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By Author: 불곰
Photograph credits: N/A
The author reflects on imparting stock investment lessons to his two daughters, now university students, since their elementary years. He presents four compelling reasons why this early education in stock investment proved to be a wise decision.
The notion of "liberation from capital" here refers not to abandoning capitalist society but to making choices unconstrained by financial limitations. Unless one leads a monastic life, some degree of financial freedom is essential for a happy life. The author wishes for his daughters to maintain their dreams without being compromised by financial constraints. An ostensibly "safe life" with a large corporation does not guarantee solving life's issues or ensuring happiness. True happiness lies in striving for and fulfilling one's dreams, which parents naturally wish to protect.
In a capitalist society, realistically, achieving liberation from capital is the method to protect dreams. The wisdom frequently cited from the Talmud—"Teach a man to fish"—is interpreted as teaching one how to earn rather than handing over money. Warren Buffett resonated with this by asserting that his smart children won’t need his inheritance, while incapable ones couldn’t manage it, making it a poison to them.
Summarizing both insights: it's wiser to teach children how to accumulate wealth than to simply pass it down. The stock market, likened to a sea teeming with fish, offers the method of fishing through stock investments. Regardless of their future careers, if the daughters can gain extra income from stocks, liberation from capital may well be achievable. It complements full-time work, can be started with modest funds, and offers high liquidity, making stock investments an optimal means for economic freedom.
Through learning stock investment, the daughters were naturally engrossed in economic studies. When one's own money is "at stake," the interest becomes inevitable. In August 2010, the daughters opened stock accounts, being detailed on six companies. Their investments sparked curiosity about each chosen business, leading to studies on performance, dividends, general meetings, capital, assets, liabilities, and more, extending to economic factors like exchange rates, inflation, and broader economic trends.
Without these investment lessons, such educational engagement would have been absent. Otherwise, economic education, devoid of tangible connections, would merely seem like redundant nagging to children.
Between a child buying toys and one investing in stocks, who is likelier to appreciate their parents more later in life? The answer is obvious: the latter. Saving and spending are crucial lessons, but enhancing funds constitutes true wealth management. Wise parents should prioritize teaching investment strategies over preoccupation with inheritance. A child adept in financial growth would thrive without receiving any inheritance.
Learning early aids the establishment of a sound investment philosophy. With a blank slate free from misconceptions, children can embrace effective investment strategies. In investing, avoiding short-term trading is key, and children naturally lean towards long-term investments, free from financial pressures.
At a stage where toys are preferable to stocks, and parents’ allowances suffice, there's minimal stress over waiting. Teaching lifelong financial strategies is, perhaps, the ultimate high-yield investment. Upcoming issues will explore investment pitfalls, company valuation methods, U.S. fund types, and practical U.S. stock strategies.
After securing capital through successful stock trading five times during a seven-year tenure at Samsung C&T Corporation, the author studied film production at the New York Film Academy. In 2010, he founded Bulgom Stock Lab (www.bulgom.co.kr) to transform Korea's stock investment culture. Over a decade, the site demonstrated investment methods, emphasizing stable investments, family happiness, and dedication to primary careers rather than chasing short-term gains. An average sales yield of 55% across 83 sales subjects over 114 months underscores this philosophy. Currently, U.S. stocks are also lectured through the site.
