In a year where most major markets have gone into bear territory, Temasek surprised on the upside with their net portfolio value hitting a record high of $403 billion, broken down into a one-year investment performance of 5.81% (or an annualised 14% compounded since its inception in 1974). Source: Temasek Review 2022 I had the privilege of being invited to their 2022 Temasek Review, where they shared more insights that weren’t covered in the press release. Here are some key messages that stood out for me: A diversified portfolio based on intrinsic value picks Temasek’s investment discipline is centred around intrinsic value vs. a risk-return framework. In other words, the thesis for every investment needs to point to a clear intrinsic value and future growth, which is then measured against the corresponding risk-adjusted cost of capital. Higher risk sectors or markets naturally get assigned higher costs of...