When Stanley was a young professional he spotted his supervisor’s payslip which had gotten caught in the copy machine. Seeing the figure on that slip motivated him to pursue a career in investing. Not only has he had a successful tenure, he has literally written the book on value investing in Asia for foreigners.
Today’s interview gives a primer on what value investing is and how trading in Asia differs from trading in the West. We discuss intrinsic value, margins of safety, how emotions can get in the way, and why foreign investors shouldn’t depend on governance structures or goodwill from company owners.
Stanley has been working his craft for years. His advice is golden for any Western investors looking to enter the Asian markets.
In today’s episode you’ll learn:
- The discovery that inspired Stanley to become an investor
- About value investing
- Why value investing in Asia is more complicated than in the West
- Why value investors get nervous when all their bets are going up
- Stanley’s advice for foreigners who want to invest in Asia
Listen to this episode on iTunes
What was your biggest insight from this week’s episode? Let Jay know in the comments or on Twitter: @jaykimmer.
LINKS FROM TODAY’S EPISODE
- Read the full transcript from Stanley’s interview
- Find Value Invest Asia on Facebook, Instagram, Twitter, and Youtube
- The Motley Fool
- ValueInvestAsia.com
- Value Investing in Asia: The Definitive Guide to Investing in Asia by Stanley Lim
DETAILED SHOW NOTES
- (0:48) Jay’s introduction of Stanley
- (2:02) Stanley’s background
- (4:11) How Stanley became interested in investing
- (7:04) Why Stanley started the ValueInvestAsia blog
- (10:27) Stanley gives a primer on what is value investing
- (16:01) How transparency and corporate governance differs in Asia versus the West
- (21:12) Stanley shares some simple metrics for weeding out bad bets
- (26:08) The Asian countries Stanley choose to invest in
- (29:17) Stanley’s perspective on the Singaporean market
- (32:51) Stanley’s broad view of the markets — especially from a value-investor perspective
- (36:01) A trade Stanley is excited about
- (39:30) Advice for foreigners who want to invest in Asia
- (40:56) About Stanley’s book, Value Investing in Asia
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