Prospective viewpoints


Prospective viewpoints
Investment Team of Pheim Asset Management Sdn Bhd- 2014.

Insisting on investment philosophy, turning the tide of crisis

For the past 38 years, Tan Chong Koay has been practising value investing based on his unique and innovative investment philosophy which is “never fully invest at all time”. Based on this philosophy, Tan lived through the Black Monday of 1987, the Asian Financial Crisis in 1997 and 1998, the Tech Stock Bubble in 2000, the “US 911 Attack” in 2001, SARS in 2003 and the global financial crisis in 2007 and 2008. Among them, the global financial crisis in 2008, due to subprime crisis, still fresh in our memory. During this period, the amount of assets managed by most competitors sharply declined by 45-60 percent, while the amount of assets managed by Pheim only declined by 16 percent, a rarely seen phenomenon in the same industry. Tan showed his demeanor as a leader, averted the worst, headed off the danger, came through several market crash periods and became one of the strongest performers in Asia.

According to Tan, everyone knows there are ups and downs in the stock market, but few people can treat loss imperturbably. Most people change their mood with the ups and downs of the stock market, so they lose rational judgment. Rational judgment is not the same as “the most accurate judgment” as people can’t grasp the most accurate opportunities. In fact, in terms of long-term investments, accuracy is not necessary. In general, for the long term, all you need is foresight and early actions to perform well.

People shouldn’t be too happy when their stock rises as there may be a crisis; also, people shouldn’t be too sad if their stock is falling as it may be a chance to make a difference. People are depressed by stocks falling and tend to ignore an important fact: inferior stocks fall but so do the superior ones, but they have qualitative difference. Rational analysis and judgment are exactly what you need to have superior stock pick at this time.

A superior stock must be equally matched in quality and quantity, according to Tan. Quantity refers to assets and liability levels, revenue impetus and fundamental data; while quality depends on enterprise management, transparency and a supervision system. Tan hopes to share this experience.

Focusing on social responsibility, sharing the experience of success

Tan once said: “Achievement manifests traits but value shapes models”. He hopes more youngsters will venture into asset management and he is willing to teach and share his 38-year asset management experience to related professionals without reservation.

Tan entered into the industry starting from writing investment-related articles for Kuala Lumpur Stock Exchange/Bursa Malaysia Magazine and other business magazines since he graduated from college. During this period, he was appointed as an External Examiner for MBA programme at the University of Malaysia, as a Member of Board of Studies at the Mara Institute of Technology, mainly in charge of designing an investment analysis course for a 3-year system diploma and as a Chief Examiner for an investment paper at the Institute of Bankers in Malaysia for 10 years. Tan expressed, “I take passing on my work values as my responsibility to society and industry”. Since 2004, Pheim has been the sponsor of the Best Potential Entrepreneur for the Inti College Malaysia. Pheim has also cooperated with a local educational institution to provide practice opportunities for graduates in related majors. Tan said, “Skills can be taught, but intuition is closely bound up with experience, so the words and deeds of an advisor are especially important”.

An entrepreneur should take part in more social activities and focus on social responsibility in addition to simply caring about his own business. In Singapore, Tan served as a Committee Representative on the Executive Committee of Investment Management Association of Singapore (IMAS) from 2004- 2009. Tan has been a Member of the Investment Advisory Committee of the Lee Kuan Yew Fund since 2003. In addition, Tan has been a Member of the Investment Advisory Committee of the Lee Kuan Yew Fund for Bilingualism Ltd since May 2012. . According to Tan, an entrepreneur should contribute to society. He still demands of himself that he takes part in activities that will contribute more to society.


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