It rose to number one on the comprehensive bestseller list immediately after its publication.
The sequel to the first one is out!

The sequel to the introductory stock book, "Top 77 Questions Investors Want to Know Most," which immediately rose to the top of the general bestseller list upon publication, has been published after two years.
Although the difficulty level has increased compared to Part 1, it has been explained in an easy-to-understand manner.
This book focuses on topics that beginners in the stock market absolutely need to know, but that couldn't be covered in Part 1, as well as topics that individual investors asked the most questions about.
At a time when over 100 trillion won was flowing into the stock market and many people began to enjoy watching and listening to stock investment information broadcasts, the author, Director Seung-Hwan Yeom of IBK Investment & Securities, was nicknamed "Yeombli" and was much loved by young people.
The author has also studied a lot on his own to write a more complete book following the first installment.
Because I wanted to help readers make successful investments with better information as I studied more.


This book covers essential topics for beginners in the stock market, but the author argues that stock investing isn't just about theory.
It is important for each investor to gain experience by trying it out themselves.
The stock market is one where you can suffer losses no matter how many books you read and how thoroughly you understand the content.
Stock investment can be perfected through the accumulation of knowledge and insight gained through books, as well as through countless choices and trial and error.
This book will serve as a small stepping stone to complete your journey of stock investment.

There is no right answer in a diverse portfolio.
Everyone has their own investment style.
You might think, 'Since Warren Buffett is successful, his portfolio must be correct and I can just follow it.'
But Warren Buffett's investment knowledge, cash reserves, and investment style are Warren Buffett's.
You are not Warren Buffett.
It's important to find your own style and structure your portfolio to fit it.

--- p.27~28

The English word 'macro' is a prefix meaning 'large'.
You can think of it as meaning big.
'Micro', on the other hand, means 'small', so you can think of it as small.
Macro is one of the most common terms used in the stock market, and in a broad sense, it refers to the economic situation.
All of the various indicators that can be used to gauge economic conditions, such as prices, interest rates, exchange rates, exports, imports, trade balance, economic growth rate, unemployment rate, central bank monetary policy, and government policy, can be called macro.
Micro refers to something related to business, as in 'small'.
Performance, paid-in capital increase, orders, and facility investment are indicators related to micro-businesses.

--- p.61

Interest rates have a significant impact on major asset markets, including the stock market. They can be thought of as "gravity."
If the Earth were weightless, our bodies would continue to float lightly.
Conversely, if gravity is strong, our bodies will become heavier and stick closer to the ground.
When interest rates, or gravity, weaken, asset prices rise.
The value of many assets, including stocks, real estate, and cryptocurrencies, will rise.
During the height of the COVID-19 pandemic in 2020, central banks around the world, without exception, significantly lowered their benchmark interest rates.
As interest rates fell sharply, the value of money plummeted, while the prices of real assets such as stocks and real estate soared.
In March 2020, the KOSPI plummeted to the 1,400-point range, but rose 100% to 2,800 points in December 2020, driven by interest rate cuts, government disaster relief payments, and the resulting increase in consumption.
2020 was one of the most exciting years in the history of financial technology, a time of weightlessness as the value of various assets, including real estate, cryptocurrencies, and art, rose simultaneously.

--- p.74~75

The dollar has a unique characteristic compared to other currencies: it is the world's safest asset.
The dollar is the reserve currency.
A reserve currency is a currency that serves as the basis for international payments and financial transactions.
The dollar is a powerful currency that can be used anywhere in the world, and crude oil transactions can only be made in dollars.
That is why, when a crisis occurs, demand for the dollar, a safe asset, surges, causing the value of the dollar to rise.
The dollar index, which was hovering around 70 points in early 2008, soared by 27% to 89 points when the global financial crisis broke out (even though the crisis originated in the United States).
Even though the U.S. economy was in shambles, the U.S. dollar, the U.S. currency, soared.
This is because of the belief that 'there is no asset safer than the US dollar.'

--- p.83~84

The 'Four Seasons of the Stock Market' is a theory developed by Japanese investor Kunio Uragami, which explains market conditions by displaying the stock market cycle by season.
Kunio Uragami expressed spring as a financial boom.
Although the economy is not doing well, there is a lot of money in circulation, and stock prices are rising due to the power of liquidity.
Summer was expressed as a performance boom.
This is the period when corporate profits increase as money is released, demand increases, and the economy improves.
Autumn was expressed as a reverse financial market.
When prices rise and the economy overheats, asset market bubbles can form, so central banks raise interest rates to withdraw liquidity.
This is the section where the released money is collected again.
Winter was expressed as a reverse market.
This is a period in which corporate performance declines significantly as interest rates rise significantly due to austerity policies, money disappears from circulation, and demand slows.

--- p.96~97

As the second half of 2022 began, the stock market was in the grip of winter.
Pessimism was supported by individual investors, and there was frequent talk that the KOSPI would break the 2,000 point mark.
However, prices in the US have peaked and started to decline, and China has started to abandon its zero-corona policy and change direction to a reopening policy.
The US Federal Reserve has slowed its pace of interest rate hikes, and there are even projections that it will hold rates steady in the spring of 2023.
Spring, that is, the financial market, was showing signs of beginning.
Some investors, ignoring the pessimism and preparing for the coming spring, began buying stocks that were trading cheaply, remembering the past spring.
In 2023, real spring came.
Winter suddenly disappeared without a word.
Of course, interest rate hikes continued into the first half of 2023.
But the pace of interest rate hikes slowed, and by June 2023, the US Federal Reserve had frozen its benchmark interest rate for the first time in 1 year and 3 months, signaling the arrival of spring.

--- p.119~120

It is very important to know how stock prices move.
You need to have a clear understanding of the properties that drive stock prices, along with valuation.
You also need to determine whether the increase is due to the company's performance or the increase in the PER, and whether these factors are reflected in the stock price increase.
Also, if news comes out that could turn your expectations into disappointment, you should definitely call the company directly to confirm the facts.
If true, the stock price could plummet as the PER falls significantly.
Just buying and waiting for it to rise is not investing.
Companies and stock prices change every day like living organisms.
Investors should continue to monitor and verify such changes.

--- p.164

Why is the stock market so volatile? Because of this volatility, Warren Buffett even called it "Mr. Market."
As Warren Buffett says, the market is truly fickle.
Mr. Market, who had been expecting an end to rate hikes, changed his mind and forgot about the past when the jobs data came out so well.
The KOSPI, which had been rising on concerns that austerity measures would continue, began to weaken in February, and the Nasdaq fell by ~3%.
The path of monetary policy can also be adjusted at any time as economic indicators deviate from expectations.
You might think the market is fickle, but Mr. Market is actually a very mean-spirited man.
Investors should accept these market volatility as a given.
In fact, these fluctuations create stock price volatility, and this volatility provides investors with opportunities to buy stocks at low prices.

--- p.182

Comparing the industry average PER with an individual company's PER is essential before investing.
Understanding why Samsung Electronics is trading so cheaply and what conditions are necessary to overcome its undervaluation will help you identify investment opportunities for the company.
Conversely, if you consider why Nongshim is trading at a high price, whether the high valuation is reasonable, and what conditions can sustain the high valuation, you will be able to find the right answer.

--- p.194~195

A second characteristic of the Korean stock market is that many companies that are sensitive to economic conditions are listed there.
Korea is a manufacturing powerhouse.
Manufacturing accounts for a much larger proportion of market capitalization than the service industry.
As of December 12, 2023, the KOSPI market capitalization is 2,026 trillion won, with the manufacturing sector accounting for 71% of the market capitalization at 1,432 trillion won.
Many manufacturers listed on the Korean stock market are mostly companies that produce intermediate goods, such as semiconductors, IT components, petrochemicals, oil refining, steel, and machinery, which are used as materials or equipment to make finished products.
Even among manufacturers in the electrical and electronics industries, such as semiconductors and IT, their share of the KOSPI market capitalization reaches a whopping 37%.
Intermediate goods companies are very sensitive to economic conditions.
When the economy is booming, you can make a lot of money, but when the economy is recessioning, you can run a deficit.
Because it has many cyclical stocks listed on it, the KOSPI index is sometimes called the "giant cyclical stock."

--- p.232~233

A fourth characteristic of the Korean stock market is that the KOSPI index moves inversely to the value of the dollar.
It does not necessarily mean that when the dollar rises, stock prices will fall, and when the dollar falls, stock prices will not necessarily rise.
However, it is true that the Korean stock market is particularly sensitive to dollar movements.
The correlation coefficient between the KOSPI index and the dollar value is ~0.8.
This means that when the dollar value falls, there is an 80% chance that the KOSPI will rise.
If you can predict the direction of the dollar, you can also predict the direction of the Korean stock market to some extent.
The value of the dollar is determined by several factors, the most significant of which are the relative strength of the U.S. economy and U.S. monetary policy.

--- p.242

Business structure analysis is the analysis of the source of a company's cash flow, that is, the core business (which determines the stock price) that accounts for the largest portion, and whether the industry to which that business belongs can grow steadily.
Just like the famous line from the movie [Friend], "What does your father do?", the answer to the question, "What kind of company does this company do?" is business structure analysis.
Investing in stocks means becoming a shareholder and partner in that company.
If a partner doesn't know exactly what the company he's invested in does, his investment will be blind money.
It is fundamental to understand what business you are in, whether it is doing well, and whether it will continue to do well in the future.
Also, understanding a company through business structure analysis is called qualitative analysis.

--- p.269

There is no such thing as a magic bullet that guarantees unconditional profits in stock investment.
There is no magic trick that can be applied to stock investing.
Stock price is a scale that represents the value of a company.
As the value of the company increases, the weight will increase, and as the value of the company decreases, the weight will decrease.
There are several factors that determine the value of a company.
Hidden cards are also one of the important factors that determine a company's value.
Investors can achieve high performance simply by identifying and analyzing a company's hidden cards through public disclosures and investing accordingly.
Success in investing is not far away.
You can achieve great results simply by checking electronic disclosures and making reasonable predictions.

--- p.310~311

Warren Buffett also said, "A company with a high ROE but a lot of debt cannot be said to have a competitive advantage."
While it is acknowledged that profits increase through equity capital and the resulting increase in ROE, it is important to be cautious about increasing ROE by increasing debt.
Even in the real stock market, companies with high ROE but high debt are not highly valued.

--- p.352

If an investor has more information than others (provided that information is accurate, of course) and can reasonably envision the future value of a company based on that information, he or she will be in a better position to make investments.
It is actually not easy for individual investors to obtain information.
Attending visits or seminars like institutional investors is not as easy as it sounds.
That's why securities firm reports are essential for individual investors.
Reports written by securities analysts contain a variety of information.

--- p.383