Everyone dreams of hitting the jackpot, but such opportunities do not come to all. In the stock market, when one side wins big, the other often faces losses. A scenario where everyone profits does not exist anywhere in the world.
Yet, retail investors continue to chase after big gains. Warren Buffett's advice, "Be fearful when others are greedy, and greedy when others are fearful," often falls on deaf ears. As a result, retail investors tend to buy during market dips and realize profits when indices rise, leading to a trend of short-term trading.
Is there a guide for retail investors standing at the crossroads of success and failure? Following the investment strategies of seasoned investors is one of the best approaches. The Aju Economic Daily commissioned Mirae Asset Securities to analyze the top 1% and bottom 1% of investor returns for June. Where do you stand on this spectrum?
Top Picks of Successful Investors Include SK Hynix and Padu
Mirae Asset Securities analyzed the investment preferences of individual clients with net assets exceeding 1 million won. The choices of the top 1% and bottom 1% of investors were starkly different. The top 1% focused on leading stocks in the AI semiconductor sector, such as SK Hynix and Samsung Electronics. In contrast, the bottom 1% favored traditional large-cap stocks like LG Electronics and SK Telecom, which are more defensive in nature.
SK Hynix topped the list of the top 10 picks among the top 1% investors. Following it were Padu, Samsung Electronics, Hive, and Samsung SDI in the second to fifth positions. The sixth to tenth spots included EcoPro, BH, APRO, EcoPro BM, and Korea Electric Power Corporation.
The portfolios of these top 1% investors can be summarized by a "leading stock following" strategy. There was a concentrated buying interest in semiconductor equipment and secondary battery stocks, benefiting directly from the expansion of AI investments. Semiconductor-related stocks such as SK Hynix, Samsung Electronics, Padu, and BH dominated the rankings, while EcoPro, EcoPro BM, and Samsung SDI represented the secondary battery sector. A significant focus on growth industries was a common trait among high-return investors.
Notably, not all of the top picks among the top 1% saw their stock prices rise. During June, aside from SK Hynix (up 13.59%) and Samsung Electronics (up 5.36%), eight of the top 10 stocks recorded negative returns. EcoPro BM (-34.33%), BH (-30.67%), Samsung SDI (-29.22%), EcoPro (-23.31%), Padu (-21.94%), and Hive (-12.68%) experienced significant declines. APRO also saw a slight drop of -2.53%. This suggests that high-return investors did not merely buy rising stocks but actively traded and swapped stocks centered around market leaders to achieve high performance.
Bottom Performers Favor LG Electronics and SK Telecom
The bottom 1% of investors had different stock selections. The top pick among these investors was LG Electronics, followed by LG Innotek, SK Telecom, LG CNS, and Jeju Semiconductor in the second to fifth positions. Wonik IPS, LS ELECTRIC, SK Square, Hanmi Semiconductor, and Peace Peace Studio occupied the sixth to tenth spots.In the bottom tier, there was a higher proportion of defensive stocks, including LG affiliates and telecommunications. However, semiconductor stocks like Jeju Semiconductor, Wonik IPS, and Hanmi Semiconductor were also included, indicating that the timing of stock selection and purchases significantly affected returns.
Notably, the top picks included Peace Peace Studio, a fashion and lifestyle company that symbolizes the struggles of public offering investments. Peace Peace Studio went public on May 8 but saw its stock price drop approximately 36% on its first day compared to the offering price of 21,500 won, closing at 5,330 won on July 1, a 75.2% decline from the offering price.
Most of the stocks among the bottom 1% investors also recorded negative returns. LG Innotek (-32.72%) had the largest drop, followed by LG CNS (-30.76%), LG Electronics (-30.72%), SK Telecom (-12.13%), and Hanmi Semiconductor (-9.04%). LS ELECTRIC saw a slight decline of -1.45%. However, material, parts, and equipment companies like Wonik IPS (27.12%) and LG Innotek (10.30%) ended positively.
Top International Stock Pick is SpaceX
In international stock investments, the strategies of high-return and low-return investors were also distinctly different. The top pick for the top 1% of investors was the prominent SpaceX. The stock price of SpaceX has fluctuated significantly since its listing, exceeding the offering price of $135 and reaching over $200, but as of July 1, it was trading around $130, close to its offering price.Aside from SpaceX, the investment strategy of high-return international investors leaned towards "leverage betting." The second to fifth positions included Roundhill T-REX DRAM Daily 2x ETF, GraniteShares Intel 2x ETF, Strategy, and Defiance IonQ 2x ETF. The sixth to tenth spots also featured leveraged products like TRADR ASTS Daily 2x ETF and ProShares UltraPro QQQ.
Conversely, the top pick among the bottom 1% investors was Micron Technology. Following it were SpaceX, Broadcom, T-REX MSTR Daily 2x ETF, and T-REX RDW Daily 2x ETF in the second to fifth positions. The sixth to tenth spots included GraniteShares Marvel 2x ETF, Roundhill T-REX DRAM Daily 2x ETF, and Leveraged Shares SpaceX 2x ETF.
A representative from Mirae Asset Securities stated, "While both the top 1% and bottom 1% investors held some of the same stocks, including SpaceX, their returns were markedly different. Ultimately, the timing of buying and selling created this disparity. It is clear that those who actively engaged in the booming AI semiconductor sector achieved better returns."
* This article has been translated by AI.
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