This blog post explains the limitations of short-termism and the importance of a long-term perspective using relatable real-world examples.

Why Choose Long-Termism?

At one time, ‘short-termism’ seemed appealing to many. Its defining characteristics are speed and efficiency. The core strategy is to react swiftly when an opportunity arises and deliver results quickly.
Short-termism always focuses on ‘opportunity’. We see people around us who immediately jump on the bandwagon when a trend emerges. When Bitcoin becomes popular, they rush to buy; when P2P financial products gain attention, they flock to them; when the real estate market heats up, they dive right in. It’s as if they’re addicted to the word ‘opportunity’.
That said, we cannot simply declare short-termism wrong. The same applies to long-termism. Neither can be judged inherently right or wrong. However, from a fundamental perspective, short-termism tends to overlook crucial processes.
Short-termists skip the entire process of ‘plowing the land, sowing seeds, applying fertilizer, watering, and tending with care,’ expecting only a bountiful harvest. In other words, those chasing short-term profits tend to fixate solely on results without understanding the process.
They wish to make money, become smart, and get rich overnight. Of course, there are cases where someone achieves significant short-term gains due to specific timing or luck. Statistically, however, most short-termists fail. Only a very small minority succeed with extremely low probability, yet these cases are packaged as ‘success myths’ to lure people in.

Why Choose Long-Termism?

So, if short-termism can also generate profits, why insist on long-termism? To answer this, let’s first introduce three ways to make money.

1. Gambling: This method relies purely on luck, without any analysis or thought. Following someone else’s advice blindly falls into this category.
2. Speculation: Betting on specific events or variables based on a certain level of information and analysis. For example, speculating whether a company’s financial report will exceed expectations and attempting short-term trading.
3. Investment: Focusing on the compounding effect with a long-term perspective. Capital is invested based on a company’s overall stability and sustainable growth potential. This approach expects a structure where value naturally increases over time.

From this perspective, investment involves studying a company’s ‘overall situation,’ speculation analyzes ‘events,’ and gambling involves no research whatsoever.
The core of the investment approach advocated by long-termism is ‘value.’ Conversely, in short-term speculation, ‘price’ is paramount. This does not imply that short-term trading is inherently wrong. In fact, speculation demands a significantly higher level of skill than investment.
The factors determining price are truly diverse. Changes in the global economic environment, market sentiment, volatility in corporate performance, unexpected external events—countless variables cause ‘price’ to fluctuate wildly. That’s why the simple strategy of ‘buying low and selling high’ is actually extremely difficult.
But long-term investing is different. If a company’s intrinsic value is solid, even if the external environment temporarily shifts, it will ultimately recover based on its fundamental worth. It’s a structure that allows you to expect stable returns over time.

Real-Life Example: College vs. Immediate Employment

To make this concept easier to understand, let’s look at a realistic example from everyday life.
A student graduating from high school faces an important crossroads.

1. Should they enter the workforce immediately to earn money?
2. Should they go to college and continue their studies?

Choosing immediate employment means starting work in delivery services or construction sites, earning around 2 million won monthly. On the other hand, attending college means no income for four years, while monthly expenses like tuition, dorm fees, and living costs amount to roughly 2 million won. The first monthly salary after graduation is also generally less than 2 million won.
Looking at it this way, entering society as a high school graduate seems much more economically advantageous in the short term. Recently, there have even been reports of people with master’s degrees working as delivery riders.
Yet, most still choose to go to college. Why? The reason is simple. The broader range of choices and possibilities that lie ahead are more important than immediate income. College graduates have a greater likelihood of enjoying more opportunities and higher income levels as time passes. In contrast, delivery work income struggles to rise beyond a certain level and is not physically sustainable long-term. There are also many constraints in terms of social perception and career scalability. In other words, most people choose based on future value rather than immediate earnings. This decision is a prime example of practicing long-termism.

Time reveals the truth

Now, let’s revisit the choices of gambling, speculation, and investment. Some people do make large sums through gambling. Significant profits from speculation also occur frequently. The problem is distinguishing whether those gains stem from skill or luck. Similarly, even if someone rides a temporary trend to substantial profits, only time will tell if that strategy is sustainable.
In 2020, following the COVID-19 pandemic, stock markets worldwide experienced a significant bull run. Profits flowed from nearly every investment, drawing many into the stock market, and indeed, many achieved substantial gains. Within this atmosphere, many overestimated their own abilities; some even quit their day jobs and invested the bulk of their assets in stocks. However, just one month after the 2021 Lunar New Year holiday, the situation changed dramatically. Stocks that had been rising collapsed, with tech stocks in particular plummeting by half.
This incident starkly reveals the illusion of short-termism. Only with the passage of time can one truly distinguish genuine skill from mere luck. The saying ‘time heals all wounds’ is not merely a comforting expression. A few ‘success stories’ appearing within a short timeframe are insufficient for making sound judgments. With too few samples, statistics become distorted, potentially leading to wrong choices. Ultimately, long-termism is a strategy to make ‘time’ work in your favor. It’s a way to tip the odds in your direction and the most rational choice for finding certainty in an uncertain world.

In Conclusion: Why Long-Termism?

We make countless choices throughout life. Most of these decisions are for the ‘future’ rather than the ‘present’. Only those who look ahead, prepare, and wait—rather than being swayed by immediate gains or fleeting opportunities—can ultimately go further.
Long-termism isn’t just an investment philosophy. It’s wisdom applicable to relationships, careers, health, and every aspect of life. And that wisdom deepens and solidifies over time. Whatever you choose now, time will eventually provide the answer. May that answer be certainty, not regret.