[Kwangsoo's Take] Earnings and Stock Price Converge Like a Scale
Lee Kwang-soo likened the relationship between Samsung's earnings and its share price to walking a dog: earnings are the owner, the stock price the dog. In the short run the two can drift apart and pull back together, but ultimately the owner determines direction and the dog follows. On that basis, he argued the stock price must eventually converge with earnings — behaving like a voting machine in the short run, but like a scale in the long run, weighing the company by its actual performance.
He rebutted the argument that Samsung's stock should be marked down because second-half profit growth will slow, comparing it to telling a child who scored 100 on a test that next time they must score 120. Investing, he said, is about pursuing truth, not merely facts — and repeatedly posting around 100 trillion won in quarterly operating profit is already an outstanding score in its own right.
He also pushed back on the claim that the earnings were 'already priced in,' noting that at the start of the year nobody had predicted Samsung would post roughly 90 trillion won in Q2 operating profit — making such claims hindsight bias. While acknowledging that single-stock leveraged products can distort short-term supply and demand, he argued that over the long run the scale doesn't lie, and Korean chipmakers deserve a longer time horizon from investors.