Beauty of cheap stocks in maturing economy

SBS CNBC

Mr. Ri, Co-CEO of V&S Investment expects a bull market in Koreain mid-to-long term. Equity risk premium of U.S. equity market stands at its 60 year high, implying the market is undervalued. In addition, competitive edge of U.S.manufacturing sector is recovering.

Mr. Ri pointed out that value stocks should outperform growth stocks in Korea as Korean economy entered into ‘maturing’ stage. He views that “value cycle” may be prolonged in the next several years.

Original broadcasting video is available at Original Article [KOR].

http://sbscnbc.sbs.co.kr/read.jsp?pmArticleId=10000557530

Scripts from the video - The secret to outstanding returns

Q: What is the secret of the outstanding return of V&S?

We try to stick to our investment philosophy. Our philosophy is to purchase cheap stocks. We never chase the stocks of which the price is rising. Controlling of emotion is also important.

Q: What is the style of V&S?

Our approach is bottom-up. In each quarter, we screen out discounted companies based on earnings result by using quant model. We start our due diligence on these companies.