Choi Jun-cheol and Kim Min-guk, VIP asset managers who manage over 3 trillion won
The Value Investing Bible Finally Revealed

『Korean Value Investing』 is the third installment of the value investing series, following 『Korean Value Investing Strategy』 and 『V Chart: Making Value Investing Easy』.
While 『Korean Value Investing Strategy』 focused on the concept of value investing and proper stock selection, and 『V Chart: Easy Value Investing』 focused on financial statement interpretation techniques, 『Korean Value Investing』 rewrites the basics of value investing from scratch, while minimizing content overlap with previous works as much as possible.
Also, because the difficulty of investing has increased compared to the past, we took care to provide as detailed instructions as possible, as if digging a tunnel to find gold nuggets.
To enhance the validity of the theory, to make the explanation easier, and to double the fun of reading, I tried to incorporate as much insight and know-how as possible from my own experience.
This is a must-read for investors who wish to value invest in the Korean stock market.

The global spread of infectious diseases was a first for modern humans.
So, no one could guarantee how far the impact of the coronavirus would extend.
Crude oil futures prices even fell into negative territory amid fears that global economic activity would grind to a halt.
Faced with the coronavirus that threatens our lives and our very foundations, humanity trembles in collective fear.
But in the end, the world did not end.

---p.25

Value investors view crises based on reason, rooted in modern and contemporary history, rather than on instincts ingrained in their genes.
It is an empirical fact that capitalism has the ability to heal itself.
In other words, this means trusting in the human will and ability to overcome crises.

---p.27

Value investors are a group that persistently pursues cost-effectiveness in the stock market.
We constantly strive to find the intersection between above-average good companies and below-average low prices.

---p.44

Graham added a word to his definition of value investing: if any of the following criteria are not met: thorough analysis, stability of principal, or reasonable returns, it is considered speculation.

---p.50

A good business model has the characteristic of high output relative to input, like a horse that gains muscle even when eating little.
In other words, if more profits are generated with the same amount of capital, shareholders can expect a rapid increase in corporate value.
If the same thing happens every year, the difference will only grow bigger over time.

---p.68

We argue that the role of management is crucial when considering long-term investments.
I've seen videos like this on YouTube.
Hospital ambulance drivers drive sleek supercars, while top-class racer Vettel drives heavy ambulances.
What happened to the win or loss?
---p.82

Just as an album becomes a huge hit if both the tracks and the title track are good, if you are lucky enough to see both the profit and PER increase after purchasing, you will generate significant profits.
Value investors start buying at low PER ranges, so they initially enjoy stock price appreciation only as earnings grow.

---p.100

When you look at a lot of stocks, there are often times when the hidden asset value is so great that it becomes an investment idea ahead of the profit value.
This applies to companies with a lot of real estate, such as paper and textile companies, or when their subsidiaries are more profitable than the parent company.
Another method is to closely examine the asset value and compare it to the market capitalization to determine whether it is undervalued.

---p.113

We further categorize good stocks into four baskets based on the sustainability and slope of their growth, the degree of undervaluation, and factors that could trigger a price reversal.
This is because it makes it easier to decide which direction to take when you come across an investment idea.

---p.121

For value investors, it is extremely painful to fall into a value trap state where it is difficult to expect value to be realized.
I remember feeling frustrated, like eating a sweet potato, at Nexen (Nexen Tire's parent company), which was extremely undervalued to the point that it was considered the cheapest in the market, but had no catalyst whatsoever.

---p.141

A value investor's investment ideas largely stem from clearing up misunderstandings and the potential for change.
In the former case, determining whether the message the market is sending is valid or false becomes the core of stock analysis.

---p.155

When I first heard the name that reminded me of stocks, I thought that maybe I was born with the destiny to become a stock trader.
Since then, I have become a long-time stock manager in charge of IR for the largest company in our country for nearly 10 years, so I thought we weren't joking around for nothing.
---p.168

Contrary to market concerns, the monopoly remained intact, and although new simulator sales were declining, this was offset by replacement demand from existing owners.
Moreover, in the meantime, network services were introduced, showing signs of moving away from the one-time sales model, which we had seen as our greatest weakness.

---p.181

'Ttasang.' This is the magic spell that has captivated investors for the past two years.
How could anyone resist the easy allure of a 2.6x increase when the stocks for which public offerings were subscribed started at a flat opening price and closed at the daily limit as soon as they were listed?

---p.238

In 2001, while I was preparing to return to school after completing my military service, I stumbled upon a striking analysis article on a value investing community called 'New Eye'.
I was interested in the subject, so I had a general idea of ​​the content, but I was truly amazed that a company was completely dissected and its core concepts were explained in such easy language.

---p.260

I am a very curious person.
My hobby is food, and the reason I prefer buffets over a la carte is because I am curious about the taste of various foods.
This curiosity led to investment.
For me, investing is the best hobby and job that endlessly satisfies my curiosity.

---p.276

Becoming an expert is not the end.
You have to invest a lot of time to maintain your skills.
If you let your guard down even a little and become lazy, you will quickly lose your touch.
That's why I emphasize setting high standards for myself and sticking to my own routine.

---p.282