Lending Money versus Investing Money Lessons to Learn from a Market Downturn (1 of 7)

Lesson from a Korean Flour Company

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A couple of years ago I got this investment guide on Korean stocks. I began looking through it. It felt like 1974 all over again. Look here at this company...Dae Han, I don't know how you pronounce it, it's a flour company. It earned 12,879 won previously. It currently had a book value of 200,000 won and was earning 18,000 won. It had traded as high as 43,000 and as low as 35,000 won. At the time, the current price was 40,000 or 2 times earnings. In 4 hours I had found 20 companies like this. The point is nobody is going to tell you about these companies. There are no broker reports on Dae Han Flour Company. When you invest like this, you will make money. Sure 1 or 2 companies may turn out to be poor choices, but the others will more than make up for any losses. Not all of them will be good, but some will and those will make you rich. And this didn't happen in 1932, this was in 2004! These opportunities will be there in the next 30 years. You'll have streaks where you'll find some bad companies and a few times where you'll make money with everything that you do.