Why American stocks?

If you were to summarize the characteristics of American stocks in one sentence, it would be that they are safe and easy to invest in.

I will explain in detail below why investing in American stocks is safe, easy, and a good investment to take with you for life.

Understand the characteristics of American stocks.

The biggest characteristic of American stocks is that their annual charts are consistently trending upwards. The three major indices of the US stock market, the SNP 500, Dow Jones, and NASDAQ, are all trending upwards on their annual charts. If you compare them to the annual charts of the Korean KOSPI and KOSDAQ indices, the difference is clear. Just looking at these charts, it's clear why anyone who invests long-term in high-quality American stocks is bound to succeed.

Invest in the American economy, which drives sustainable growth.

I think everyone would agree that the US economy is the safest and most sustainable growth driver in the world. The US leads the world in all fields, not just economics. If we were to be anxious about the US economy, we wouldn't be able to invest in any country in the world. I am confident that investing in safe American stocks will never lead to ruin.

Pay attention to the trends of the US market, the source of cutting-edge technology.

The United States is the starting point for all cutting-edge technologies. New technologies spread from the US to the rest of the world. That's why investing in the stocks of companies that are just starting to develop their technologies in the US, that is, investing at the beginning, can maximize profits.

Recognize that it is an honest market that is not manipulated by big players and moves solely on market principles.

From my experience in the Korean market, I have found that retail investors are always behind the curve and have a very high chance of losing money. In contrast, the US is an honest market that is not manipulated by big players and moves solely on market principles. I think those who have invested in Korean stocks have felt this enough. If the US market is a real investment destination, the Korean market could be considered a speculative destination. I have invested in Korean stocks before, but in the end, I have experienced too many times that individuals are always sacrificed in the game of big players or institutions or foreigners. I have decided to stop investing in Korean stocks now.

Don't look at the trees, look at the forest. (Don't focus on daily and weekly charts, but always make decisions based on annual charts.)

Don't look at the trees, look at the forest. Don't get caught up in daily and weekly charts, but always take action based on annual charts. You see, when you invest in stocks, the more impatient you are, the younger you are, and the less experience you have in the stock market, the more you see examples of people who are sad, angry, happy, and so on about the daily movements of stocks. But the important thing is not the movement of a day or a week. The world doesn't change and there's no big change in a day or two. If you look at annual charts instead of daily or weekly charts, especially if you look at high-quality American stocks that are consistently trending upwards, you'll realize, "Ah, this is the place to invest!"

Don't overlook the fact that the annual charts of the three major US indices (DOW JONES, S & P 500, NASDAQ) have been trending upwards for decades. Especially understand the difference from KOSPI and KOSDAQ.

The annual charts of the three major US indices, Dow Jones, S&P 500, and Nasdaq, have been trending upwards for decades. If you look at the difference from KOSPI and KOSDAQ, you'll find the answer right away. You'll realize that American stocks are the place to invest for the long term, for generations to come.

Keep in mind that when the stock index or blue-chip stocks are in the red, a great opportunity has come.

Keep in mind that when the stock index or blue-chip stocks are in the red, a great opportunity has come. They say that last year, 2020, was a once-in-40-years opportunity. I've experienced the IMF, Lehman Brothers, and the Corona crisis over the years, but I was inexperienced back then, so I didn't buy stocks that were at rock bottom prices, and I even cut my losses. I acted like an inexperienced beginner. But now I realize that no matter what kind of disaster comes, if I invested in something like high-quality American stocks, I would have been able to use that opportunity to buy at a low price and get a big reward later. Don't forget this truth.

Set your own principles and criteria.

If you follow the principle of long-term investing in high-quality American stocks and use the strategy of buying on dips to lower your average price, your market performance will improve. To implement this strategy, you need to prepare for it. For example, you can hold 30-40% of your total funds in cash so that you can buy more stocks on dips. If you don't have the money, a trick of the trade is to gradually sell 1-2% of your holdings each day during a good market to raise cash. But you should always keep at least 50% of your holdings in stocks, even in the worst-case scenario.

Make defensive investments, not offensive investments.

The less experience you have with stocks, the more you tend to buy into the hype when the price goes up. I don't buy stocks anymore when they're going up. When stocks are going down, nobody knows what the bottom is. It's in the realm of the gods to know that. So, when you think a stock has gone down a lot, you should set a rule for yourself to buy at a certain percentage drop, and if it drops further, you should gradually increase your investment ratio. If you create and stick to this principle, you will reap the rewards in the future.

The goal of long-term investing is to catch two birds with one stone: safety and growth. If you have to invest in something that really needs money, you can sometimes sell stocks. But if not, you should stick to the principle that once you invest in US stocks, you should never sell, even if you invest a small amount.

People who are impatient, have little experience in stocks, and are young tend to not invest for the long term, getting anxious about daily fluctuations, getting excited, angry, cutting losses, and leaving the market. But as I said before, US stocks are a market you can trust for the long term, so you have to stay here for your whole life. Long-term investment means that you should never sell unless you need money, but keep it until you die, and create an environment where your children can continue to invest in the next generation. You need the wisdom and strategy to do this.

We often forget, but as the price of our stocks goes up and dividends are paid out, the principal is increased by that amount the following year, so we get compound interest. We often forget, but years later, we realize that our money has increased by multiples. And American stocks also generate profits from exchange rate differences when the dollar is strong.

In my case, I only invest in companies with a market capitalization of 1-10, and among those, I invest in technology and innovation companies. Why? Because the higher the market capitalization, the more stable the company is, and when innovative technologies like AI come out, like NVIDIA shares recently, the stock price skyrockets and grows tremendously. The tech sector is the area that can create such sweet fruits, so I mainly invest in this sector.

Wrap up

The three principles of investing in US stocks: 1. Buy good stocks, 2. Buy them cheap, 3. Hold them for life.

In summary, all the things I've explained can be summed up in one sentence: buy good American stocks, buy them cheap, and hold them for life. I hope this helps with your investment.

Thank you.