After almost 30 years of corporate life in asset management, private equity, and wealth management, I now focus on the two things that I am passionate about: investing and golfing.
In my last job, I built an asset management business from a team of one to a team of 26, with over US$10 billion in assets under management (AUM) at its peak (started at ~$500 million, resulting in organic CAGR of over 25%), which was undoubtedly a highlight of my career.
This is a journal where I share my investing journey with you. I welcome your questions and challenges regarding my views, as they will keep me honest and rational. Undoubtedly, I will be wrong from time to time, and hopefully, you can help prevent me from making significant investment mistakes. Along the way, let's hope that we can make some money in the markets together.
I am an investor, not a trader. I have no interest in buying and selling within a year (to avoid the high US short-term capital gains tax, which can be as much as 40% of the gain since I live in CA!). Moreover, some of the best gains in my investing history have come from stocks that I held for over five or even ten years, allowing them to compound my wealth at a double-digit rate. While I do invest tactically, my time horizon for these trades is still over one year. Given my investing and career history, I only focus on two markets: the US and China/HK, the top two capital markets in the world. If I can't find anything worth buying there, then I prefer not to buy anything at all.
The two passions of my life share many similarities: this is what GPT-4 said about them. If you like golf, you should enjoy investing, and vice versa. I hope you enjoy my journal as well.
From GPT-4: “Golf and investing share several similarities:
Strategy and Planning: Both golf and investing require careful strategy and planning. In golf, players need to assess the course, evaluate the conditions, and decide on the best approach for each shot. Similarly, in investing, individuals must develop a well-thought-out plan, considering their goals, risk tolerance, and market conditions.
Patience and Discipline: Both golf and investing demand patience and discipline. In golf, players need to wait for the right moment to take a shot and must remain focused throughout the game. Similarly, successful investing requires patience to weather market fluctuations and discipline to stick to a long-term investment strategy without succumbing to emotional impulses.
Risk and Reward: Both golf and investing involve an element of risk and reward. In golf, players must weigh the risks associated with difficult shots against the potential reward of achieving their desired outcome. Similarly, investing involves assessing the risks of different investment opportunities and balancing them against the potential rewards and returns.
Continuous Learning and Improvement: Both golf and investing require continuous learning and improvement. In golf, players strive to refine their techniques, learn from their mistakes, and adapt to different course conditions. Likewise, in investing, individuals need to stay informed about market trends, analyze past performance, and learn from their investment decisions to make better choices in the future.
Long-Term Perspective: Both golf and investing emphasize the importance of a long-term perspective. In golf, players aim to consistently improve their skills over time, knowing that progress may come gradually. Similarly, investing is often a long-term endeavor, with the understanding that achieving financial goals may require patience and the ability to ride out short-term market fluctuations.
While golf and investing are distinct activities, they share these common elements, emphasizing the need for strategy, patience, discipline, risk management, continuous learning, and a long-term perspective.”
These journals reflect my views as of the date indicated, and these views are subject to change without notice. Please acknowledge that I have no obligation to update the information contained herein. Additionally, past investment performance is not necessarily indicative of future results. And you should aware that any potential for profit also comes with the possibility of loss. I am sharing these journals solely for educational purposes and not for any other use. The information contained herein should not be considered as an offering of advisory services or an invitation to buy or sell any securities or related financial instruments in any jurisdiction. Certain economic trend and performance information included in this memorandum is based on or derived from independent third-party sources. While I believe the sources are reliable, please be aware that I cannot guarantee the accuracy of such information and have not independently verified its accuracy, completeness, or the underlying assumptions.
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