sublication: Lianhe Zaobao, p 22late: 9 August 2010deadline: The "Lion Entrepreneurs" who manage SingaporeScroll down for translationLVBiBEB *l#"5H2 EO# (Warren 2R1BR%R$ollfijdiJhB(1If L h M m f~ E l M .% b 9 fSCYm$&?d?#-, Bm&1965$. "I*"0X=, m+SgR+AR%%km&%o ih3Z@%&%Z;PMr,B S f H45*ZE#R4340%, 91%+8C11470ZLSZ0 Rh#M-+#hlJ€&B-PI4EPSRA+PhElA, Slh~PltPi2.&1800C5€E0WJtll3VBRfSt?L 6Zh&9EZlS+N*RH!#@lW4AJ%BRb!l"%A&"( Float 1 , %$It ! m ~ s s t m + m + i f ~ ~ ~ & ~ t s * :%no#$tRBB&q ( GIC 1 @S+iS@BffioEWJB*811t$%W6%&%%0a=,n*aRrnajizrmssh, # t o w! ~ N I ~ ~ ~ B A W B % ~ % & ~ & B ~ @ . ~ E & ~#BXFltWA#I.t.QI+9#4A, TE#%S86+RtMAb9##i0 E~?ff3!4~3LW~j;BtlB*Ef4$o.I+% E O % & k @ @ B i k#% ( Charles T.Munger 1 , BE##8S&I2010$-*~,SBR)i6EE* # B a t *81itA#BrJ&!mn0 863&BBh!QiF#E%,863&*BaEf 4Em%%Hhn,%El8 Pf-PQ#iBTfllBpi6R, ~ ~ I % k f&BtltJI ,dP@-fESS&MEl;bt, " f&.%lSHA"BEBtwX;r S$O##b 0#es,rn9etl#d-kgs#lFxWE@&oREeoE#I+93Si#Aii3@%#Bgcl33,%E%?%R%etliP28hJt,sfi6R+SRa.t%b9.M.CBtffi$=$0 EQ?+I: *t~@%ift~RBCB~ffiRO isitaa3?7%#%i%O fmttl7tESLNtby tfhiBH2So M t , %3@B11g, ilP@XQ%@+EfiLH$:9kP4%flb%BonFR , EV#%&2008~~Ztt:Z&9.9%~Rff),M? +ElWSHWBShbX&fiIPIf:B, Rthb4g%BXiPBj;Btl2&320075SE,a78EWL0%a%.ss~e;rSH,%%*&Fa, n2at3ma%FrMl#$rWBB/L!4,45ESQ "%$O#lncn KI*saaw+. *tneia, %a,E % ~ + A ~ ERS&*, Rfi7Wifnllir%ll#ftnA5Fo*amBiRlt@Sfd,Ifl&RiiEl&ljr, WMF!%EAmRQo Amt3J&SEk#E%Bcl&%#WSfE3&inssmiltetamm,# w r t W%5, B%@B31+-s*mItOIW53#IA*&@A** 0fiBBB139&rt, 83%31#BBTf3 A 3&9@" ( Lion Entrepreneur1 , ?lB@~SlJ#@#. EZe(lK##, I#!!t3@i&*Sf & - f TMSt~R?IktNBbA,i f i "W&LfZZ ( HyenaEntrepreneur 1 S#QW6-;llitfN*t@%&, 132B&itilHFIT+?5, @S 1 7 & & W m #tL,~tnixsa*esttmnsomtwtal~~%~~t%BHRAa%oBAIiBIH%t%-AkfB3#@%HQQo%#tils&a#Sj;BtlaRa$f, Ern%BtZT#*o 3#lf*mH, Btfltil%J$SH%%#TOB%AR8SiPW, BiktCt#l#m#%#aBI31MIlk, P#@aBSBZB3%B%aS@E81H3%Tit o a 3 8 l i V l t E , &a##*-&#at!k*So 3136SBfRL, %3ERH4P#aBIR1mltsf;IIE%agbasrtw%oA B W ~ ~ ~ ~ ~ B H FR , fiBt%.kT44~iiiFJiXXio R F N B ~ ~ I % ~ T ~Btfl&E3BmBEEMA#BmoM-#tgl*t, 28*%~BtlBmdteA3,RR#@aFuaF&9k%m, iliWJ@RBa%*T. BT@J#.~ ! i ! ~ ~ H ~ ! l k W ~ E l l % ~@BB&a*o MB+&Sf*, RETRB&?§83 ( Sigma S#ZT;Hffi$$!standard deviation 1*i%*ms$J&B%to aiEtNFtk2. aNk=JaSource: Lianhe Zaobao O Singapore Press Holdings Limited. Permission requiredfor reproduction.
Publication: Lianhe Zaobao, p 22Date: 9 August 2010Headline: The "Lion Entrepreneurs" who manage SingaporeTranslation:What do Berkshire Hathaway - the US$180 billion insurance, industrial and consumer conglomeratethat billionaire Warren Buffettskillfully crafted - and Singapore have in common?Both are "listed" in the same year - in 1965.Both are "multibaggers" in the breathtakingsense. Berkshire compounded its net book value by4,340-fold over the last 45 years to US$147 billion. Singapore grew from a small fishing village toaround US$180 billion in GDP, and its GDP (PPP) per capita is rankedfourth in the world by theInternationalMonetary Fund (IMF).With the "float" provided by its foreign currency reserves, high savings rate, and fiscal prudence,Singapores competitive economic dynamo is augmented by two of the biggest sovereignwealthfunds in the world, GIC and Temasek, to allocate its capital over the long-term. According to SWFInstitute, GIC, established in 1981, manages an estimated US$250 billion in long-term assets, whileTemasek, established in 1974, governs a US$120 billion portfolio of companies.Both havevisionary founders who bring important experiences and make critical choices early in thefirms or countrys history that leave a lasting organizational imprint. Buffett is the capital allocationgenius and investor-extraordinaireat Berkshire; Lee KuanYew is credited by Charlie Munger, theVice-Chairman of Berkshireand billionaire partner of Buffett, at the recent Wesco 2010 AnnualMeeting, as the "GeorgeWashington of Singapore" who chose to "marry the smartest girl in hisclass".Munger added that Lee KuanYew is a "very practical man"who "tuned a country with no resourcesor agriculture into a prosperouscountry, starting from zero miles per hour". In his usual pragmaticadvice, Munger said that his countrymen"need to pay more attention to the Singapore model."Also, both Berkshireand Singapore took off from a winning combinationof teamwork.Mungers contributionwas to nudge Buffetttowards "the direction of notjust paying for bargains", aswas taught to Buffett by Ben Graham. Buffettwent on to add: "It took a powerfulforce to move meon from Grahams limiting view. It was the power of Charlies mind. Boy, if I had listened only to Ben,would I ever be a lot poorer; I became very interested in buying a wonderful business at a moderateprice."Singapore had the winning team of Lee KuanYew as the political visionary, Goh Keng Swee as theeconomic and financial architect, and Hon Sui Sen as the builder and administrator par excellence.The Ministry of Finance, Monetary Authority of Singapore (MAS), Economic Development Board(EDB), Temasek and GIC that Singapore has today were the creations of the entrepreneursof Sin-gapore Inc.The central tenet of value investing is really about finding and investing in the Lion entrepreneurs,the team of peoplewith the character to make things happen and with a long-termvision to buildtheir business models into a durable legacy.Source: Lianhe Zaobao O Singapore Press Holdings Limited. Permission requiredfor reproduction.
Publication: Lianhe Zaobao, p 22Date: 9 August 2010Headline: The "Lion Entrepreneurs" who manage SingaporeLions can be compared with Hyenas, who, although also possess entrepreneurial characteristicsand survival skills to win in the stern strife of actual life, are short-term thinkers with a trading mental-ity.Hyenas are the mostformidable African predators, with jaws which are the most powerful in propor-tion to the body size of any mammal. These opportunistic killing machines are capable of runningdown and killing unaided a bull wildebeest three times its own weight, targeting the weak, injured,diseased, old and very young, and also stealing from the kills of other predators.When chance and fortune present easy kills, Hyenas hunt in packs; following which, the pack thendisbands and the Hyena is back to working on its own in the dark to scavenge for carcasses andquick gains.Yet, the Hyenas immense respectfor the Lion is unmistakable.The Lion is also the only naturalpredatorof the Hyena. Of all predators, the Lion is truly the king. Their regal mane and authority,their bond with each other, their speed and prowess, and of course their knowledge- knowledge ofall animals and their habitat- is incredible.The best way to preserve and grow capital in the long run is to identify honest, hardworkingand far-sighted Lion entrepreneurs in whom to invest. Value investing is really about looking for this winningteam combination.Risk, in this sense, is therefore clearly not sigma or standard deviation. In other words, measures ofvolatility of returns.Risk is about the wrong judgment of the intrinsic value of the business, resulting in the possibility ofabsolute capital losses. Risk is about owning a businesswhose entrepreneurand manager are moreinterested in enriching themselvesthan building their company.But risk is definitely reducedtremendouslywhen investmentsin true Lions are made.Lion entrepreneursare alert to existing paradigmsof how things ought to function and behave in themarketplace. It is this alertness that lead to their discovery through their strong conviction and beliefthat they can do it significantly better.And if the Lions sacrifice and persevere in doing this wellenough, they will soon have a country or businesswhich can survive the vicissitudes of commerciallife, booms and busts, mania and panics.Only then can the country or business begin to have a life on its own. That is what is called "goingconcern", in accountingterms, so that the numbers make sense, and a "PE" (price earnings ratio)can be applied to value the business meaningfully. But this is not enough. The next generation ofLions is needed to bring the country or businessto the next level of success.Value investing has to be augmented by a qualitative assessment of how people, ideas, experi-ences, and structures come together to create a firm or country. Understandingthe teams that cometogether and develop over time, and the Lion Infrastructurethey build, is essential to understandingthe sustainable performanceof any country or business.Source: Lianhe Zaobao O Singapore Press Holdings Limited. Permission requiredfor reproduction.
sublication: Lianhe Zaobao, p 22late: 9 August 2010deadline: The "Lion Entrepreneurs" who manage SingaporeAnd we think finding and investing in Lions in Asia is all the more fascinating in this Lion City - Sin-gapore.Source: Lianhe Zaobao O Singapore Press Holdings Limited. Permission requiredfor reproduction.