|Mirae Asset Financial Group founder Park Hyeon-joo appears on Mirae Asset's YouTube channel on Thursday. / Courtesy of Mirae Asset Daewoo|
EV, cloud computing, semiconductor, green energy, bio, game sectors recommended
By Anna J. Park
Mirae Asset Financial Group founder Park Hyeon-joo, who is also global investment strategy officer (GISO) of the group's brokerage arm Mirae Asset Daewoo, made a rare appearance on YouTube on Thursday, sharing his investment philosophies as he discussed long-term investment strategies with the firm's stock analysts.
In the two videos released on YouTube Thursday and Friday, the financial mogul and the analysts talked about key sectors that are expected to log substantial growth in the near future, namely electronic vehicles (EV) and EV batteries, semiconductors and cloud computing. The green energy, e-commerce, game and bio sectors are also recommended for retail investors' attention for their further growth potential.
In the video, the financial giant's founder stressed that he's always interested in so-called "disruptive innovation" in investment decisions.
"While analysts divide companies into either growth or value sectors, I don't see that way. What I see instead is whether a company innovates itself or not," the group chairman said.
"There are two types of firms: companies that innovate themselves and those that do not innovate. That's why I recommended to invest in companies like Tencent, Amazon and Tesla back in late 2015, as they were examples of innovative businesses," he explained, adding that while some people just understood that comment as a recommendation of specific company investments, what he really meant was that investors need to put their money into companies that conduct complete innovation.
The chairman also advised investors to see the future with a long-term perspective. He said he thinks sectors with a high growth potential ― like the cases of EVs, semiconductors and cloud computing ― will continue to thrive despite negative short-term macroeconomic situations.
For instance, the chairman and stock analysts pointed out that cloud computing sectors are forecast to log a 20 percent annual increase in the next few years, and companies with a competitive edge in the industry are expected to see structural, steady growth.
Semiconductor sectors are also expected to see steady high demand, given the global economy's focus on developing the latest technologies in autonomous vehicles, flying cars and AI, to name just a few.
Park also said the EV battery sector could now be more lucrative than EVs themselves, as batteries will be in need whatever companies get the lead in the EV market. Currently, only four percent of new cars produced a year are EVs ― the percentage could rise up to 40 percent in the next few years.
"Sectors that follow global growth trends are less impacted by macro indexes; of course there are lots of macro factors to consider in investment, yet I still think a bottom-up approach still matters," he said.
Mirae Asset Daewoo said the videos sharing the chairman's long-term investment insights were made to provide guidelines for local retail investors, when local and global stock markets are standing at an important watershed moment.