What is investment? The question has been bugging me ever since high school.
1) George Soros referred investment as an experiment on individual investor's hypothesis(The Alchemy of Finance).
2) Benjamin Graham put investment is different from speculation that investment should promise safety of principal and an adequate return(The Intelligent Investors).
Following their paths, I define investment as "setting up hypothesis on margin of safety, and testing it on market in long run".
Actually, I hated investment. Ever since KIKO(Knock-in Knock-out) crisis in Korea in 2007, I've grown strong distrust against financial market. Due to financial institutions and credit-rating companies' greed, I had to watch Korean enterprises fall due to turbulence of the foreign currency exchange market. After then, I even regarded investment as the evil of capitalism. It seemed as if the financial market was established only to fulfill the greed of the rich.
But two events made me start to learn about value investment. I switched conception towards financial market after learning Bernanke's paper about how financial was formed 'endogenously'. The paper was implying that existence of commercial banks/financial institutions was prerequisite since it fulfills the needs of investors. Moreover, thanks for my classmate who told me about Piketty, I realized capital gains' growth rate have been outweighing earnings' growth rate for past century.
In short, I began to learn value investment after 1) I realized that financial market's existence is not evil, but necessary in capitalism system, and after realizing 2) I will lag behind if I don't know how to make use of the capital in the financial market.
The blog's purpose is simple. I hate to lose in games. So I want to beat the average capital gains in financial market. Not to mention that I also hate to lose money which I hate even more than losing in games. Therefore, this blog's purpose is self serving, which is to summarize and recap necessary information for beating the market. But its contents will be legible by other readers who might provide me constructive feedback.
Lastly, why am I investing in Korean market? Indeed, East Asia(Thailand, Malaysia, Vietnam) seems enticing in terms of growth. But come on, why is Korean companies ridiculously cheaper than other country's? There is a thing called "Korea discount". Basically, my country is still on war against North Korea, which attributes Korean stock prices cheaper than other country's. But John Templeton said to buy on war fear right? So I will start to post on buying decision on companies in amidst of war fears.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Don't chase me holding the knife on your hand. I am only responsible for my money.