Value context and insight. lkm@koreatimes.co.kr
INTERVIEW Toss aims to be top guide for retail investors trading US stocks: head researcher
Toss Securities Research Center lead Lee Young-gon / Courtesy of Toss Securities Research Center
By Lee Kyung-min
A record number of Korean retail investors are increasing their holdings in U.S. stocks. Still, it is hard to find high-quality, in-depth market research papers that are easy to understand, especially for those without professional knowledge in finance.
This, according to Toss Securities Research Center lead Lee Young-gon, begs the question, “Why do the average investors have to get buried under mountains of papers full of complex jargon and that are hard to make it through to the end?”
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Stock reports should be easy to read, Lee said in a recent interview with The Korea Times.
“Many existing research reports are quite difficult and unfriendly for many."
The reports seek to provide in-depth insights but tend to be overly complex, making it harder for retail investors to understand.
“We are focused on making our content easier, even for average investors without deep knowledge in finance," he said.
"Our goal is to balance depth with clarity so that our readers can comprehend the material without feeling overwhelmed."
Underpinning the objective is a division of labor between analysts and content managers. Analysts are experts in their field, but simplifying complex topics can be challenging.
That’s where the content managers come in. They make sure the research reports are as reader-friendly as possible. This collaborative approach significantly improves the overall quality of Toss reports, Lee said.
Toss logo / Capture from internet
An analyst's job is not to make precise target price predictions but to help investors understand the market dynamics, he added.
“Having worked in the industry as an analyst myself since the late 1990s, I've seen how many are often expected to predict stock prices or make precise forecasts about market movements,” he said.
“However, I believe the role of analysts is to help investors make informed decisions. The value of an analyst’s work lies in providing insights about a firm’s growth potential, not focusing on short-term price predictions for immediate gains.”
The research center opened last September to provide clear, relevant and useful insights for retail investors.
“We hope this research center becomes a valuable resource for retail investors. We want our research papers to be of significant help, especially when it comes to investing in U.S. stocks," Lee said.
Before the opening, the center engaged with customers by publishing stock-related content on the mobile app. This enabled instant feedback.
Many users commented and shared their thoughts, which broadened the research center employees' understanding of what the readers want and which aspects of their content they found helpful or lacking.
“We were able to incorporate this into where we are and where we want to be to meet the needs of our customers. This level of recognition is what we strive for at Toss Securities Research Center," Lee said.
His ultimate goal is to reach a point where many retail investors say, "I want to invest in U.S. stocks. I must check out the Toss Securities research papers."