[W Forum] Narrow the Gap Between Price and Value

'What do you consider most important when making an investment decision?' 'What do you think constitutes a good investment?' 'How do speculation and investment differ?'

These are questions I, working in investment-related fields, often hear. Sometimes clients with little investment experience ask, and colleagues frequently discuss them, but they are questions I ask myself most often before making decisions. The most important thing is to distinguish between the 'gap between value and price.'

If a writing instrument worth more than 10,000 won is still unknown to people and can be purchased for 4,000 won, there is no special reason to hesitate. I can buy it now and use it sufficiently, or give it to a friend to whom I wanted to give a gift worth about 10,000 won. When the true value of the writing instrument begins to be recognized by many people, I can resell it for 8,000 won. In any case, when the price converges to its value, it can bring considerable joy.

It is not as easy as it sounds. To be recognized as a good writing instrument, the producer's relentless effort is necessary. Even if it is not recognized at once, should they continue to develop and make this writing instrument? Are there other companies' products with similar functions but better design? Is it a product that will only be popular for a very short time? Is the design something only local consumers like but others reject? Could someone quickly imitate and make it? There are many things to consider.

The same principle applies to us. It takes effort to increase our value until others recognize us. Both qualitative and quantitative aspects are important in investment. To put it differently, I will classify them as 'what is felt and what is seen.' Even if you fail several times before achieving your goal, sincerity that does not give up and confidence that 'I can do it,' along with a positive mindset, will continuously drive up your qualitative indicators. Sometimes, more than sales or operating profit, what moves investors' hearts is 'who' makes that writing instrument. If a boss who only smokes and complains brings a new product, and a boss who always works with a smiling face and bright voice does the same, whose writing instrument would you buy?

Convey bright and positive energy. Make everyone feel that you are a bright and sincere person who can always complete your tasks at a level better than others and on time. Surely, the number of people who need you will increase day by day.

What is seen can be distinguished more clearly. To create a writing instrument with better performance while spending the same cost as competitors, you must make efforts that others do not. You cannot build quantitative strengths that differentiate you from others by just relaxing while watching TV or resting with acquaintances. Whether reading work-related books or studying to fill gaps, time for effort is necessary.

When categorizing investment types, the term 'high risk, high return' is used. The higher the level of risk you are willing to bear, the higher the expected return rate. It is the same here. The greater the risk you can handle?that is, the greater the pleasure you can give up immediately?the more you can increase your value. Even if you have gone through difficult and sometimes painful times, if your value can eventually converge to a price recognized by others, isn't it an experience worth enduring at least once? Unlike in the past, efforts to promote oneself are also required nowadays, but ultimately, the market price meets the value that the subject holds. You can make something look expensive with a momentary decoration, but if fundamental flaws are revealed, the price can plummet. This weekend, let's pledge to devote our hearts and time to creating more fundamental and sustainable value.

Yoon Bowon, Sales Executive, Hana Financial Investment Club1WM Center

This content was produced with the assistance of AI translation services.