The late Chairman Shin Jin-oh has rewritten his immortal masterpiece!
Revised edition released with updated information and latest strategies

A revised edition of the late Chairman Shin Jin-oh's famous book, "Strategic Value Investing," has been published.
First published in 2009, this book covers all investment concepts and techniques, including value investing, growth investing, and dividend investing. It has been evaluated as the only "classic investment book" in Korea.

This revised edition was published by analyst Lee Sang-min, who updated the data and updated the techniques after Chairman Shin Jin-oh passed away in 2022.
Since the publication of the original edition, investment strategies that had lost their effectiveness during the 2008 financial crisis and the COVID-19 crisis have been cut out, and newly developed investment strategies have been added.

These days, the Korean stock market is considered to be entering a period of transformation.
This book shines even brighter in these times, offering investment methodologies applicable regardless of time or market.
If you want to develop the ability to view the stock market in a three-dimensional way, this is a must-read.

This book is largely divided into three parts: beta investment strategy, alpha investment strategy, and theta investment strategy.
First of all, 'beta investment strategy' refers to an investment methodology that protects against market risk or maximizes profits according to market trends.
'Alpha investment strategy' is a stock selection methodology that selects superior companies within the same theme.
In the old version, it was expressed as a 'value investment strategy', but in the revised version, it was named an alpha investment strategy because the value investment strategy ultimately analyzes individual corporate factors, which can be said to be the first element (α) of stock prices.
The 'three-stage investment strategy' is an investment strategy based on life cycles, and is not covered in detail in the previous edition.
This is an investment strategy that comprehensively considers the investor's lifetime income, initial capital, inflation, retirement funds, and life expectancy. It is a strategy that individual investors must be familiar with, even if they do not adopt it.
---From the "Preface to the Revised Edition"

Stock price movements can be analyzed from various perspectives, some of which are widely known.
The first is the ‘movement of the stock price just before’.
After testing various figures and exploring which figure had the highest correlation with stock prices, interestingly enough, the most important figure in determining the direction of stock prices was the 'previous stock price movement'.
In other words, if the stock price rose just before, it can be predicted that the stock price will rise again this time, and this possibility is more likely to be correct than any other indicator that reasonably explains the stock price movement, such as corporate performance or economic indicators.

---From "Chapter 1 Understanding Stock Investment"

In his book, "3 Questions to Beat the Market," Ken Fisher points out that investors put too much effort and attention into stock selection, but neglect to consider the proportion of their stock holdings.
When building an investment portfolio, the biggest consideration is deciding how much stock to hold.
Ken Fisher stated that asset allocation considerations such as stocks, bonds, and cash account for 70% of overall investment performance.

---From "Chapter 2 Beta Investment Strategy"

Understanding the 'value of a stock' ultimately leads to understanding the 'value of a company.'
While the value of a stock is influenced by factors other than the company's value, such as market sentiment, no investor would disagree that the company's value is the most influential factor.
To properly judge a company's value, you must be more knowledgeable about the company's circumstances than its executives and employees.
Just as a doctor who performs a comprehensive examination knows a patient's body better than the patient himself, investors should be more knowledgeable about the company's affairs than its internal members.
In fact, in industrial settings, there are cases where business managers come to analysts to learn about the specific circumstances of their companies.

---From "Chapter 3 Alpha Investment Strategy"

We often hear that we should enjoy the benefits of welfare from a young age.
Then, in the case of a 9th grade civil servant, if the lifetime income is discounted to present value, it comes to approximately 620 million won.
Then, it is necessary to ask whether it is really beneficial to take out a loan of 120 to 150 million won, which is 20 to 30% of one's lifetime income, when one is just starting out in society and invest it.
In theory, if the loan interest rate is 5% and the investment return is 9%, we can make a profit of 4% per year (investment return 9% - loan interest 5%).
Therefore, if you invest by discounting the expected future income to the present value as a 'debt investment', it is equivalent to securing an additional 4% return on investment each year, and if this profit is accumulated through compound interest for 30 years, it makes a big difference.

---From "Chapter 4: The Three Self-Strategies"

According to what we've seen in our alpha investment strategy, if it's difficult to compare the intrinsic value of a portfolio comprised of multiple stocks, simply maintaining equal weightings can yield surprisingly high investment returns.
Furthermore, as we have seen in our beta investment strategy, simply maintaining a certain proportion of stocks and cash, without using complex techniques, can have a significant improvement effect.
Select at least five blue-chip stocks with a very low risk of default, then invest equally in each stock.
And keep the stock investment ratio among the total investment assets at 50%.
This shouldn't be too complicated or difficult.

---From "Chapter 5 Strategic Value Investment"