April 09, 2021 12:11
Some 3.1 million stock investors in Korea have put all their eggs in one basket by investing in a single company, the Korea Securities Depository said Thursday.
Analysis of shareholdings in 2,352 listed companies showed that 33.8 percent of investors own shares in only one company, whereas experts urge investors to diversify their holdings.
Another 1.53 million investors or 16.7 percent own shares in just two companies and one million or 10.9 percent in three.
Most or 87 percent invest in fewer than 10 companies. But a savvy 14,091 investors own stocks in more than 100 companies, which would make even hedge-fund managers jealous, and 104 in more than 1,000 companies.
"An investor with billions of won at their disposal could invest in more than 100 companies, but retail investors will find it hard to manage scores of different stocks," an industry insider said.
But owning shares in a single company need not be a risky, high-yield investment. One retiree owns stocks in his old company where he was employed for 30 years. "I know the company's history very well and I can also see where it's headed, so I don't get nervous over short-term stock price fluctuations," he said.
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