Reflections on meeting the Investor - Mr Kok Lin Teoh
Our students certainly gained more than just information when they met Mr Kok Lin Teoh
Mr Kok Lin Teoh's sharing was so relatable and engaging that it encouraged all of us present that anyone can begin their investors' journey regardless of their background.
More than one of us were impacted. Let's read on to hear from how some of our students benefitted from the session.
Wei Sheng WONG (VIP 2024)
What makes an investor good at what they do? In a lighthearted session of Meet the Investor with Mr. Teoh Kok Lin of Singular Asset Management, he highlighted three-pointers that would help aspiring investors refine their craft and become more proficient investors.
Firstly, Mr. Teoh stresses the importance of understanding the people behind the numbers. As investing goes beyond making sense of the numbers behind the business, one needs to develop an understanding of the business and its people before deciding to invest in the future of the business. This involves getting to know the management of the business and whether their actions and values are aligned with the interests of the investor. Different investors have differing investing philosophies and temperaments, which makes it vital for these investors to seek out companies that share similar values and beliefs, combined with management that the investors can trust. Beyond investing, it's also a prudent move to build good relationships with other professional investors, financiers, and even staff working in the back offices to have a fruitful career progression.
Secondly, Mr. Teoh advises us to overcome the perceptions that come with conducting our due diligence on companies. One way to address our perceptions would be to determine the right level of portfolio allocation based on our investing philosophies and temperaments, taking care not to make our portfolio too concentrated or too diversified. Another method would be to look into investing in companies and industries that we are familiar with. Investing ideas can be found at your doorstep in the form of Smartphone Manufacturers, Software Developers, or even Consumer Brands. The last method involves talking to people who are involved or working with the business, it could be as simple as a casual conversation with past employees to get an understanding of the workplace culture or even to build your network in the process.
Thirdly, Mr. Teoh believes that the best form of risk management lies in understanding the company very well. At Singular Asset Management, there is framed up the wall a Chinese Idiom ‘Reward comes to those who work hard persistently’. Taking the time and effort to understand the business inside out, reduces the risk that is often associated with uncertainty or unknown aspects of the business. The due diligence of management takes away the elements of uncertainty and gives way to assurance that the management is acting in the best interests of the stakeholders of the business.
In essence, successful Investing is a career that is based on building and maintaining relationships for the long term. Beyond that, it’s vital to maintain an attitude of lifelong learning and mastery of our craft. Regardless of the wax and wane of the markets, or the amount of noise that is created through too much information, a proficient investor can resist the short-term temptations of the market in favor of sustainable and long-term rewards.
Jon Long YIONG (EIP 2024)
Through the session, three takeaways struck out with me; namely, the importance of perseverance, understanding personal traits, and how the financial industry has developed. A keynote that was echoed by Mr Teoh was the importance of grit and hard work, as it was this trait that allowed him to push through and pursue an education all way up to his Masters and gain offers to read a PhD, despite the lack of formal education that his family background had. This same trait would serve him well to date as he credits the importance of constantly learning and being receptive to learning about new businesses, their management, and their unique propositions. Likewise, as a student, acquiring and honing such traits will be essential and having a optimistic view can help myself and others achieve goals which we otherwise might not think to be possible. Mr Teoh also echoed this, citing that even as students, we can reach out to companies; be it the staff, suppliers, or partners to the business, and that such a privilege is not reserved exclusively for professionals. However, it is poignant to note that luck also played a factor in his career, as without great mentors and the right people, his career trajectory would have been altered and he may never have stepped into the fund management industry. Nevertheless, perseverance is essential in preparing oneself for when the wave of opportunity arises.
Personal traits were another keynote that resonated with me, as Mr Teoh highlighted that one of the ingredients to becoming a successful fund manager was picking an investment style that fits with your temperament. For Mr Teoh, this meant focusing on a long-term compounded approach and a select number of companies (15-25), of which he would focus on identifying the management team first before looking at the industries attractiveness, business model and valuations. This suited him as believed in fostering relationships and building trust, where if he could trust management then the rest would fall in place. By understanding where his strength lied, he was able to develop a corresponding investment philosophy; investing in businesses he understands and underpin it with relevant principles; developing a gauge of the business better than most, while screening out sectors that do sit well with his beliefs. Armed with this thorough understanding of his own style, he chooses to narrow down his universe of eligible stocks and focuses on the few that are worthwhile. Paired with the luxury of selecting his clients due to the boutique nature of his fund, he has able to onboard clients who are comfortable with risk taken and are less likely to trigger a run on the fund during downturns, a lesson he learnt from the sudden behavioural change during the Asian Financial Crisis. Likewise, as a young investor, it is crucial that I start developing an appreciation of my traits and identify what suits me best without loosening that conviction due to differences with other people’s beliefs.
Another insightful point was how information has become more abundant in today’s climate, where in the past, often investment decisions were made of rumours or stories due to the lack of the Internet and information asymmetry ran rampant. In this regard, the investing landscape is now crowded out with noise rather than signals, which adds difficulty in discerning out material information. Yet, there are ways to counter this, namely choosing industries or companies you have expertise or have personally interacted with before. After all, some of the best ideas can stem from common sense and user experience. In a similar spirit, this is where the accessibility to information can serve as a boon and by reaching out through the different social media platforms, students like myself can also get to delve deeper and speak to people on the ground to discover insights previously unattainable.
Kok Lin's Investor Journey
Teoh Kok Lin is the founder and Chief Investment Officer of Singular. He has over 35 years of experience in direct fund management and investment banking.
Prior to founding Singular in 2002, Kok Lin worked at institutions such as Citibank, ING Barings, UOB Kay Hian Singapore and HSBC Research Malaysia.
Today, Kok Lin is the Independent Non-Executive Director of Credit Guarantee Corporation Malaysia Berhad (CGC), a subsidiary of Bank Negara Malaysia and Independent Non-Executive Director of Credit Bureau Malaysia and Institute for Capital Market Research Malaysia.
He serves as the General Council Member of the National Chamber of Commerce and Industry of Malaysia (NCCIM); National Council Member cum Chairman of the Environmental, Social, and Governance (ESG) Committee and Advisor to the Digital economy of the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM). He is also Vice Chairman of the Malaysian Association of Asset Managers (MAAM).
He actively engages companies for research and conducts meetings with senior company executives constantly travels across ASEAN and North Asia for research and company visits while managing funds for institutions and high net-worth clients.
He is regularly interviewed for his opinions on investments by news media such as the Edge and Astro News. He is also a frequent public speaker for local and international investment forums.
Kok Lin is a CFA Charter holder and he was the former President of CFA Society Malaysia. He earned a Master of Science in Industrial Administration from Purdue University in USA and a Double Degree in Electrical Engineering and Commerce (Finance).
Other Resources
Singular Asset Management website
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Mr Teoh Kok Lin on Bloomberg, Mar 19, 2010
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