´´ Value Investing Japan

Wednesday, March 20, 2019

News on Japan - Week 12, March 2019

This is Peak Japan -- Letter to the Editor by Brad Glosserman (Nikkei Asian Review)

Conservative views stop Tokyo from seizing opportunities to revive economy and Society.

Japan -- The Sun can also Rise  by Jim O' Neill (Nikkei Asian Review)

An aging nation will still have a bright future if it boosts productivity with tech.

Wednesday, October 4, 2017

The "Value Trap" Misconception Trap

"A value trap is a stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher." (Investopedia)

The abovementioned definition of value traps is common, outright wrong and can be extremely costly for a value investor.

A genuine value trap, which is no laughing matter and a nightmare for any deep value investor, is one where a cheaply valued company has some kind of structural issue, cannot make any positive returns on invested capital over prolonged period of time, burns its cash and will eventually fail.

Monday, July 31, 2017

Fukuda Denshi (JP:6960): The Three Bagger Stock That Still Is a Bargain


Fukuda Denshi was first presented on the blog in 2012. Since mentioning the company the stock price has more than trippled.

In this post I will make the case that Fukuda Denshi is a wonderful company that, irrespectively of the significant share price appreciation,  is still a bargain issue.

Friday, July 21, 2017

Value Links of Interest

Learning from Burry's Investment Philosophy by Panda Agriculture& Waterfund

In science, knowledge is cumulative. In finance, however, it is cyclical, with market participants making the same mistakes over and over again. Good ideas, such as value investing, have value in themselves. Not acting upon new ideas however, only overexposes people to perpetuating past mistakes or using inaccurate approaches in an ever-changing world. Being an outsider to finance — as Dr. Burry was — helps people keep an open mind.