Hello.
Recently, the Korean stock market has been rising and falling a lot, so many people are wondering "What should I buy now?" and "How should I invest in this situation?".
I would like to carefully write about diversified investments rather than hot individual stocks like Samsung/Hynix semiconductors, which are not related to the Korean market.
(Although I'm a newbie who hasn't been here long, I hope this article will be helpful to someone. If my writing doesn't make sense, please be understanding. 😂)
I currently live in Italy and have been investing for over 20 years. I've tried a lot of things, including individual US stocks, bonds, thematic stocks, commodities (GameStop, AMC, etc.), meme stocks, and leverage and short selling in the US market during the COVID-19 period.
I've made quite a bit of profit, but I've also experienced significant losses.
Over time, my investment methods have become simpler.
Now, I mostly follow the Bogleheads investment approach, which is based on the philosophy of John Bogle, the founder of Vanguard, one of the world's largest investment firms, who popularized Index ETF investing.
Before you start investing, it's important to understand your own investment and risk tolerance. Then, set your asset allocation (Asset Allocation) rather than choosing which stocks to buy.
Before deciding what stocks to buy, you should first decide what percentage of stocks and bonds to hold based on your investment style and when you need the investment funds.
(For example, if you invest 100% in an S&P 500 ETF VOO or All Worlds ETF VT, the maximum drawdown (MDD) can be -50% or more. It's important to understand how long you can withstand this situation. It's also important to know when you need to recover your investment funds. If the market drops sharply and you need money urgently, you may not be able to avoid a large loss.)
Once you have set your asset allocation, choose ETFs for diversified investments accordingly, and then invest as simply as possible.
Invest as soon as possible when you have disposable income
Choose ETFs with low management fees
Diversify investments globally
Don't try to predict the market
Stick to your principles even in a downturn
One of the most common sayings among Bogleheads is:
"Don't look for the needle. Buy the haystack."
(Don't try to find the needle, buy the whole haystack.)
No one knows which company will grow the most in the next 10 years. (You might get lucky, though. 😎)
But by investing in the entire global market, that company will eventually be included in your portfolio.
Another saying I agreed with is:
"Stay the Course."
It means don't try to time the market and stick to your initial principles.
I've learned that while future returns are unknown, costs can be reduced. Therefore, I prefer ETFs with low management fees.
Ultimately, the hardest part of investing is not finding good stocks but sticking to good principles for a long time.
I used to try hard to beat the market.
But now I've concluded that consistently buying the entire market is the easiest and most satisfying way to invest.
(While there are no sudden surges in individual stocks, this method can lead to above-average results compared to global stock investors.)
By the way, I'd like to introduce some books that have helped me with investing.
1) Morgan Housel: The Psychology of Money
- It's a general guide on managing assets (rather than stock investing), and it's easy to read and not too long.
2) John Bogle: The Little Book of Common Sense Investing
- My favorite Vanguard founder who popularized the first Index ETF, and
in one sentence, the book says to ignore all market noise and
Low cost, diversified된 Index ETF를 가지고 있으면 된다…. 를 간략하게 소개한 책이예요
3) 피터 린치: 전설로 떠나는 월가의 영웅
- 아무리 고수라고 해도 시장 (Market avg)을 지속적으로 이기기 어려운데, 마젤란 펀드에서
그걸 해 낸 인물이고, 시장 수익을 이기기 위한 투자는 이렇게 해야 한다… 정도로 보면 좋을 것 같습니다.
(저 같이 평범한 사람은 그냥 Index ETF를 가지고 있는게 좋습니다.)
4) 벤저민 그레이엄: 현명한 투자자
- 워렌 버핏의 스승인 그레이엄의 책인데 굉장히 고전이고, 읽기가 쉽지 않지만,
(주식 : 채권) 자산 배분의 중요성에 대해서 설명한 책이예요.
5) 대니얼 카너먼: 생각에 관한 생각
- 이 책은 자산 관리 및 투자와는 직접적인 상관은 없는 책이지만, 제가 감동 받은 책 중에 손꼽히는 책이라
소개드립니다.
심리학자 최초로 노벨 경제학상을 받은 분인데, 행동 경제학을 창시하였고,
이 후에 Nudge 등 다양한 책들이 동 책에 영향을 받았습니다.
사람의 심리가 의사 결정 (투자든 일반 결정이든)에 어떻게 영향을 주는 지인데 정말 좋은 책이예요.
물론 이 방법이 정답이라고 말씀드릴 수는 없고, 여러 방법을 경험한 끝에 제가 내린 결론이라 참고 정도만 해주시고, 한 분이라도 도움을 받을 수 있으면 좋겠습니다. 😂
혹시 궁금하신 사항 있으시면 질문 남겨주시면 최대한 아는 선에서 설명드리도록 하겠습니다.
▶ 원문 출처: https://www.bogleheads.org/wiki/Main_Page
