[One Sip of a Book] Change Your Thinking, See Stocks Differently

Some sentences encapsulate the entire content of the book itself, while others instantly resonate with the reader's heart, creating a connection with the book. We introduce such meaningful sentences excerpted from the book. - Editor's note

Mu-guk, a practical investment expert with 35 years of experience, and his disciple, anchor Jeong Yuri, who runs a stock-specialized YouTube channel, introduce the "Winning Before Fighting Stock Investment Method" through the book “You Have to Change Your Thinking to See Stocks”. They explain how to understand a company's governance structure, M&A history, and the direction of new businesses, emphasizing that investors must properly grasp these aspects to select stocks and predict future stock price trends. The book interestingly narrates the governance and history of Korea's five leading companies?Samsung, Hyundai Motor, SK, Lotte, and Hanwha?like a novel, providing insights into their future trajectories.

Samsung's governance restructuring is entangled with various uncertainties. Although it is not an immediate issue, it is a task that must eventually be resolved. Vice Chairman Lee Jae-yong has abandoned the fourth-generation management succession, but the owner family’s reduced deep involvement in management is separate from solidifying control or ownership. Ultimately, the goal is to stabilize the overall group’s control and establish a governance structure that is not influenced by policy winds, which is expected to proceed slowly. The problem is funding. Samsung Electronics has ample reserves, but there is no surplus cash solely available for governance restructuring of other affiliates. Therefore, strategies must be employed to maximize the use of cash held by Samsung Electronics and to grow corporate value within affiliates themselves to generate cash. Samsung Biologics’ acquisition of shares in Samsung Bioepis is interpreted in the same context. Samsung Biologics agreed to purchase 10,341,852 shares of Samsung Bioepis from the U.S. biotech company Biogen for $2.3 billion. Through this share acquisition, Samsung Bioepis became a 100% subsidiary of Samsung Biologics. - From 1-15. The Core of Governance Restructuring, What Is the Beginning?

On the surface, it emphasizes legitimacy and tradition, but the real reason Chairman Chung Mong-koo entered the acquisition battle was different. He planned to make construction the third growth axis following automobiles and steel. With Hyundai Motor Group’s automobile business stabilizing overseas and the completion of Hyundai Steel’s integrated steel mill, acquiring Hyundai Construction would prepare Hyundai Motor Group to leap into an eco-friendly business group of growing importance, including eco-friendly power generation, residential charging systems, eco-friendly housing, hybrid cars, and electric vehicles. The acquisition of Hyundai Construction was the final puzzle piece in the vision to complete the Eco Value Chain, which extends from Hyundai Motor’s eco-friendly car development, eco-friendliness in steel, green cities and eco-friendly buildings, to nuclear power plants. - From 2-8. The Second Battle of the ‘Prince’s Rebellion’ Returning After 10 Years

You Have to Change Your Thinking to See Stocks | Written by Lee Seung-jo & Jeong Yuri | 368 pages | 16,200 KRW

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