Job search boss began investing in unit trusts at 17

WHILE his classmates were hard at play during recess time in school, Mr Lorencz Tay was hard at work helping his grandfather sell noodles in the school tuckshop.

That go-getter mindset became a part of his life at the age of 11 and has stayed with him since.

Mr Tay, now 40 and the founder and chief executive of recruitment consultant PeopleSearch, has long been on the entrepreneurial track.

When at Temasek Junior College, he ventured into unit trust investing using his mother's trading account. By the time he was in university, he was a part-time property agent.

His real estate knowledge helped him strike gold on his first private property in Meyer Road. He bought at $860,000 and reaped $1.75 million three years later when it was sold en bloc in 2000.

Mr Tay was reluctant to burn his weekends on property viewings so he switched to recruitment consultancy in the early 1990s. In 2000, he ventured out on his own, starting with an office in Taiwan before setting up similar operations here and in Malaysia, Hong Kong and Japan.

It was a dream come true for Mr Tay, who knew he wanted to be his own boss since he was a boy.

PeopleSearch hires 110 people in the region, with the Singapore office accounting for about 50. 'We believe and invest in our people. We coach them using leadership training programmes so they are developed according to their needs and strengths,' said Mr Tay, whose wife is a banker.

Q Are you a spender or saver?

A Less than half of my monthly remuneration goes to paying for property tax, household expenses and insurance premiums.

I'm not into impulsive buying. I withdraw $200 to $300 each time I go to the ATM and that lasts me one to three weeks. I also pay my credit bills in full.

Q What about insurance planning?

A I am covered for $3 million by term, whole life and critical illness plans.

I also have health and keyman insurance (which covers business loss in the event of either the death or disability of a key executive) where part of the proceeds will go to my wife and the balance to the firm. My yearly premiums total $16,000.

Q What financial planning do you have?

A I have about $300,000 invested in stocks such as Singapore Airlines, Chip Eng Seng and City Developments, as well as good dividend plays like SingPost and SMRT.

I've been investing since I was 17 with a classmate and we still discuss stock investments together. For the long term, I have also invested less than $100,000 of my CPF money in four investment-linked insurance plans.

Q What is your investment philosophy?

A I make my own judgment. I buy and hold for the long term. I don't buy on sentiment, but by looking at fundamentals such as profitability, cash holdings, price to earnings ratio, the business strategy, future prospects and margins. I get this information from the Internet and annual reports. When the market crashes, it is the best time to invest.

Q What about properties?

A My past experience as a property agent has helped me pick up some good bargains. I helped my parents sell their HUDC Tampines apartment at a profit and my first private property at Meyer Road was sold in a collective sale.

Besides my home, I have a 1,800 sq ft condominium, also in East Coast area, which is delivering a net rental yield of 4 per cent. Purchased at $1.05 million, it is now worth more than $1.2 million.

Q What is your best investment?

A I started my firm with savings of $40,000 in 2000. Together with four people, we pooled $100,000 and began an executive search business in a 600 sq ft office in Taiwan. We broke even in four months. A year later, we started an office in Singapore.

Since then, I've invested a few hundred thousand dollars in PeopleSearch and the business is now worth several million dollars.

Q What has been a bad investment?

A My Lexus SC430 two-door coupe is a bad investment simply because it has depreciated so much. It is now worth $130,000, much lower than the purchase price of $285,000 three years ago.

Q What are your retirement goals ?

A I've already achieved financial independence. If I retire tomorrow, a team of capable leaders will run the show and that is my company's vision: To build an organisation that lasts beyond a lifetime.

Q What is your home?

A A 3,000 sq ft semi-detached house in East Coast which I bought at $1.5 million in December 2005.

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Best investment

'I started my firm with savings of $40,000 in 2000. Together with four people, we pooled $100,000 and began an executive search business in a 600 sq ft office in Taiwan. We broke even in four months. A year later, we started an office in Singapore. Since then, I've invested a few hundred thousand dollars in PeopleSearch and the business is now worth several million dollars.
MR LORENCZ TAY, the founder and chief executive of recruitment consultant PeopleSearch, which hires 110 people n the region, with the Singapore office accounting for about 50