DEEP RESEARCH · Asset allocation and long-term investing
Mirae Asset Vice Chairman Huh Sun-ho’s 2025 New Year Investment Letter
An investment memo on great companies, the social role of pensions, and 2025 asset allocation
0. Bottom line first
I always pay close attention to this investment letter. He feels almost like Korea’s Howard Marks. The letters are consistently objective, global, future-oriented, and balanced in terms of risk.
This letter began with the question, “Why do some companies remain great while others collapse?” The core message is about companies that stay faithful to the basics while responding actively to change, and about the investment principles needed to select such companies for the long term.
1. Overview of the 2025 investment environment
Official fact: According to the original summary, 2025 was described as the “year of the blue snake,” a period of new possibilities and renewed takeoff.
- Successful companies must stay faithful to the basics.
- At the same time, the letter emphasizes the importance of responding actively to change.
- It says only companies that respond intensely to customer needs, intuitively grasp trends, and innovate can remain sustainable.
Interpretation: I read this as a message that investors should look beyond simply choosing attractive industries and focus on companies that keep renewing their competitiveness by reading customers and markets amid change.
2. Corporate social responsibility and the role of pensions
The letter emphasizes that companies should go beyond profit generation and contribute to creating social value and development. In Korea, which has entered a super-aged society, the pension business plays a central role, and raising pension returns is important.
Official fact: The original summary states that even a 1% increase in pension returns can have a large economic and social impact.
Interpretation: Asset-management performance is not just about a financial company’s earnings; it is also linked to stability of life in an aging society. In this respect, pension-management capability is where social responsibility and investment performance meet.
3. Investment principles
Companies with an edge
Invest in companies with competitive advantages in market position, business structure, governance, and related areas.
Capacity to innovate
Look for companies with the ability to keep innovating without being shaken by short-term volatility.
Risk and return
Invest while checking risk factors as well as potential returns.
4. 2025 market outlook
- Continued U.S.-led bull market: Trump policies and a market-friendly environment were presented as key drivers.
- AI innovation and growth: the strengthening market dominance of AI-related companies was highlighted.
- Inflation and rates: the possibility of high interest rates remaining in place was noted.
- Diversification across Asia: opportunities in Korea, China, and India were emphasized.
Interpretation: This is not a purely optimistic outlook. It recognizes U.S. and AI strength while also weighing rates, inflation, and regional diversification.
5. Asset allocation for unexpected events
- It is important to secure safe assets such as bonds and liquid assets.
- Diversification into neglected markets such as China can also be considered.
- Gold investment can be considered as a hedge against geopolitical risk and interest-rate risk.
- Periodic portfolio adjustment and customized asset allocation are needed.
6. Conclusion
Mirae Asset’s message can be summarized as pursuing sustainability with clients by keeping principles grounded in the basics while responding flexibly. The letter also contains a commitment to increase social value and remain a trusted partner.
I always read the investment letters with appreciation. I support the work.