{"id":40151,"date":"2025-12-18T23:56:00","date_gmt":"2025-12-18T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=40151"},"modified":"2025-12-19T09:31:33","modified_gmt":"2025-12-19T01:31:33","slug":"taiwanese-investor","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/","title":{"rendered":"Investment habits of Taiwanese investors"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Background_of_talking_Taiwanese_investor\" >Background of talking Taiwanese investor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Almost_no_long-term_investing\" >Almost no long-term investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Frogs_in_a_well\" >Frogs in a well<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Narrow_Valuation_Approach\" >Narrow Valuation Approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Preference_for_Financial_Stocks\" >Preference for Financial Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Preferential_Treatment_for_Real_Estate\" >Preferential Treatment for Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Pursuing_Touted_Stocks\" >Pursuing Touted Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Prioritizing_Dividends_Over_Capital_Gains\" >Prioritizing Dividends Over Capital Gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#A_Preference_for_Short-Term_Swing_Trading\" >A Preference for Short-Term Swing Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#A_Blind_Faith_in_Formulas_and_Shortcuts\" >A Blind Faith in Formulas and Shortcuts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Celebrity_Worship\" >Celebrity Worship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Background_of_talking_Taiwanese_investor\"><\/span>Background of talking Taiwanese investor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Recently, due to the publication of my new book, <em>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/08\/26\/investors-beautiful-heaven\/\">Andy Lin&#8217;s third US stock book &#8220;Investors Beautiful Heaven&#8221;, ship worldwide, free shipping to Taiwan<\/a>&#8220;<\/em>, I had to attend media interviews. Over the past three months, during various interviews, the hosts and media staff, besides being curious about how I achieved a 30-year annualized return and why I only invest in US stocks\u2014a major topic of interest\u2014were also the &#8220;investment habits of Taiwanese investors&#8221; that I mentioned in the book.<\/p>\n\n\n\n<p>In my opinion, these &#8220;investment habits of Taiwanese investors&#8221; are actually the reason why most Taiwanese retail investors fail to make significant profits in the stock market. Therefore, I feel it&#8217;s necessary to list some of the &#8220;investment habits of Taiwanese investors&#8221; that I&#8217;ve observed in this article for your reference.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Almost_no_long-term_investing\"><\/span>Almost no long-term investing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is the most fatal flaw; see my other post for a detailed discussion. Please see my deep dive post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/26\/long-term-taiwan-investor\/\">Almost no long-term Taiwan investors<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frogs_in_a_well\"><\/span>Frogs in a well<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Narrow-minded, self-satisfied; always believing Taiwan is the best, intolerant of dissenting opinions. Indifferent to the world outside Taiwan, self-satisfied, short-sighted, and prone to herd mentality.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Narrow_Valuation_Approach\"><\/span>Narrow Valuation Approach<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Using only the price-to-earnings ratio (P\/E ratio) for valuation ignores more important indicators such as revenue, cash flow, return on equity (ROE), and return on invested capital (ROE). Loss-making companies are immediately discarded without further investigation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preference_for_Financial_Stocks\"><\/span>Preference for Financial Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Taiwanese stock investors have a particular fondness for financial stocks. The number of investors holding financial stocks is equivalent to the number of active traders annually: 6 million, accounting for half of all Taiwanese stock accounts\u2014a truly remarkable phenomenon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preferential_Treatment_for_Real_Estate\"><\/span>Preferential Treatment for Real Estate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the US, stocks are the largest component of their assets, accounting for approximately 50%. In contrast, for Taiwanese investors, stocks only account for 20%, with real estate consistently being the largest asset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pursuing_Touted_Stocks\"><\/span>Pursuing Touted Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Wherever I go, almost without exception, everyone asks me for touted stocks, inquiring about stock market trends. To put it bluntly, &#8220;The question determines the questioner&#8217;s level! Which stock to buy is irrelevant; why buy it? The process of forming the investment decision is what matters.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prioritizing_Dividends_Over_Capital_Gains\"><\/span>Prioritizing Dividends Over Capital Gains<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Taiwanese investors prioritize dividends over capital gains. High-dividend stocks are favored, with half of the investors focusing on financial stocks, failing to see the bigger picture. Two pieces of evidence support this:<\/p>\n\n\n\n<p>The number of shareholders in stocks 0056 and 0050 is almost double.<\/p>\n\n\n\n<p>How frantically have Taiwanese investors poured money into high-dividend ETFs in the past few years?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Preference_for_Short-Term_Swing_Trading\"><\/span>A Preference for Short-Term Swing Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Swing trading is the mainstream approach. Retail investors chase insider tips, and influencers instill incorrect investment concepts\u2014leading almost all Taiwanese investors to believe that short-term swing trading is the fundamental principle of stock market investment. Discussions among investors always revolve around: which stock is &#8220;recently&#8221; hot, which company has &#8220;fallen a lot&#8221; or &#8220;surged by a lot&#8221; these past few days.<\/p>\n\n\n\n<p>My book contains complete statistics:<a href=\"https:\/\/finance.ettoday.net\/news\/3026490\" target=\"_blank\" rel=\"noopener\"> In 2024, day trading accounted for a staggering 36% of Taiwan&#8217;s stock market trading volume!<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Blind_Faith_in_Formulas_and_Shortcuts\"><\/span>A Blind Faith in Formulas and Shortcuts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following the crowd, a get-rich-quick mentality, wanting to make money but not wanting to invest time, a blind faith in shortcuts, formulas, and technical analysis, and a penchant for clever tricks. Almost all courses and stock investment books on the market designed for Taiwanese investors tout their unique technical analysis techniques; why? Because demand creates the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Celebrity_Worship\"><\/span>Celebrity Worship<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In Taiwan, the psychological halo effect is almost fully exploited among investors. Any well-known financial scholar, celebrity, professor, athlete, politician, gossip figure, YouTubers, online streamer, or entertainer\u2014anyone who gets media attention\u2014is met with utmost reverence from Taiwanese investors. Their stock market investment pronouncements and methods are almost guaranteed to be widely quoted, forwarded, and reported\u2014regardless of whether these statements are reasonable or truthful. <\/p>\n\n\n\n<p>To Taiwanese investors: use your brain! &#8220;Reputation can be bought with money, but investment performance cannot.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"138\" height=\"90\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2025\/11\/Taiwanese_stock_investors-Custom.jpg\" alt=\"Taiwanese investor\" class=\"wp-image-40154\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/18\/taiwanese-investor\/\">Investment habits of Taiwanese investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/26\/long-term-taiwan-investor\/\">Almost no long-term Taiwan investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/14\/public-reaction-long-term\/\">Public reaction on Almost no long-term Taiwan investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/12\/taiwanese-investors\/\">Taiwan vs US stock market &#8211; For Taiwanese stock investors investing in US stocks<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/05\/5-high-yield-etfs-in-taiwan\/\">5 high-yield ETFs in Taiwan, irreversible trends, and how much do Taiwanese like it?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/19\/failed-taiwan-software-industry-policy\/\" target=\"_blank\" rel=\"noreferrer noopener\">The failed Taiwan software industry policy<\/a>&#8220;<\/li>\n\n\n\n<li> <a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/07\/valuation-method\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Valuation methods significant different between US and Taiwan investors<\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/08\/dividend-rich-industries\/\" target=\"_blank\" rel=\"noreferrer noopener\">Dividend-rich industries and 6 big differences from Taiwan<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/01\/timing-the-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why timing the market or band trading simply not work?<\/a> &#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/21\/why-long-term-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why long-term investment is better?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/17\/possibility-of-long-term\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Possibility of Long-Term Holding<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/14\/stop-worshiping-celebrities\/\">Investors should stop worshiping celebrities<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In my opinion, these &#8220;investment habits of Taiwanese investors&#8221; are actually the reason why most Taiwanese retail investors fail to make significant profits in the stock market. Therefore, I feel it&#8217;s necessary to list some of the &#8220;investment habits of Taiwanese investors&#8221; that I&#8217;ve observed in this article for your reference.<\/p>\n","protected":false},"author":1,"featured_media":40154,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,23],"tags":[],"class_list":["post-40151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-behavior","category-taiwan-stock-market"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=40151"}],"version-history":[{"count":8,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40151\/revisions"}],"predecessor-version":[{"id":40648,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40151\/revisions\/40648"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/40154"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=40151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=40151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=40151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}