Buy Stocks Instead of Coffee: How the Wealthy Invest During Market Volatility

John Lee, a prominent South Korean financial expert and CEO, has characterized the reliance on bank deposits as one of the most hazardous approaches to personal financial management. Lee argues that while deposits are traditionally viewed as safe, they often fail to protect the real value of capital against inflation, thereby hindering long-term wealth accumulation.

In a detailed discussion regarding wealth building during periods of market volatility, Lee advocated for a fundamental shift in how individuals perceive small daily expenditures and their relationship with equity markets. He suggested that redirecting modest sums—specifically citing the cost of daily coffee—into the purchase of stocks can lead to significant financial independence over time due to the power of compounding.

The Perceived Risk of Bank Deposits

Lee’s thesis centers on the distinction between nominal safety and real economic value. He posits that bank deposits are the most dangerous financial technology because the interest rates provided by banking institutions frequently lag behind the rate of inflation. This gap results in a decline in the actual purchasing power of the saved money, meaning that while the numerical balance in an account remains stable or grows slightly, the amount of goods and services that money can buy decreases.

To counter this, Lee promotes the ownership of productive assets. He maintains that investing in companies allows individuals to share in the growth and profits of the economy, which typically provides a more effective hedge against inflation than the fixed interest rates of a savings account.

Small-Sum Investment Strategy

A central pillar of Lee’s philosophy is the elimination of unnecessary consumption in favor of consistent, small-scale investing. He encourages individuals to analyze their daily spending habits to identify funds that can be repurposed for asset acquisition.

“If you have money to drink coffee, buy stocks with that money.”

John Lee, CEO

This approach is designed to lower the psychological barrier to entry for retail investors. By framing stock investment as a replacement for a daily habit rather than a high-risk gamble requiring a large capital outlay, Lee aims to encourage a culture of long-term saving and ownership among the general public.

Managing Market Volatility

Addressing the tendency of retail investors to panic during market downturns, Lee explains that the wealthy maintain a different psychological framework when faced with price fluctuations. Rather than focusing on the short-term explosion or collapse of stock prices, successful investors focus on the underlying value of the businesses they own.

Lee suggests that market volatility should not be viewed as a signal to exit the market, but rather as a natural characteristic of equity investing. He argues that those who attempt to time the market—buying only at the bottom and selling at the peak—often miss out on the primary gains associated with long-term holding.

His strategy emphasizes the following principles for navigating volatile markets:

• Prioritizing the ownership of companies over the speculation of price movements.
• Maintaining a long-term time horizon to smooth out short-term losses.
• Consistent accumulation of shares regardless of immediate market sentiment.

Professional Context

John Lee has established himself as a leading voice in South Korea’s retail investment movement, previously serving in leadership roles at Meritz Asset Management and later founding Merit Partners. His public advocacy focuses on shifting the South Korean public’s preference from real estate and bank deposits toward a more diversified portfolio of global equities.

By challenging the cultural reliance on the perceived security of bank deposits, Lee continues to promote a model of financial literacy that emphasizes equity ownership as the primary vehicle for achieving financial freedom.