Distilled wisdom from a sovereign fund's annual report

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Came across the youtube video below, which distilled some wisdom from a sovereign fund's annual report, Temasek Holdings from Singapore, to be specific.

The link to his slides.

Cutting to the chase, these are the pointers shared by the speaker.

1. Compounding is a powerful get-rich tool as seen
from Temasek’s track record

Aiming for conservative growth but letting the profit stay in the game will compound the yield.

2. Diversify Diversify Diversify: Across Sectors and
Countries

Important to diversify across sectors and across nations so that the risks are diversified.

3. Be able to Stomach Occasional Losses. No such
thing as Always Win

There will be downtime, but if there are reserves, there is no need to worry.

4. Invest heavily during Crisis Times

There are times or years when there are crises, it seems that those are the year they double down more.

5. Even the best investor might not be able to beat a
Globally Diversified Index

Specifically, the speaker mentioned https://www.msci.com/World.

P/S: This is not financial advice, and please do your own due diligence before investing.

Reflections

Proportion what one can stomach as drawdowns, so the holding power is there. Invest in time of clear crisis.

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Distilled wisdom from a sovereign fund's annual report | Ecency