´´ Value Investing Japan

Monday, April 1, 2019

J- Vid of Interest

Wednesday, March 27, 2019

Performance Update

Performance of the stocks mentioned on the blog as a long position of mine has been updated.

To be found here: Performance

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.