John Lee: "The Market is About Time Investment, Not Prediction"

Stock investment is not merely about pursuing capital gains but about acquiring corporate equity and investing in the value of time.

The majority of U.S. stock market trading volume is comprised of retirement pensions, which are managed on a large scale.

In contrast, Korea has an excessively high proportion of individual investors, and timing-based investments focused on macro indicators are rampant.

Professor Kim Kwang-seok expressed concern that Korean household assets are excessively concentrated in real estate physical assets instead of financial assets.

Even the banking sector is content with loan interest profits, so if real estate prices fall, household debt risk could threaten the entire economy.

This ignores the fundamental investment principle of securing asset liquidity and diversifying risk.

This contrasts with the U.S. model, where financial institutions lead investment.

If funds are tied up in real estate speculation, innovative companies that truly need capital face obstacles to growth.

Just as company matching fund support led to the system's establishment, Korea also needs government and corporate cooperation.

The U.S. has established a virtuous cycle where retirement pensions are locked until age 60, naturally leading to long-term investment.

He suggested that Korea also needs a long-term investment plan involving the government, corporations, and individuals.

CEO John Lee warned that tying one's entire assets to a single home and paying a mortgage for 30 years is a serious risk.

If monthly rent becomes the norm for housing, as in developed countries, asset liquidity is secured, allowing capital to be invested in stocks or other assets at any time.

He criticized the prediction that real estate prices will continue to rise as an unfounded prejudice and a result of financial illiteracy.

Investors with 20 years until retirement need a strategy to allocate 100% of their assets to stocks.

Considering a long investment period of 20 years, short-term volatility is meaningless. Insisting on principal-guaranteed products is the most dangerous choice that hinders asset growth.

Principal-guaranteed products are no different from dormant assets, making it impossible to avoid the real value depreciation due to inflation.

CEO John Lee criticized that many investors still have the wrong perception that timing price fluctuations is investing.

An investment culture obsessed with target prices and stop-losses makes one focus only on market fluctuations rather than a company's intrinsic value.

Trading aimed at short-term capital gains cannot be considered true investment.

Fluctuating with every gain and loss in returns increases the likelihood of making wrong decisions, such as stop-losses, driven by fear.

He advised that accumulating assets with the growth of companies from a long-term perspective is a wise investment.

For those in their 20s with ample time, investing 100% in equity ETFs and reducing the proportion as they age is appropriate.

The current regulation limiting the stock investment proportion in pension savings funds to 70% needs improvement.

Even when a market crash occurs, the majority of investors cannot seize buying opportunities due to fear.

He criticized that mechanical and consistent investment, like the U.S. 401K system, is the key to success, and adjusting cash allocation by predicting the market is an irresponsible strategy.

He warned that waiting for the low can lead to completely missing market upturns.

Jewish parents teach their children not only academic achievement but also how to forge their own path, including entrepreneurship and investment.

Like the jeans entrepreneurs who built wealth during the Gold Rush, rather than the miners who dug for gold, the secret to wealth is to be number one in a blue ocean, not in a fiercely competitive place.

Korean education still forces conformity to the path most traveled. True wealth is created through an entrepreneurial spirit that leads to being number one on an untrodden path.

He stated that this Jewish way of thinking is important for breaking existing prejudices and seizing new wealth opportunities.

He chose the format of an autobiographical novel to avoid theoretical rigidity and to convey his aspirations for advanced Korean finance.

Based on the story of an ancestor from 500 years ago who appeared in a dream, the book depicts his desire to complete their unfulfilled tasks in reality.

It is time to instill an independent economic perspective in children rather than having them follow the same path as others.

For children, financial literacy education is more urgent than English and mathematics. An education system that values diversity rather than conformity is needed.

Efforts should be made in education to cultivate a long-term perspective, moving away from a culture that fluctuates with every short-term stock price change.

Companies with pricing power are better positioned to defend against inflation than individuals. Investing to share the value of innovative companies is essential for asset growth.

Stock investment is not merely about parking funds in the market. It is a process of participating in the future value and innovation presented by individual companies.

Korea has all the conditions to leapfrog into a financially powerful nation, and changing the perception of money and overcoming financial illiteracy are key future tasks. CEO John Lee explained that the Korean stock market grew from 4 trillion won 42 years ago to its current size of 5,000 trillion won, an increase of over 1,000 times. Looking at the past 100 years of history, the stock market has consistently shown an upward curve.

Ultimately, for Korean society to advance into a financially powerful nation, overcoming financial illiteracy and changing the perception of money must precede.