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What the South Korean stock selloff taught me about building a resilient portfolio
By Beansprout  •  August 1, 2026
What the South Korean stock selloff taught me about having a safety buffer, position sizing and using the Four Pots to protect our long-term goals. What happened? Sometime in May this year, someone suggested that I buy a leveraged product linked to a South Korean technology stock. Artificial intelligence (AI) related stocks were performing strongly back then, and the product offered the possibility of earning multiple times the stock’s daily return. However, it did not fit what I was looking for at the time. I had been more focused on income opportunities within my portfolio, and I was not comfortable taking on the additional risks that came with leverage, so I decided not to invest. A few months later, the South Korean stock market fell sharply. In one online trading forum, a South Korean investor reportedly wrote, “Give me my money back.” I can understand why an investor would feel that way....
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By Beansprout
Hi, I’m Gerald! I have been working in investment analysis for more than 12 years. Often, I encounter everyday investors who find it difficult to invest. At Beansprout, we believe that with the right tools and knowledge, everyone can be an investor. Hence, we founded Beansprout to make quality investment insights more accessible. We hope that you can join us on this journey to grow your financial knowledge and confidence as an investor.
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