Tecity Group Investment Philosophy

In portfolio investing, the Tecity Group views risk more in terms of knowing what one is doing, and in not straying from its core set of investment philosophies and principles in pursuit of quick returns and opportunities, not just in terms of price but price movements and volatilities.

Its investment process, criteria and approach follows a long term, careful and in-depth research, high conviction, and quiet engagement and activism in significant investee companies to create positive outcomes for all stakeholders.

To that end, it seeks to adhere to the philosophies and principles set out by its founder, the late Tan Sri Tan Chin Tuan, as exemplified by the quotations below. In some instances the quotations were said in the context of a bank, when he was Chairman and Managing Director of OCBC. However the underlying philosophies and principles still apply in the way the Tecity Group runs its business.


.General Philosophy

Invest Wisely:
With Money

Investing requires thought, careful selection and patience. Initially, an investment may disappoint. But with time, perseverance, dedication and a willingness to learn from setbacks will come a true understanding of what "investing wisely" means.

Money should be made honestly and applied faithfully to achieve good. It should not be squandered or left to languish, bearing in mind what happened to the man in the story who buried his talents.

Hence, the Tecity Group of investment companies works to "invest wisely its money" to achieve consistently satisfactory returns. We do this by careful selection of investments, whilst abiding by the rules of the market and community we live in.

In Time

Time and tide waits for no man, especially in today’s compressed world of accelerated change. We must make each day meaningful. Work is important as we strive to make a difference. But family, friends and loved ones are equally, if not more, important. We must strive to "invest wisely our time" with them.

In People

1. Outside the Organisation
The Tan Chin Tuan Foundation receives donations from various companies in the Tecity Group annually. The foundation is duty-bound to re-channel the money in the same way the Tecity Group invests it-- wisely and well, to those who will help change society.

Recipients are selected using the same principles we apply when selecting stocks. We want the money to be well-managed and targeted effectively. Ideally, each gift should help the largest number of people, or make as much long-term social impact as possible. The yield in good should be high.

2. People within the Organisation
The Tecity Group invests heavily in its staff through training and continual education so that they will find fulfilment and empowerment in keeping abreast of the vast amount of knowledge that our web-enabled Age has unleashed.

In Self

Even as we focus on growing our businesses and relationships, we must remember to nurture ourselves as individuals, so that we continue to grow in character and wisdom.

The best lessons come from Life’s experiences. In success, we must be humble and still eager to learn and experiment; in setbacks, we must remain resilient and unafraid. To know and practise these tenets are the valued returns that come from investing in self, wisely.

.Risks, Returns, and Markets

"Save safely, sleep soundly"

"Reliability, stability and prudence."

"It is better to miss out on a profit than to incur the loss of capital, never swim against the tide of the market."

"Like a sensible motorist, I prefer to drive at a speed which I consider the optimum. It is unwise to accelerate merely because of the fear of being overtaken."

"The important thing is to reach one’s destination safely."

"I believe my contribution to all these companies is the promotion of their sure and steady growth. For instance, when it is cloudy and threatening, I would counsel fishing nearer the shore, until the sky is clear and blue. I would also urge watching the economic tides and taking advantage of their fluctuations instead of plunging in impatiently."

.Investment Criteria, Selection and Time Horizon

"I choose companies which I believe are scrupulous and buy their shares."

"I did not go into private business, either in partnership or with private companies (in conflict or competition). The only thing I did was to buy shares in public companies. Then I worked to make companies successful."

"Life is a marathon, not a sprint."

.Corporate Governance, Activity and Activism

"As for the public companies, I don’t take advantage of the listing. The objective is to earn money for the shareholders."

"Making money is one thing, but making it scrupulously and honestly is the most important."

"Greed is a prelude to downfall. To be successful, you should give before you take."

"Fight for right, fear not might."

"If I think I am right, I will fight."

.Investment Process and Discipline

"I know we can never achieve perfection. But we can keep aiming for it, and in the process, we will improve."

"I don’t know what are my winning qualities. All I know is that in any endeavour, I muster my energy, I bring a sharp eye and inject a strong does of commonsense into it."

"I look on all assignments, including business, as a game, to be taken seriously but at the same time to be enjoyed. I put all my energies, my heart and soul, into the game."

"Just as sportsmen endeavour to perfect their skill, in all my various businesses, I constantly marshall all my energy to improve my prowess in each 'game' I read books on the subject, think and plan how to excel."

.People, Personal and Business/Management Principles

"Forbear, forgive and forget."

"After the Japanese war, one of the first things I set out to do was to get and retain, as far as possible, the best people. This remains my policy. In any organization people come first."

"I get a lot of satisfaction helping people. If you do things for people, these deeds they will not forget."

"I aim to win the confidence of customers and treat them as if they were part of the Bank. I went out of my way to help customers whenever necessary, and secured their confidence."

"If you want to lay down a policy, you must set yourself as an example."

.External Stakeholders and Customers

"Some companies offer prizes to attract customers. But other companies can also give away prizes, and if they do offer more attractive ones, customers will flock to them instead. I believe earning customers' goodwill is better it lasts."

"We lend with the sole expectation of being repaid and we would rather not resort to foreclosure. If a customer defaults and we are compelled to sell his security, my directors and my officers would refrain from buying them, even at a public auction."

"Merely saying that the bank is solid as a rock does not make it solid; we strive to make it solid. For example, we pay slightly lower rate of interest than most of our competitors on deposits with us and consequently are able to lend at a lower rate of interest to more selective borrower and hopefully, reduce our risk of bad debts."