Kiwis on Wall St: Eunsung An

Name: Eunsung An

Location: Auckland

Investment style: Long-term investor

Why did you start investing, and why the US market?

I became really interested in the AI industry. The US market is home to many of the world’s leading AI companies, so I decided to start investing there based on this interest.

What were your first investments?

When I first started trading stocks, I invested in New Zealand companies like Spark and The Warehouse. Eventually, I turned my attention to the US market because I felt the NZX was relatively small and offered fewer opportunities for the returns I was looking for.

Where does Wall St fit into your overall investing picture?

My KiwiSaver is also invested in US stocks, so my allocation to the US market is effectively 100%. That’s because I believe there are greater opportunities for returns in the US than in the New Zealand market.

Describe your investing style

My investment style leans towards long-term investing. I believe that if I find a good company, I should have enough confidence in it to invest and feel comfortable enough to ‘go to sleep’ and wake up 10 years later.

What research do you do before buying a stock?

I look at quarterly earnings, charts, global affairs, oil prices and interest rates. I try to buy when I believe a stock is priced low relative to the market, primarily using the Fear Index and stochastics as references.

What US stocks are currently on your watchlist?

I’m keeping a close eye on the AI, semiconductor and aerospace sectors. I believe we’re entering a new era of technological development, following on from the industrial age, and these sectors will play an important role in shaping it.

What surprised you most when you first started investing on Wall St compared to NZ?

One of my main investment criteria is a company’s strategic direction. I look at how valuable and essential the products it produces today — and plans to create in the future — could be to the world.

I haven’t found the same level of technological opportunity among New Zealand companies, which is why I currently don’t invest in them. What surprised me most about investing in US stocks was the technological capability of the companies and the scale of investment from American investors.

How much do you think about the NZD/USD exchange rate when investing in the US – if at all?

Exchange rates do have an impact. If the exchange rate is unfavourable, it can make me more reluctant to invest at that time.

How did you react when you saw one of your investments go down?

I investigate why the stock price has fallen. If there are no issues with the company’s fundamentals, I don’t worry too much – although it certainly doesn’t feel good! If I have spare capital, I may instead view it as a good opportunity to invest further.

What advice would you give your younger self before making your first trade?

I would tell myself to research the fundamentals of any company I’m considering investing in and to only invest money I can afford to set aside.

Finally, what’s it like being a Kiwi investing in Wall St?

New Zealand is an island nation with a lot of stability and peace. Without investing, I might not have had the same reason to take such an interest in what’s happening elsewhere in the world. I’m glad investing in stocks has encouraged me to pay more attention to global trends, and I hope to see more New Zealand companies emerge that present great investment opportunities in the future.

Quick fire: tell us…

1. One US stock you’d happily hold for 10 years? Tesla ($TSLA)
2. A company you’d love to own a tiny piece of, listed or not? SpaceX ($SPCX)
3. Investing on Wall St in three words? Future. Opportunity. Fun.

Important: The personal views in this article do not reflect the views of Stake and do not constitute financial advice. As always please do your own research before investing on Stake. Past performance is not a reliable indicator of future performance.