The Long Game: Investing in Resilient Founders and Companies Built on Principle

In an era where market volatility and short-termism dominate headlines, the enduring success of companies like Hyundai offers a compelling counter-narrative. Founded by Chung Ju-Yung, a self-made leader who transformed a post-war scrapyard into a global industrial titan, Hyundai's story is not just one of economic growth but of a philosophy rooted in resilience, ethics, and relentless execution. For investors seeking to navigate today's unpredictable markets, the principles that guided Chung Ju-Yung remain as relevant as ever.

The Mental Models of Long-Term Value Creation

1. Long-Term Innovation Over Short-Term Gains
Chung Ju-Yung's vision was never constrained by quarterly earnings. In the 1970s, when most automakers focused on incremental improvements, he invested heavily in hydrogen and electric vehicle (EV) technologies—decades before sustainability became a global priority. This foresight positioned Hyundai as a leader in clean energy, with its Ioniq series now dominating EV markets. For investors, this underscores the importance of identifying companies that prioritize R&D for future markets, not just current trends.

2. Ethical Leadership as a Competitive Edge
Chung rejected hostile takeovers and prioritized long-term reputation over short-term profits. His commitment to fulfilling contracts—even during financial strain—built a culture of trust with stakeholders. Today, this aligns with ESG (Environmental, Social, and Governance) investing. Hyundai's parent company, Hyundai Motor Group, scored 85.4 on MSCI's ESG index in 2024, reflecting its strong governance and sustainability practices. Firms with high ESG ratings often see lower capital costs and higher customer loyalty, making them attractive in risk-averse markets.

3. Resilience Through People-First Culture
Chung's “people-first” approach—profit-sharing, free meals, and open communication—fostered loyalty during crises. During the 2008 financial crisis, while competitors laid off workers, Hyundai's engaged workforce allowed it to weather the storm. For investors, metrics like employee retention rates and engagement scores can signal a company's resilience.

4. Operational Discipline and Speed
Chung's mantra—“Time is the most precious resource”—drove his focus on execution. He pioneered installment contracts to hedge inflation and incentivized workers to take ownership of projects. Modern investors can analyze operational metrics like inventory turnover and days sales outstanding (DSO) to gauge efficiency. Toyota's 14-day DSO in 2024, for instance, highlights its lean execution model.

5. Diversified Innovation as a Buffer
By expanding into shipbuilding, infrastructure, and later EVs and hydrogen tech, Chung created a diversified portfolio that mitigated sector-specific risks. This mirrors the strategies of tech giants like Amazon and Apple. Investors should prioritize companies with multiple revenue streams and a clear innovation roadmap.

The Investment Case for Principle-Driven Companies

In today's volatile markets, where AI-driven algorithms and geopolitical shifts create constant uncertainty, companies built on principles like Hyundai's offer a hedge against chaos. Consider the following:

• Resilience in Downturns: Hyundai's 2008 crisis response contrasts sharply with the collapse of short-term-focused rivals.
• ESG Premiums: High ESG-rated firms like Hyundai often outperform peers in low-growth environments.
• Future-Proofing: Early bets on hydrogen and EVs position Hyundai to capitalize on the $1.2 trillion global EV market by 2030.

Conclusion: The Long Game Wins

Chung Ju-Yung's legacy is a testament to the power of principles over expediency. For investors, the lesson is clear: prioritize companies led by founders who reject short-termism, embrace ethical governance, and build cultures of resilience. In a world where volatility is the norm, the long game—rooted in innovation, ethics, and execution—is the only path to enduring value.

As markets continue to test the mettle of leaders and investors alike, the question is not whether to play the long game, but who will have the patience and vision to see it through.