"Should Have Gotten Out Long Ago? No Way We Can Strike" Retail Investors Who Bought More as Samsung Electronics Heads to 570,000 Won in a 'Pre-Decided Answer' [World of Retail Investors]

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/Photo=Newsis \r\n [Financial News] The open chat room for Samsung Electronics shareholders that office worker Kim Jae-hwan, 39, is part of had been noisy for days.
With the union's general strike set for the 21st, links to related articles and analysis pieces flooded the room, and interpretations varied widely, pushing opinions to opposite extremes.One shareholder shared an article about a Korea Investment & Securities report that set a target price of 570,000 won and said, "This is exactly when we need to stay calm." Another shared KB Securities' view, which set a target price of 450,000 won, saying that much of the uncertainty surrounding the strike and bonus calculations had already been priced in.
"If the bad news is already fully reflected, then this is actually the bottom." he argued.By contrast, another shareholder brought up an AFP article and other foreign reports saying that semiconductors account for 35% of South Korea's exports and that concerns inside the government were growing that a prolonged strike could hurt the country's export-led economy.
As fears of a general strike became reality after the second post-facto mediation talks collapsed and Samsung Electronics' share price fell by nearly 4% intraday, some lamented, "After getting burned like that, I trusted the local market again.
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" Even after a late-night article was posted in the chat room saying that labor and management had reached a tentative wage agreement on the eve of the general strike, reactions remained mixed.
While some people posted a string of celebratory emojis, saying they were glad they had not sold, others cautioned that it was too early to celebrate because uncertainty remained over the union vote.Even with more information, clear analysis is difficult.the trap of selective perception With the largest general strike in Samsung Electronics' history looming, the market has been flooded with information and analysis that could mislead investors.News reports, securities firm research notes, YouTube videos designed to catch the attention of retail investors with titles such as 'The Impact of Samsung Electronics' General Strike,' expert columns, and community posts are all offering a dizzying range of perspectives.The problem is that having more information does not necessarily make investors more rational.Behavioral economics explains this tendency to become even more trapped in one's own bias as information piles up through 'selective perception' and 'motivated reasoning.' The idea is that people selectively accept only the information that fits the conclusions they have already reached or the outcome they want, while intentionally ignoring or distorting evidence that conflicts with their own views.That is why even shareholders holding the same Samsung Electronics stock can react differently depending on their state of mind.Some may focus on KB Securities' analysis that the strike risk has already been priced in and become convinced that "there is nothing left but upside," while others may decide to sell after the union's hardline statement that the management's insincere bargaining stance caused the strike.
The biggest thing to watch out for is the 'pre-decided answer' inside me Individual investors try to make rational decisions by comparing securities firm reports with news coverage.
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In fact, regarding Samsung Electronics, Lee Jae-won, a researcher at Yuanta Securities Korea, took an optimistic view, saying, "If the strike risk does not drag on, Samsung Electronics will see upward revisions to earnings estimates and a market phase that narrows the gap by reversing its relative share-price weakness.
" By contrast, Jin-hyuk Kang, a researcher at Shinhan Securities Co.
, Ltd., said, "Since the union has signaled a hardline struggle, we need to watch whether government mediation succeeds." Lee Kyung-min, a researcher at Daishin Securities, added, "As strike and union-related concerns weigh on share prices, the semiconductor sector is showing a pause for breath." When experts themselves are divided over the same strike, it becomes even harder for individual investors to stay level-headed.In the flood of information, investors must be careful not to become the kind of person who reads only the news they want to see and turns investing into a 'pre-decided answer' mindset .
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bng@fnnews.com Kim Hee-sun Reporter