Bae Jaegyu: "Successful Investing Requires 'Direction' and 'Time'... Invest Long-Term in Big Tech"

"Long-term investment for future growth is crucial. Rather than relying on short-term market outlooks or forecasts, you should pay attention to changes in the world and invest in technologies that will lead the future. Investing through thematic exchange-traded funds (ETFs), rather than individual stocks, is a way to reduce volatility and earn returns more safely."

Bae Jaegyu, CEO of Korea Investment Management, presented the core principles for successful investing at the 'ACE ETF Rebranding 3rd Anniversary Investment Seminar' on November 24.

He emphasized the importance of investment direction and the necessity of long-term investing, stating, "Successful investing requires meeting two conditions: 'direction' and 'time.'"

Bae, who is also the author of the recently published book "Anyone Can Become Wealthy Through Investing," said, "No matter how good a product you create, if investors repeatedly engage in short-term trading, it is difficult to achieve long-term returns," adding, "I wrote this book to help investors 'make money.'"

He stressed, "Manufacturing ended before 2000," and "Tech companies are now leading value creation in the world." With the advent of the artificial intelligence (AI) era, he argued, "We should focus on 'big tech' companies utilizing AI and companies producing AI semiconductors."

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He was also firm regarding the so-called 'AI bubble theory' raised by some. Bae said, "No one can answer whether this is the peak or not," advising, "What matters is where value creation is happening in the world."

He continued, "The paradigm shift driven by AI and semiconductor technological innovation has already begun," emphasizing, "The basis for investment decisions should not be the present, but where value will be created in the future." He reiterated, "Bubbles have always existed and will continue to appear in the future," and "What matters is not whether there is a bubble, but the future value that the industry will create."

Bae identified eight common pitfalls that investors easily fall into: ▲outlooks and forecasts ▲trading based on information ▲expecting mean reversion ▲short-term investing ▲market timing ▲investing based on hype ▲rotational investing ▲value investing. He pointed out, "Of the 469 forecasts made by the International Monetary Fund (IMF), only 17 were accurate," noting, "With a hit rate of just 3%, investors still tend to rely on market outlooks and predictions."

He explained, "You should invest from a long-term perspective without being swayed by market volatility," adding, "If you invest in the Nasdaq index for the long term, you can expect an average annual return of 15%." He further advised, "When new technologies emerge, ETFs automatically add stocks that fit the concept," and "long-term investment in the Nasdaq is the safest approach."

Bae concluded his lecture by once again emphasizing investment principles for the digital age. He stated, "You need to read the trends of the times and allocate capital to the tech industry, which is at the center of structural growth," and "To build a structure that overcomes short-term volatility, you should utilize ETFs." He added, "If you do not get distracted by market noise and entrust your capital and time to industries that build the future, anyone can become wealthy through investing."

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