Young-ok Park : COVID-19 and Selecting Companies for Investment

Since 30th December 2019, The Asia N has introduced a column by Young-ok Park, CEO of Smart Inc. and Korea’s leading stock investor, to readers for 34 times.

Young-ok Park, who is also a board member of the Asia Journalist Association, says that stock investment is not a ‘speculation’ intended for making a fortune, but an investment that raises company with the heart of a farmer who sows seeds, fertilizes them with an appreciation to sunlight, water and air. This is why Park is known as a ‘stock farmer’ in the industry of Korean securities.

The first episode of the series with a title ‘Young-ok Park’s Stock Story” by The Asian N, was titled as “Only the Large Shareholders are owners? All investors are owners!” He said “If we invest in blue-chip companies with a farmer’s heart and a long-term perspective, we will never fail.” “Although it is difficult due to pandemic situation caused by COVID-19, it is still a good time to select companies and invest in them to save the company as well as enrich the family economy.”

He has written in his 34th last series in The Asia N as;

Many people ask me. If you own that much assets, wouldn’t it be better to sell a large portion and cash it in. Even if you sell half of it and put it in the bank, your grandchildren can live without worrying about earning money. Isn’t it much safer to do so than to invest all of assets in a risky stock market.

There are times when such thoughts come across my mind. When I the company that I had invested in seems to have a bright future and requested to be a stockholder but when they do not respond, when the major stockholder runs a company solely for his own profit, or when an irrational law happens, I feel like selling all of my stocks, stack up cash and live a comfortable life.

Sometimes, I want to abandon my title as a ‘full-time investor’ and live as a ‘part-time investor’ who spends only a fraction of his assets.

People know me as a person who made great money from stock investments, and so do I. But strictly speaking, I did not invest in stocks. I invested in a company and thanks to is, I was able to become rich. Therefore, investing in a company is both a duty and a great reward for me. Of course, I feel good when I make a profit and I feel sick when I lose money. Profit, however, is never the only reason for stock investment.

By investing in companies, contributing to economic development and sharing corporate performance is the reason why I invest and why I encourage people to invest.

I was worried whole time while I was writing this article. There were rarely any good stories and it was mainly about irrational aspects of the stock market. I pointed out the unfavorable environment of the stock market to individual investors. I talked about tyranny of major stockholders, and the frustration of individual investors who had no way of keep checking them.

“As expected, the stock market was no place for an individual investor like me.” “As I have heard, the stock market is hell for individual investors.”

I am worried that there might be some people who make such conclusions. If there are anyone like that, I hope that you remember that I invest almost all of my assets in companies. I would like to emphasize the fact that although there are many irrational and extraordinary events happening in the stock market, but companies are still attractive investment destinations.

I hope that people will not only live as employees of companies. We hope to be the owner of the company with the capital we received for providing labor to the company. We hope that money that drives us to work will allow us to enjoy economic affluence. This is the way to become rich in capitalist society. As long as we are living in a capitalist society, economic hope can only be found in capital.

The stock market, which is an economic hope for ordinary people, can be changed to become fairer and more rational just by improving a few systems. The stock market must change in order to make more people to study, communicate, accompany and invest rationally. Conversely, if the stock market changes to a rational way, investors’ investment methods will also change. What does a rational and fair stock market look like? Imagine now if you have never imagined.

Are you nervous about something might happen to a company after you have invested? Anxiety mostly comes from the absence of communication. Is there really no way for us to communicate with managers? Is it impossible for a person with administration ability to manage a company and share performance through dividends like other stockholders?

Is it so difficult to vote while watching the debate in front of the computer if the shareholders’ meeting becomes a venue for active debate and the situation is not favorable? I think it is very possible. We are living in a democratic country. Voter’s pu