Invest Like a Sovereign
Over the weekend, a discussion on the topic of sovereign wealth funds turned into a debate about owning versus trading. The Voo-Doo Prof forwarded an article about the results and investment approach of Temasek Holdings, one of the two sovereign wealth funds in Singapore. The fund has been around since 1974 when the government of Singapore divested its holdings in the nation's airlines and telecommunication companies. Temasek was the recipient of the shares. They still own many of those stakes with majority positions in marine construction companies, infrastructure concern Keppel (KEPLY), and Singapore Airlines (SINGF).
This type of long-term focus has allowed the fund to rack up a 17% compounded return over the past 38 years. Those numbers are in line with some of the greatest investors of all time, including legends Walter Schloss, Warren Buffett and Howard Marks. They buy to own, not to trade....502 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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