2026-07-21
My Journey into US Stock Investment
The author started investing in US stocks and ETFs in June 2021, shifting from Korean stocks due to the US market's stronger dividend culture and better protection of shareholder interests.
Hello. Since June 2021, I have been investing exclusively in US stocks and ETFs listed on the US stock market through a domestic brokerage firm. It's still a small amount. I largely divested from Korean stocks in February 2022. When I mentioned that I had cleared out all my Korean stocks in February 2022, everyone assumed I knew something and made a timely exit. However, the truth is, my economic knowledge is still quite limited, and I'm merely at the level of subscribing to various economic YouTube channels, just like many of you.
As I started investing in US stocks, I noticed that dividends came in regularly. As someone who had bought Korean stocks for many years, I was aware of dividends, but Korean companies often paid a paltry amount or none at all, so I didn't attach much significance to them. Therefore, my goal was usually to realize profits through capital gains. Of course, if I bought high, I often found myself stuck and experienced the path to ruin. However, I became quite interested in US stocks because dividends came in more frequently and in larger amounts than I expected, and I began reading various related books.
Without delving into difficult details, the most important reason I invest in US stocks is that US-listed companies properly fulfill their role as corporations that do not disregard the interests of shareholders, even minority shareholders. Furthermore, many US companies buy back and retire their own shares, leading to the simultaneous growth of stock prices and company value. The moment a company owner goes public and issues shares on the stock market, that company is no longer the private property of the owner but a company of its shareholders. It seems our country still has a long way to go in many respects. The structure where businesses are run with other people's money (shareholders' money), with no interest in stock prices, and where the majority of profits are taken by major shareholders (or existing owners) is still prevalent. I realized that the Korean market itself is essentially a speculative market focused on capital gains rather than value investing. I would like to credit the strength of the US, which maintains the world's best capital market to this day, to US companies' efforts to uphold the fundamental rules I mentioned earlier.
Frequently Asked Questions
When did you start investing in US stocks?
The author started investing in US stocks and ETFs listed on the US stock market through a domestic brokerage firm in June 2021. The article mentions that they are still investing a small amount.
Why did you divest from Korean stocks?
The author largely divested from Korean stocks in February 2022. While Korean stocks often offered small or no dividends, leading to a focus on capital gains, the author found greater appeal in the dividends and protection of shareholder interests offered by US stocks.
What is the most important reason for investing in US stocks?
The most important reason is that US-listed companies properly fulfill their role of not disregarding the interests of shareholders, even minority shareholders. The author also stated that the fact that many companies buy back and retire their own shares, leading to the simultaneous growth of stock prices and company value, is also important.
How do you evaluate the problems of the Korean stock market?
The author evaluates that the Korean market is plagued by a structure where businesses are run with other people's money, with no interest in stock prices, and where major shareholders take most of the profits. It was mentioned that the market essentially has the nature of a speculative market focused on capital gains rather than value investing.
What is the strength that allows the US to maintain the world's best capital market?
The author believes that the efforts of US companies to respect the interests of minority shareholders and to uphold fundamental rules, such as buying back and retiring shares to increase stock value, are the source of this strength. This corporate culture is seen as enabling the world's best capital market.