CEO Jeong Ju-yong Presents S&P 500 and AI Innovation Investment Strategy

He explained that because these firms move in the same direction within the broader K-semiconductor framework, investors should invest based on an understanding of the semiconductor industry as a whole. He stressed that reading the macro flow is more important than tracking the minor movements of individual companies.

Jeong Ju-yong emphasized that investors should be value investors who focus on the fundamental growth of companies, rather than price investors who get swayed by price swings. He said price investors are likely to grow exhausted by short-term market fluctuations and leave the market, whereas value investors can keep investing steadily and happily. He advised maintaining a value investing mindset for comfortable and stable investing.

He explained that such periods will certainly come within the next two to three years, and that investing boldly at those times can deliver long-term returns. He stressed that successful investing requires moving against the common investor psychology.

He cited the example that the price of three-year-old GPUs (graphics processing units) has risen, explaining that this can be an important signal of the real value and demand for AI technology. He emphasized that the essence of investing lies in the practical application of technology and the creation of value.

Jeong Ju-yong assessed that South Korea is a country where AI models can be put to genuinely important use. He noted that the U.S. has few advanced manufacturing plants, whereas Korea is a manufacturing powerhouse with abundant data that data analytics platforms like Palantir would covet. He stressed that Korea has great potential to further strengthen its manufacturing competitiveness through AI innovation.

This suggests that Palantir's data integration and analysis solutions are deeply involved in Korean manufacturing sites.

Jeong Ju-yong argued that Korea should integrate manufacturing site data through K-Palantir-style innovation. He stressed that innovations like Palantir, which tear down data silos on the factory floor and streamline data in real time, should happen in each industry. He explained that this manufacturing AX (AI Transformation) will be a key factor determining the future competitiveness of Korean manufacturing.

For instance, it might take 10% of the gains from efficiency improvements over a month. He added that once integrated into a system, it is hard to get out.

Jeong Ju-yong stressed that the solution to the AI bubble debate lies in manufacturing sites, and he was optimistic that Korea could produce several Palantir-like decacorns (startups valued at over $10 billion) and become Asia's leader. He explained that Korea's solid manufacturing base and accumulated data could become important assets driving AI innovation. This expressed the expectation that Korea can hold an important position in the global AI market.

Referring to Warren Buffett's Berkshire Hathaway approach, Jeong Ju-yong advised looking for companies like Coca-Cola that have persisted and grown steadily for over 10 or 20 years. He emphasized the importance of investing in companies that can exist stably and create value over a long period, without being swept up in short-term fads or themes.

Jeong Ju-yong assessed that the most formidable strength of AI company Anthropic is not money or the technical power of its AI models. Rather, he prized Anthropic for being the most ethically and philosophically grounded. He predicted that as AI technology advances, ethical and philosophical foundations will matter even more, and companies with such values will succeed in the long run.

On how to start investing, Jeong Ju-yong recommended that if you have an interest in a stock, do not hesitate to invest even a small amount. Holding a small quantity, such as 10 shares, lets you directly experience and verify whether your hypothesis is correct. He proposed a strategy of gradually increasing the size of the investment to 100 shares and then 1,000 shares once the initial hypothesis is judged to be right.

Jeong Ju-yong described the essence of the stock market as "a function of earnings and a scale in the long run, and a popularity contest in the short run." This means that in the long run a company's earnings are reflected in its share price, while in the short run prices fluctuate according to investor psychology and trends. He stressed that investors should understand this dual nature of the market and focus on company earnings from a long-term perspective.

Jeong Ju-yong pointed out that the timelines for realizing visions differ between NVIDIA CEO Jensen Huang and Tesla CEO Elon Musk. He said Jensen Huang tends to keep his promises on roughly a two-year cycle, whereas Elon Musk often fails to deliver even after three or four years. Nevertheless, he added, Musk's distinctive appeal draws investors' expectations.

He particularly stressed that in Korea, solution companies that integrate manufacturing site data and maximize efficiency will play an important role. He explained that such solutions are the key to raising the practical value of humanoids.

Jeong Ju-yong argued that profits earned in the semiconductor industry should be invested much more in basic science fields such as quantum, particle accelerators, physics, and astronomy. He said only if such investment happens will more innovators like Elon Musk emerge in Korea and fundamental technological innovation become possible. He stressed that investment in basic science is essential from a long-term perspective rather than focusing only on short-term results.

Responding to concerns that people may lose their jobs in the AI era, Jeong Ju-yong proposed a new approach. He suggested offsetting the risk by taking an equity stake in the companies developing the AI technology that threatens one's own job. In other words, if jobs are likely to disappear due to AI advances, he proposed a strategy of earning returns by investing in the companies that grow through that technology.

He explained that for investors who find in-depth analysis or study burdensome, simply buying the S&P 500 without overthinking it effectively gives them exposure to the AI industry. Because the S&P 500 includes many large AI-related companies, he said, index investing is an effective way to reflect the flow of the AI era.