Veteran Investor Du Jinlong Makes His First ETF Purchase

Highlights

Veteran Taiwanese investor Du Jinlong, known for focusing on individual companies, says he began buying during a market decline and recently made his first ETF purchase. He described reducing his stock exposure from 95% in mid-July to 60% as the market approached 50,000 points, then raising it to 65% as the index tested 46,000 points. His interest is in actively managed, AI-focused ETFs that seek companies with strong earnings prospects rather than simply tracking the largest firms by market value. The approach aims to balance exposure to high-growth shares with the diversification of a fund. Du also outlined his market outlook and named upcoming political events as potential sources of volatility.

Sentiment Analysis

• The article’s tone is cautiously optimistic. Du Jinlong describes buying in stages after a steep market decline and says he sees signs of a short-term floor near the 46,000-point seasonal line. His reported portfolio exposure rose to 65%, suggesting renewed confidence, but not an all-in stance.


• Much of the optimism centers on actively managed AI-themed ETFs and companies with strong anticipated earnings growth. The article presents these funds as a way to access expensive shares while spreading single-stock risk. These are attributed views, not assurances of future returns.


• Risk remains a significant part of the narrative. The market has experienced a sharp drop, foreign investors reportedly sold heavily, and currency weakness and political events could affect prices. The article therefore mixes a positive outlook with caution about volatility and the need for independent investment decisions.

Article Text

Du Jinlong is presented as a veteran Taiwanese market participant with more than 30 years of experience and a reputation for technical analysis and company research. His familiar investment style has focused on individual stocks, including large companies such as Taiwan Semiconductor Manufacturing Company, MediaTek, and Unimicron. The article says he has seldom used passive ETFs as a place to invest capital. Against that background, his account of buying an ETF during a market downturn marks a notable change in his usual approach.

In an interview on the YouAnalysis program “What Investors Want to Know,” Du said he had begun buying gradually as prices fell and had recently purchased an ETF, despite usually buying few such funds. The article describes a steep market retreat after Taiwan’s weighted index had approached 50,000 points. It says the index fell 3,800 points and moved below its seasonal line at 46,000 points. These details frame Du’s purchase as a response to a volatile market rather than a departure from his broader focus on company fundamentals.

Du said he had reduced his equity allocation from 95% when buying near a low in mid-July to 60% as prices rose. When the index later returned to the 46,000-point area, he judged that a short-term market bottom might be forming and began adding exposure in stages. The article reports that his allocation subsequently increased to 65%. Alongside adding to positions in Taiwan Semiconductor Manufacturing Company and MediaTek, he said he purchased an actively managed, thematic ETF for the first time.

The article attributes Du’s interest to a fund-selection approach he describes as “AI 3.0” and “adding muscle while reducing fat.” Unlike a conventional market-cap-weighted fund that follows the largest companies, this approach seeks to reduce exposure to large firms whose earnings growth may be weak or stagnant, while adding businesses with stronger expected profits. In the metaphor, those less productive holdings are “fat,” while companies with robust growth prospects are “muscle.” The article identifies future earnings growth over the next 3 years as a consideration and cites high-priced shares such as Wistron NeWeb and BizLink as examples of companies Du regards as strong businesses.

Du’s comments also address the difficulty individual investors may face when considering expensive shares. He recalled buying BizLink (2059-TW) and being teased by his wife for buying a single costly lot. The article notes that one lot of a high-priced stock can require a substantial investment, and that even institutional investors may be cautious about committing large sums to one company. While such stocks can have strong earnings potential, their prices can fluctuate sharply. The piece refers to declines of 30% in examples including Largan Precision, Taiwan Union Technology, and Wistron NeWeb, illustrating the psychological and financial strain that concentrated positions can create.

In the article’s account, an ETF can make a basket of expensive AI-related companies accessible at a lower entry cost. It gives 10 yuan or 15 yuan as examples of small amounts that could provide exposure to a group of companies, rather than a single share purchase or a concentrated bet. The stated rationale is diversification: investors may gain exposure to businesses associated with chips and servers without bearing the full risk of one company’s decline. The article characterizes these funds as combining defensive breadth with growth potential, but it does not establish that they will outperform or avoid losses.

Du’s market view also considers foreign selling, currency movements, and domestic institutional buying. The article says foreign investors withdrew 2 trillion yuan and that the New Taiwan dollar fell below 32 yuan. It further reports that the eight major government-owned financial institutions bought shares for 9–10 consecutive days while the index tested 46,000 points. Du interpreted these developments as possible signs that selling pressure had reached a short-term limit, though such signals do not guarantee a lasting market recovery.

Two political dates feature in Du’s outlook: the U.S. midterm elections on November 3 and Taiwan’s six-municipality elections on November 28. He suggested that uncertainty might ease after both events and that the market could then begin pricing the following year. The article cites a historical average of 1,500 to 1,800 points or more for a year-end positioning rally from December through Lunar New Year and Lantern Festival. Du’s stated targets are 53,000 points for a market swing and 80,000 points over the longer term. These figures are his projections and historical references as reported in the article, not guaranteed outcomes or independent forecasts.

The overall strategy described is a combination of individual stocks and ETF exposure: add gradually to established companies during declines, while using a diversified, actively managed fund to access high-priced growth companies. The article closes with a disclaimer that its material reflects interview comments and is for reference only. It says investors should make their own judgments, assess risk carefully, and accept responsibility for investment decisions.

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