DEEP RESEARCH · BOOK REVIEW/INVESTMENT PHILOSOPHY
The Skill of Life, Zhuangzi: Story Power and Valuation
Notes linking imagination, narrative, and corporate valuation while reading Choi Jin-seok on Zhuangzi
0. Bottom line first
Science and mathematics both begin from hypotheses, so the power of story and imagination is large. Investing is also an act of imagining a company's future story, and I think valuation is shaped by how powerful and visible that story is.
Official fact: The original book link is The Skill of Life, Zhuangzi. The listed author is Choi Jin-seok, the publisher is Wisdom House, and the publication date shown is 2025.03.28.
1. Notes While Reading
Whenever I read books by the philosopher Choi Jin-seok, I find a lot to think about and often agree with him philosophically. That is why I tend to read each new book when it comes out. While reading this one, I wanted to write down the memorable parts one by one.
Interpretation: I have read several of his books for a long time and have always respected him as a philosopher. This memo is less a summary of Zhuangzi itself and more a note on the connection I saw between the power of story and investment judgment.
2. Story Is Stronger Than Logic
Science and mathematics both begin from hypotheses. That is the power of story, or imagination. The old story that a tiger will bite you if you do not sleep was more effective than simply saying “go to sleep quickly.”
Use your words
This is the direct instruction to stop being irritated and speak when angry.
The little dragon
A little dragon that used to puff smoke when upset learns to express hurt feelings in words and reconnects with friends.
Imagination transmitted
This leads to the thought that story is one step above logic, and poetry is one step above story.
3. The Little Dragon Story
Long ago, there was a very small dragon. Whenever something bothered it, smoke came out of its mouth. When others asked, “Why are you like that?” it snapped, “I don't know!” The smoke made its friends uncomfortable, the friends gradually moved away, and the dragon was left alone.
One day, a small voice inside said, “If you tell others that you are upset, you do not have to puff smoke.” From that day on, whenever the dragon felt irritated, it asked, “What am I really angry about?” Then it began to speak carefully: “I don't feel good right now. I was upset because you didn't listen to me.” After that, the smoke decreased and the friends began to gather again.
Interpretation: This is the power of story. Story is stronger than something too logical, and poetry is stronger than story.
4. Future Corporate Stories and Valuation
In a way, my investing also comes from imagining the future story of a company. But I think valuation is determined by how powerful that story is and how visible it is. When investing in a company, I do not focus on PER or PBR. I do, however, refer to cash flow, free cash flow, and margins. I try to estimate how much cash flow this company can generate in five or ten years based on that story.
5. The Scale of Imagination
One reason the West moved ahead of the East earlier can be seen in old myths. Greek and Roman myths are cosmic in scale and even quite outrageous. That imagination is the power to pioneer the future and the source of people's ability to dream.
Readers interested in the earlier book can also refer to the review of Takwolhan Sayu-ui Siseon.
Sources
- Original Naver Blog post: https://m.blog.naver.com/PostView.naver?blogId=star_of_self&logNo=223861905149
- Book link: https://search.shopping.naver.com/book/product/h8CutISMYdPxtHVCIngQPfBfPZEuK%2BUuEpYGi81k8Qw%3D
- Earlier book review: https://blog.naver.com/star_of_self/223715136515