Okay, here’s a breakdown of the text, translated and summarized, along with the core argument:
Overall Argument:
The text argues that viewing stock investment as gambling is a misunderstanding. While it can be treated like gambling, true stock investment - investing in companies with a long-term perspective – is a legitimate path to wealth building. The author uses the example of the National Pension Service (NPS) in Korea to illustrate this point. If stock investment were truly akin to gambling, the NPS (which invests citizens’ money in stocks) would be engaging in reckless and damaging behavior. The author highlights the NPS’s 15% return in 2024 as evidence of the potential for positive returns.
Detailed Breakdown & Translation:
Paragraph 1: “It’s easier to buy stocks and do it like gambling. Though, rather than selling stocks, stocks, more precisely, to companies, if they invest, the stock market is a place to build wealth, not a shortcut to ruin.”
Translation: The author acknowledges the ease with which people can treat stock trading as a fast-money game (gambling). However, they emphasize that investing in the underlying companies (the stocks represent ownership in those companies) is a diffrent approach, one that can lead to wealth creation.
Paragraph 2: “you will be holding a national pension that you don’t like. The National Pension Service is investing in stocks and bonds to make money from the people. If stock investments are losing and close to gambling, the National Pension Service is gambling with the money of the people, and is doing a very unusual work of pushing the country into bankruptcy beyond defeat.”
Translation: Everyone participates in the national pension system, even if they don’t like it. The NPS invests this money in stocks and bonds. The author poses a rhetorical question: if stock investing were truly gambling, the NPS would be recklessly gambling with citizens’ funds, potentially leading to national financial ruin.
Paragraph 3: ”If you think of a 50% chance of getting up and falling like a young child, and if you do stocks like gambling, the expression ”stock is a shortcut to ruin” is a correct expression.”
Translation: If you approach stocks with a short-term, speculative mindset – trying to predict random price fluctuations like a coin flip – then the negative view of stocks as a path to financial ruin is justified.
Paragraph 4: “However, the National Pension Service’s 2024 return was 15%. When you listen to the number of 15%, you may think it’s a small number, a small profit, but it’s a huge return considering that the bank’s deposit rate is 2%-3% in T-3%.”
Translation: The NPS achieved a 15% return in 2024. While this might not seem huge to some, it’s a very significant return when compared to the low interest rates offered by bank deposits (2-3% before taxes).
Paragraph 5: “Our country’s pension is not the only one using stock investment. the United States also has a system called 401(k). This invests retirement funds in stocks…”
Translation: This paragraph begins to broaden the argument, pointing out that other countries (like the US with its 401(k) plans) also utilize stock investment for retirement funds.
Key Takeaways:
Investment vs.Speculation: The author distinguishes between investing (long-term, based on company fundamentals) and speculation/gambling (short-term, based on price movements).
NPS as an Example: The National Pension Service is used as a powerful example to demonstrate that stock investment, when done responsibly, can be a viable and profitable strategy.
Returns Matter: The 15% return of the NPS is presented as concrete evidence of the potential benefits of stock investment.
Global Practice: The mention of the US 401(k) suggests that stock investment for retirement is a common and accepted practice worldwide.
In essence,the author is advocating for a more informed and nuanced understanding of the stock market,moving away from the perception of it as simply a gambling den.
