Achieved 1,000% return on 40 million won; children's accounts hit 9,000%
US stocks make up an overwhelming proportion of her total assets.
Author Kim Woon-ah achieved high returns through long-term investment in US growth stocks and shared her investment philosophy and know-how.
US stocks make up an overwhelming proportion of her total assets.
As a young professional, I experienced several trials and errors investing in funds and ELS (Equity-Linked Securities) products.
I started investing in domestic stocks in 2013, but felt limitations in generating profits within the 'box-P' range, which has a defined bottom and top.
From 2016, I focused on the scale and corporate growth potential of the US market, embarking on serious investment.
She mentioned that when focusing on trending companies, the number of stock holdings can temporarily increase.
During market correction periods, she manages her portfolio by consolidating it to about 10 blue-chip stocks.
Tesla greatly contributed to achieving a net worth of 1 billion won during the COVID-19 pandemic.
She was drawn to the growth process of NVIDIA, transforming from a graphics card manufacturer into an AI infrastructure company.
She makes long-term investment a principle, trusting in the CEO's philosophy and future vision.
She prioritizes companies encountered in daily life, such as on YouTube.
She employs a strategy of favoring companies like Alphabet that will lead future industries.
Her assessment is that even if a price is at its peak at the current moment, it is highly likely to become a low point over time.
She advises that if there is anxiety about a high point, it's good to start by investing in one or two shares with a small amount and increase the proportion during market corrections. This is a way to approach investing stably without missing market trends.
She firmly stated that there is no need to find a second NVIDIA or Tesla in the US stock market. This is because market-leading companies, already possessing overwhelming capital and talent, have even greater growth potential.
AI and IT companies that dominate market capitalization show profit growth rates that exceed the market average.
The analysis suggests that these leading companies continuously enhance shareholder value through their own growth.
Returns are linked to market conditions rather than purchase methods, making it difficult to find a single correct answer.
She advised that for novice investors, dollar-cost averaging is advantageous for achieving peace of mind and securing cash. She personally tends to buy all at once when confident in a stock.
For first-time stock investors, buying market-leading companies in the US market is the safest strategy.
If investing in individual stocks feels burdensome, she recommended that buying even one share of a market index ETF like S&P 500 can be a good start.
The participant, who has invested in various stocks including Apple, Microsoft, and Amazon, explained that she gained great insight from her NVIDIA investment.
She invested in NVIDIA in 2016 but sold it after short-term profits. Seeing the stock price surge afterward, she learned from experience that a long-term holding strategy is advantageous for US stocks, unlike domestic stocks. It's important to gain experience holding for the long term in companies like Apple, which have proven their resilience through continuous share buybacks and dividends.
She said it's difficult to respond to a market that doesn't move as predicted by relying solely on chart analysis or financial statement study.
To grow as a stock wealthy individual, it's essential to undergo a process of experiencing various small failures before making serious investments.
He shared his early loss experiences from investing in funds and ELS, as well as losses from investing in a specific messenger app-related stock.
He analyzed that profits provide a fleeting feeling, but losses become a stepping stone for growth by allowing for a review of their causes.
Periods of loss highlight one's own mistakes, such as failing to control greed or misreading market trends.
Considering the difficulty for novice investors to endure market fluctuations, she recommended having a separate small practice account for learning purposes.
She advised using the practice account to gain various trading experiences, such as stop-loss and averaging down, while gradually accumulating market-wide or leading stocks in the main account.
She stated that it is more important to set a selling standard for oneself than to time the market.
She proposed a strategy where flexible response is key to investment, choosing to sell when emergency funds are needed, or when switching to promising stocks, and replacing underperforming stocks.
Stock investment returns are not necessarily directly proportional to the amount of theoretical study.
Rather than excessive learning, one should focus on gaining practical experience after acquiring basic knowledge. She likened real-world accident experience to true learning, much like road driving experience after getting a driver's license.
She revealed that she used to view money negatively due to poverty in her childhood but experienced a change in perception after achieving financial stability.
She explained that money itself is value-neutral, and an individual's attitude towards it is more important. She diagnosed that modern society's comparative culture induces relative deprivation and suffering.
She donates all income from external lectures and writing activities, practicing the proper value of money.
She explained that all of life's worries ultimately boil down to two factors: money and time.
She said that if money is scarce, one can solve problems with time, and by accumulating time to build financial power, one can then use money to solve problems, leveraging this complementary relationship.
Answers come from the transcript, with the exact spot cited.
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