Knowing valuation reveals 10x stocks.
 |
Description
Book Introduction
- A word from MD
-
Discover great companies!This is a new book by author Park Soon-hyeok, who offers investment insights through clear analysis and outlook on the battery industry.
From an investor's perspective, we share valuation tools and how to utilize them to discover companies like Ecopro.
Let's evaluate the fair value of a company from our own perspective and develop an eye for successful investment.
June 4, 2024. Economics and Management PD Kim Sang-geun
Ants' mentor, Battery Man's new book
From investment strategies to find 10x and 100x stocks
Here's how to respond to those bitten by secondary battery stocks!
The Battery Man's secret is
It was a valuation investment!
Someone has shown insight into the battery industry, with a provocative message that the Korean battery industry will take the lead in the battery market.
This is writer Park Soon-hyeok, also known as the 'Battery Man'.
He invested in secondary battery stocks using his own valuation method even before the secondary battery industry received much attention, and the results shook up the Korean stock market.
The eight stocks recommended by the author, including EcoPro, have been on the rise, and he has even personally disclosed his stock account, proving that his investments are not just empty words.
In addition, Samyang Foods, which was recommended several times on TV, also achieved a record of seven consecutive trading days of growth in May 2024, exceeding a market capitalization of 4 trillion won, providing significant profits to investors.
How could Mr. Battery have predicted this outcome?
The author says his investment know-how is valuation.
Valuation is the foundation and core of investment as it provides a means to properly understand a company's value.
However, the market has recently shown a growing tendency to underestimate valuations due to factors such as blind investment in leading stocks, the meme stock craze, and speculative overheating caused by bubbles in certain industries.
They forget the fundamental truth that if you properly analyze companies through valuation and buy good companies at low prices, you can survive a bear market and not be easily swayed by volatility.
The author has been closely analyzing the market's cycle of recession and boom for 30 years.
I published this book, "Understanding Valuation Will Reveal 10-Billion Stocks," hoping that many investors would invest knowing how to respond without being swayed by market variables.
If you want to invest in stocks without losing money in a turbulent market, this is a must-read.
From investment strategies to find 10x and 100x stocks
Here's how to respond to those bitten by secondary battery stocks!
The Battery Man's secret is
It was a valuation investment!
Someone has shown insight into the battery industry, with a provocative message that the Korean battery industry will take the lead in the battery market.
This is writer Park Soon-hyeok, also known as the 'Battery Man'.
He invested in secondary battery stocks using his own valuation method even before the secondary battery industry received much attention, and the results shook up the Korean stock market.
The eight stocks recommended by the author, including EcoPro, have been on the rise, and he has even personally disclosed his stock account, proving that his investments are not just empty words.
In addition, Samyang Foods, which was recommended several times on TV, also achieved a record of seven consecutive trading days of growth in May 2024, exceeding a market capitalization of 4 trillion won, providing significant profits to investors.
How could Mr. Battery have predicted this outcome?
The author says his investment know-how is valuation.
Valuation is the foundation and core of investment as it provides a means to properly understand a company's value.
However, the market has recently shown a growing tendency to underestimate valuations due to factors such as blind investment in leading stocks, the meme stock craze, and speculative overheating caused by bubbles in certain industries.
They forget the fundamental truth that if you properly analyze companies through valuation and buy good companies at low prices, you can survive a bear market and not be easily swayed by volatility.
The author has been closely analyzing the market's cycle of recession and boom for 30 years.
I published this book, "Understanding Valuation Will Reveal 10-Billion Stocks," hoping that many investors would invest knowing how to respond without being swayed by market variables.
If you want to invest in stocks without losing money in a turbulent market, this is a must-read.
- You can preview some of the book's contents.
Preview
index
Prologue: This is how I valued it.
Chapter 1: The Most Important Questions Investors Ask
What creates value?
Are values subjective or objective?
Story and numbers, what should I look for?
Let's start from the essence
Chapter 2: Great Giants and the Korean Stock Market
Benjamin Graham, the father of valuation
From Graham to Fisher
Warren Buffett's Investment Secrets
Peter Lynch's Investment Secrets
How George Soros Understands the Market
The Evolution of Valuations in the Korean Stock Market
Chapter 3: Understanding Valuation Tools to Make Money
Anatomy of Various Valuation Tools
How to Use DCF, PER, and PEG
A Valuation Tool with Excessive Utility: PBR
A Great Auxiliary Indicator for Equipment Industry Valuations: EV/EBITDA
Conditions for receiving PER premium
No growth, no value
Chapter 4 | Why Did They Ignore Secondary Batteries?
The reason why EcoPro is said to be 30 times faster and EcoPro BM is said to be 10 times faster
Why the Yeouido Stock Market Ignored Secondary Batteries
Do you know the valuation?
Chapter 5: Stocks to Buy and Stocks to Sell
Amazon has repeatedly experienced bubbles and crashes, but has also shown a rising trend.
What was the difference between the dot-com bubble and the mobile revolution?
The Power of Distinguishing Between Market Bubbles and Revolutions
Knowing which stocks to avoid can help you know which ones to buy.
Essential Principles for 10-Bottom Stocks
Epilogue: Harmony and Balance Are the Keys to Investing
Chapter 1: The Most Important Questions Investors Ask
What creates value?
Are values subjective or objective?
Story and numbers, what should I look for?
Let's start from the essence
Chapter 2: Great Giants and the Korean Stock Market
Benjamin Graham, the father of valuation
From Graham to Fisher
Warren Buffett's Investment Secrets
Peter Lynch's Investment Secrets
How George Soros Understands the Market
The Evolution of Valuations in the Korean Stock Market
Chapter 3: Understanding Valuation Tools to Make Money
Anatomy of Various Valuation Tools
How to Use DCF, PER, and PEG
A Valuation Tool with Excessive Utility: PBR
A Great Auxiliary Indicator for Equipment Industry Valuations: EV/EBITDA
Conditions for receiving PER premium
No growth, no value
Chapter 4 | Why Did They Ignore Secondary Batteries?
The reason why EcoPro is said to be 30 times faster and EcoPro BM is said to be 10 times faster
Why the Yeouido Stock Market Ignored Secondary Batteries
Do you know the valuation?
Chapter 5: Stocks to Buy and Stocks to Sell
Amazon has repeatedly experienced bubbles and crashes, but has also shown a rising trend.
What was the difference between the dot-com bubble and the mobile revolution?
The Power of Distinguishing Between Market Bubbles and Revolutions
Knowing which stocks to avoid can help you know which ones to buy.
Essential Principles for 10-Bottom Stocks
Epilogue: Harmony and Balance Are the Keys to Investing
Detailed image
.jpg)
Into the book
These two groups also exist in the stock market.
For example, the number cruncher tribe becomes a "value investor," and the storyteller tribe becomes a "growth investor."
Damodaran hopes that Narrative and Numbers will empower number crunchers to create narratives that support valuations, and that it will empower storytellers to effortlessly translate creative stories into numbers.
In fact, because valuation connects the two sides, the storyteller identifies and corrects parts of the story that are implausible or unjustifiable.
And number crunchers can recognize when the stories they create from numbers don't make sense or lack credibility.
--- From "Chapter 1: The Most Important Questions for Investors"
In particular, it was KOSDAQ rather than KOSPI that was on fire in the second half of 1999.
At that time, everyone was excited about the new millennium, the 21st century, and excitement was especially high with the emergence of the revolutionary new product called the Internet.
It was a time when irrational exuberance literally ruled the world.
People are starting to forget about valuations like PER.
Did.
Stocks related to the Internet continued to rise endlessly, while companies unrelated to the Internet were lumped together as "smokestack industries" and were neglected, resulting in endless declines.
While Saerom Technology (now Solbon), which was in the red and had a PER that could not even be calculated, rose by 146 times, Lotte Chilsung, which was a chimney industry, fell to a PER of 0.8 times, showing an extremely polarized market.
--- From "Chapter 2: Great Giants and the Korean Stock Market"
The PER of an individual company formed in the market is primarily the market's assessment of the company's future growth potential.
Of course, that assessment could always be wrong.
The act of making money by exploiting the market's misevaluation is 'investment', assessing value is 'valuation', and the tool used to do the valuation is a 'valuation tool'.
Ultimately, what you should gain from this book is the ability to discern whether the current market price-to-earnings ratio (PER) for a company is high or low. Calculating the PER is easy.
The important thing is to develop the ability to interpret the implications of PER.
--- From "Chapter 3: You Need to Know the Valuation Tool to Make a Profit"
EV/EBITDA is mainly used to evaluate companies with large capital expenditures.
Companies with large facility investments face large depreciation
Rain is required, but in reality, this is only an accounting expense and does not result in actual cash expenditure.
Additionally, companies that rapidly increase their facility investment can be seen as having high growth potential. However, while building factories, these companies inevitably have a higher PER due to the burden of depreciation costs.
Therefore, EV/EBITDA is used to compensate for the high possibility that it may be misunderstood as being overvalued compared to reality.
It is important to remember that EV/EBITDA is much more useful than PER when comparing the investment attractiveness of companies within an industry, especially in industries with high capital investment.
Even in the secondary battery industry, where large-scale investments are currently being made, EV/EBITDA must be examined when comparing companies.
--- From "Chapter 3: You Need to Know the Valuation Tool to Make a Profit"
EcoPro stock, which was purchased on June 22, 2022, has risen more than 20-fold in just over a year, reaching its all-time high on July 26, 2023.
When I first discovered and purchased EcoPro, I thought it was the first time I had seen such a cheap stock, but it was also the first time I had seen it rise so much in such a short period of time.
But even that eco-pro didn't go up in price as soon as I bought it.
Before the market opened on June 29, 2022, news broke that LG Energy Solution was reconsidering the construction of a cylindrical standalone plant it had planned to build in Arizona, USA.
In fact, this plant was a relatively small plant with a capacity of 11 GWh, and it was not news that had any major impact.
Even the Ultium Cells plant, currently under construction in North America in collaboration with General Motors (GM), is expected to produce 110 GWh by 2025, so this is a very small plant, less than a tenth of that.
Nevertheless, the stock market reacted to this news with frightening intensity, as if it were some kind of terrible disaster.
--- From Chapter 4, “Why Did They Ignore Secondary Batteries?”
Buffett said, “If you’re not willing to own it for 10 years, don’t own it for 10 minutes.”
If you are considering investing, even if it is not for 10 years, please remember that the minimum investment period is 3 years.
I'd like to slightly modify Buffett's expression and say, "If you're not willing to hold it for three years, don't hold it for three minutes."
To be a three-year investment, a stock must possess a minimum of "greatness" and be clearly distinguishable from what many investors mistakenly believe to be "great."
For example, the number cruncher tribe becomes a "value investor," and the storyteller tribe becomes a "growth investor."
Damodaran hopes that Narrative and Numbers will empower number crunchers to create narratives that support valuations, and that it will empower storytellers to effortlessly translate creative stories into numbers.
In fact, because valuation connects the two sides, the storyteller identifies and corrects parts of the story that are implausible or unjustifiable.
And number crunchers can recognize when the stories they create from numbers don't make sense or lack credibility.
--- From "Chapter 1: The Most Important Questions for Investors"
In particular, it was KOSDAQ rather than KOSPI that was on fire in the second half of 1999.
At that time, everyone was excited about the new millennium, the 21st century, and excitement was especially high with the emergence of the revolutionary new product called the Internet.
It was a time when irrational exuberance literally ruled the world.
People are starting to forget about valuations like PER.
Did.
Stocks related to the Internet continued to rise endlessly, while companies unrelated to the Internet were lumped together as "smokestack industries" and were neglected, resulting in endless declines.
While Saerom Technology (now Solbon), which was in the red and had a PER that could not even be calculated, rose by 146 times, Lotte Chilsung, which was a chimney industry, fell to a PER of 0.8 times, showing an extremely polarized market.
--- From "Chapter 2: Great Giants and the Korean Stock Market"
The PER of an individual company formed in the market is primarily the market's assessment of the company's future growth potential.
Of course, that assessment could always be wrong.
The act of making money by exploiting the market's misevaluation is 'investment', assessing value is 'valuation', and the tool used to do the valuation is a 'valuation tool'.
Ultimately, what you should gain from this book is the ability to discern whether the current market price-to-earnings ratio (PER) for a company is high or low. Calculating the PER is easy.
The important thing is to develop the ability to interpret the implications of PER.
--- From "Chapter 3: You Need to Know the Valuation Tool to Make a Profit"
EV/EBITDA is mainly used to evaluate companies with large capital expenditures.
Companies with large facility investments face large depreciation
Rain is required, but in reality, this is only an accounting expense and does not result in actual cash expenditure.
Additionally, companies that rapidly increase their facility investment can be seen as having high growth potential. However, while building factories, these companies inevitably have a higher PER due to the burden of depreciation costs.
Therefore, EV/EBITDA is used to compensate for the high possibility that it may be misunderstood as being overvalued compared to reality.
It is important to remember that EV/EBITDA is much more useful than PER when comparing the investment attractiveness of companies within an industry, especially in industries with high capital investment.
Even in the secondary battery industry, where large-scale investments are currently being made, EV/EBITDA must be examined when comparing companies.
--- From "Chapter 3: You Need to Know the Valuation Tool to Make a Profit"
EcoPro stock, which was purchased on June 22, 2022, has risen more than 20-fold in just over a year, reaching its all-time high on July 26, 2023.
When I first discovered and purchased EcoPro, I thought it was the first time I had seen such a cheap stock, but it was also the first time I had seen it rise so much in such a short period of time.
But even that eco-pro didn't go up in price as soon as I bought it.
Before the market opened on June 29, 2022, news broke that LG Energy Solution was reconsidering the construction of a cylindrical standalone plant it had planned to build in Arizona, USA.
In fact, this plant was a relatively small plant with a capacity of 11 GWh, and it was not news that had any major impact.
Even the Ultium Cells plant, currently under construction in North America in collaboration with General Motors (GM), is expected to produce 110 GWh by 2025, so this is a very small plant, less than a tenth of that.
Nevertheless, the stock market reacted to this news with frightening intensity, as if it were some kind of terrible disaster.
--- From Chapter 4, “Why Did They Ignore Secondary Batteries?”
Buffett said, “If you’re not willing to own it for 10 years, don’t own it for 10 minutes.”
If you are considering investing, even if it is not for 10 years, please remember that the minimum investment period is 3 years.
I'd like to slightly modify Buffett's expression and say, "If you're not willing to hold it for three years, don't hold it for three minutes."
To be a three-year investment, a stock must possess a minimum of "greatness" and be clearly distinguishable from what many investors mistakenly believe to be "great."
--- From "5 Stocks to Buy and Stocks to Sell"
Publisher's Review
After doing a valuation, EcoPro came out!
Battery Man's new work, which he introduced as his 'masterpiece'
“I evaluated the valuation of EcoPro and EcoPro BM from an investor’s perspective, and I said that they were significantly cheaper than their value, so I believed that they would eventually rise.
What happened after that, you readers will know very well.”
-From the prologue
The author states that the purpose of this book is to help investors 'buy great companies at fair prices' through valuation, leveraging the know-how gained from discovering EcoPro and EcoPro BM.
Existing valuation books, despite their importance, focused solely on financial statement analysis, complex theories, and statistics.
However, this book is based on a fundamental understanding of domestic and international stock market trends and corporate value, and appropriately incorporates the author's experience.
It explains things in a way that investors can easily understand, and it also allows investors to apply the methods the author has proven in practice.
Above all, I pondered why valuation and investment are necessary, and what methods are necessary for successful investment, so that investors, who are swayed by stock price fluctuations, can maintain their composure. This book is the result of that consideration.
This book explores how to overcome the weaknesses of valuation indicators and develop the insight to assess a company's fair value, and explores where the next EcoPro might be.
Rather than simply evaluating a company's value based on the high or low PER and PBR indices, it provides insight into the company's fair value through understanding the market background and industry.
The author confidently introduced this book as “a masterpiece of my life, culminating in 30 years of investment experience,” and expressed his strong belief that this book would be helpful to investors.
Should I buy it now, why will it go down if I buy it?
Is it okay for secondary battery stocks to remain like this?
Investment Principles for Lost Ants
There is no eternal up or down in the stock market.
Even a market full of bad news does not continue to decline.
Rather, like the stock market adage that "stock prices climb the wall of uncertainty," they rise even amidst negative news and show volatility that is difficult to predict.
In order for investors to avoid sudden losses in this unpredictable stock market, they need to have sound investment judgment criteria.
The secondary battery recommended by the author also showed a sharp downward trend.
How should we deal with this bear market?
The author makes a painful confession that he has experienced two failures in the past.
In 1999, when the dot-com bubble was at its peak, I worked as an analyst in industries directly related to the bubble, such as telecommunications equipment, the internet, software, and games, but I was not prepared for the crash that followed the bubble burst.
The shock of that time also led to missed investment opportunities in the mobile revolution brought about by Apple and the bull market brought about by the liquidity boom.
However, thanks to two failed investments, the author developed an eye for distinguishing between bubbles and revolutions, and developed a steadfast standard that would not waver even in bear markets.
Therefore, when evaluating a company, we conduct thorough valuation and always ask the following questions:
-Are corporate profits increasing?
-Will the company's business model open consumers' wallets?
-Does it have a wide and deep moat?
Investors who properly assess valuations and know how to ask the questions above will be able to make wise investments when a bear market arrives, making informed decisions about whether to hold or sell their stocks.
Thanks to these principles, the author continues to invest without being shaken even in a bear market.
Investing with a short-term perspective cannot be successful.
Investments can only be profitable if you approach them from a long-term perspective.
However, the author does not say that long-term investments should be made with unconditional optimism or neglect.
His message is clear.
“For successful investing, distinguish between market bubbles and revolutions.”
And “do the valuation”.
Above all, valuation is the minimum weapon an investor must have.
Through this book, you will be equipped with the most basic yet safe weapon that will not be swayed by the ups and downs of stock prices.
Advice from great giants in stock market history
From understanding valuation to investing strategies
This book encompasses the author's investment experience, advice from legendary investment giants, the history of the stock market, and the characteristics of valuation tools, enabling investors to comprehensively understand and utilize valuation.
First, we get hints from how legendary investors such as Benjamin Graham, Philip Fisher, Warren Buffett, and Peter Lynch find corporate valuations.
Benjamin Graham, who systematized corporate valuation and spoke about the importance of value investing, and Philip Fisher, who emphasized the importance of a company's growth potential.
There is advice from Buffett and others to buy stocks of great companies at a fair price and not sell them unless absolutely necessary.
Although they had differences, what they had in common was their keen eye for business judgment and their long-term investment perspective.
Ultimately, to discover great companies (stocks) that will generate enormous profits, you need to carefully select them using various valuation tools and then buy them boldly.
Then, when the individual bad news of that company or the entire stock market crashes and everyone panics, if you endure that fear and buy more, you will be able to obtain great stocks.
'Buy with fear, sell with greed.' This is a common saying found in great classics.
The secret to success in investing is simple, but difficult to put into practice.
And this book will help you put that into practice and increase your chances of investment success.
Battery Man's new work, which he introduced as his 'masterpiece'
“I evaluated the valuation of EcoPro and EcoPro BM from an investor’s perspective, and I said that they were significantly cheaper than their value, so I believed that they would eventually rise.
What happened after that, you readers will know very well.”
-From the prologue
The author states that the purpose of this book is to help investors 'buy great companies at fair prices' through valuation, leveraging the know-how gained from discovering EcoPro and EcoPro BM.
Existing valuation books, despite their importance, focused solely on financial statement analysis, complex theories, and statistics.
However, this book is based on a fundamental understanding of domestic and international stock market trends and corporate value, and appropriately incorporates the author's experience.
It explains things in a way that investors can easily understand, and it also allows investors to apply the methods the author has proven in practice.
Above all, I pondered why valuation and investment are necessary, and what methods are necessary for successful investment, so that investors, who are swayed by stock price fluctuations, can maintain their composure. This book is the result of that consideration.
This book explores how to overcome the weaknesses of valuation indicators and develop the insight to assess a company's fair value, and explores where the next EcoPro might be.
Rather than simply evaluating a company's value based on the high or low PER and PBR indices, it provides insight into the company's fair value through understanding the market background and industry.
The author confidently introduced this book as “a masterpiece of my life, culminating in 30 years of investment experience,” and expressed his strong belief that this book would be helpful to investors.
Should I buy it now, why will it go down if I buy it?
Is it okay for secondary battery stocks to remain like this?
Investment Principles for Lost Ants
There is no eternal up or down in the stock market.
Even a market full of bad news does not continue to decline.
Rather, like the stock market adage that "stock prices climb the wall of uncertainty," they rise even amidst negative news and show volatility that is difficult to predict.
In order for investors to avoid sudden losses in this unpredictable stock market, they need to have sound investment judgment criteria.
The secondary battery recommended by the author also showed a sharp downward trend.
How should we deal with this bear market?
The author makes a painful confession that he has experienced two failures in the past.
In 1999, when the dot-com bubble was at its peak, I worked as an analyst in industries directly related to the bubble, such as telecommunications equipment, the internet, software, and games, but I was not prepared for the crash that followed the bubble burst.
The shock of that time also led to missed investment opportunities in the mobile revolution brought about by Apple and the bull market brought about by the liquidity boom.
However, thanks to two failed investments, the author developed an eye for distinguishing between bubbles and revolutions, and developed a steadfast standard that would not waver even in bear markets.
Therefore, when evaluating a company, we conduct thorough valuation and always ask the following questions:
-Are corporate profits increasing?
-Will the company's business model open consumers' wallets?
-Does it have a wide and deep moat?
Investors who properly assess valuations and know how to ask the questions above will be able to make wise investments when a bear market arrives, making informed decisions about whether to hold or sell their stocks.
Thanks to these principles, the author continues to invest without being shaken even in a bear market.
Investing with a short-term perspective cannot be successful.
Investments can only be profitable if you approach them from a long-term perspective.
However, the author does not say that long-term investments should be made with unconditional optimism or neglect.
His message is clear.
“For successful investing, distinguish between market bubbles and revolutions.”
And “do the valuation”.
Above all, valuation is the minimum weapon an investor must have.
Through this book, you will be equipped with the most basic yet safe weapon that will not be swayed by the ups and downs of stock prices.
Advice from great giants in stock market history
From understanding valuation to investing strategies
This book encompasses the author's investment experience, advice from legendary investment giants, the history of the stock market, and the characteristics of valuation tools, enabling investors to comprehensively understand and utilize valuation.
First, we get hints from how legendary investors such as Benjamin Graham, Philip Fisher, Warren Buffett, and Peter Lynch find corporate valuations.
Benjamin Graham, who systematized corporate valuation and spoke about the importance of value investing, and Philip Fisher, who emphasized the importance of a company's growth potential.
There is advice from Buffett and others to buy stocks of great companies at a fair price and not sell them unless absolutely necessary.
Although they had differences, what they had in common was their keen eye for business judgment and their long-term investment perspective.
Ultimately, to discover great companies (stocks) that will generate enormous profits, you need to carefully select them using various valuation tools and then buy them boldly.
Then, when the individual bad news of that company or the entire stock market crashes and everyone panics, if you endure that fear and buy more, you will be able to obtain great stocks.
'Buy with fear, sell with greed.' This is a common saying found in great classics.
The secret to success in investing is simple, but difficult to put into practice.
And this book will help you put that into practice and increase your chances of investment success.
GOODS SPECIFICS
- Date of issue: May 31, 2024
- Page count, weight, size: 256 pages | 468g | 148*217*20mm
- ISBN13: 9788947549561
- ISBN10: 8947549568
You may also like
카테고리
korean
korean
![ELLE 엘르 스페셜 에디션 A형 : 12월 [2025]](http://librairie.coreenne.fr/cdn/shop/files/b8e27a3de6c9538896439686c6b0e8fb.jpg?v=1766436872&width=3840)
