project as its cause resonated with me. To be able to inspire the next generation on sustainable long term investing, I believe is a worthy endeavour. Not all of them will become professional investors, but that’s even more important as this is not just for a future career. Long term investing, particularly those integrating ESG, should be a skill set for everyone.”
Gordon concludes the chat with final words of encouragement.
We hope to find more like-minded partners like him and Arisaig Partners. If you are keen to partner with us to support this meaningful cause, please reach out to us at persis@genzgroup.org.
Let’s keep sowing into the next generation together!