Delivering the Truth about U.S. Stock Investment [Vol.51] Distributed on June 20, 2022
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Truths about United States stock investing
［Vol.51］ Delivered on June 20, 2022
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Shigenobu Kawada’s “Media-Driven US Stock Investment Course”
***Table of Contents***
Market recap
This week’s pick articles
Kawada’s stocks of interest
Investment tips
Walk
A quick pause “From the Perspective of FA”
What private investors at the ultra-wealthy level actually practice in “private investment strategies”
Activity information
【How to Read Nikkei to Enrich Your Life】
A project that selects interesting articles from Nikkei Newspaper, which I have been reading for over 40 years since becoming a working adult, and comments on them. It is held every Saturday from 9:00 to 9:45 a.m. in a participation format via Zoom.
Participation is free, so if you are interested, please apply onPeatix.
Below are some of the headlines covered last Saturday.
Online Salon “Dream Realization Asset Formation School”
An online salon where everyone learns and motivates each other to succeed in asset formation. In addition to the much-praised newsletter “Media-Driven US Stock Investment Course,” it offers member seminars that convey content that cannot be fully captured in the newsletter and let you experience the魅力 of US stock investing.
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1. Market recap (June 13 – June 17)
・Dow Jones -4.8%
・S&P 500 -5.8%
・Nasdaq Composite -4.8%
= Quick version =
In the first half of the week, concerns about monetary policy pushed up yields and sent stocks down. After a 0.75% rate hike was announced, there was a brief rebound, but late in the week weak economic data revived recession fears, leading to a further weekly decline.
= A little more detail =
Because consumer prices rose significantly in the prior week, concerns about the pace of rate hikes persisted, and the S&P 500 fell more than 20% from its January record high, entering a bear market.
Ahead of the Federal Reserve’s (FOMC) decision, expectations for further rate hikes accelerated.
A 0.75% rate hike was announced, and further hikes at a similar pace were hinted at; after the Wednesday release, there was a temporary rebound.
However, later reports on retail sales, housing starts, and industrial production disappointed relative to forecasts, widening concerns about the economy entering a recession.
Friday being the option and futures expiry day led to a cautious stance, and after the initial drop, trading remained weak.
S&P 500 five-year chart
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2. This Week’s Pick Articles
A column that selects informative assets-building information from Kawada’s findings, ranks them, and comments from a very personal perspective.
From June, we will also include picking articles and comments from Mr. Nukari Kanzan, who has been introducing books in the Walk corner.
【1】Nikkei NewspaperSemiconductor investment stirs Taiwan nationwide; 20 new plants, 16 trillion yen shock
Expanding geopolitical risks6/8
Over 90% of cutting-edge semiconductors are produced in Taiwan. If 20 new plants all reach mass production, global dependence on Taiwan will rise even further.
Amid increasing unification pressure from China, Taiwan’s diplomacy is now largely reliant on the United States. In this context, the only card with which Taiwan can converse on equal terms with the US is “semiconductors.”
The immediate challenge for Taiwan is not weapons from the US, but self-reliant, state-of-the-art semiconductor factories. A massive investment to survive is quietly and urgently proceeding across Taiwan.
【Kawada’s Comment】
Interpreting semiconductor investment in Taiwan in the light of geopolitical risk is a crucial perspective. Since Russia’s invasion of Ukraine, energy security, food security, and now economic security have gained prominence; but for Taiwan, semiconductors are even more vital—the lifeline of Taiwan.
More than 30 years have passed since the end of the Cold War. Globalization proceeded, and China quickly rose to the international stage. After the end of the Cold War, conflicts based on ethnicity and religion have intensified again, making the world more tangled.
When Japanese people assess international affairs, we tend to think that “democracy and the market economy are best, and every country should be like that,” perhaps due to Western influence, which becomes a standard by which others are judged.
However, looking at world history over decades shows that the world is not moving toward a universal “democracy and market economy.” There should be various forms of governance, and each country has its own system shaped by ethnicity, religion, and historical context. Accepting this helps us understand world affairs more accurately. This applies when analyzing China or Russia as well. Reading media with a flexible, non- doctrinal mindset leads to more accurate judgments. That is how I would like to approach media articles.
【2】Nikkei NewspaperInterview with theologian Tetsuo Yamori on strategies for peace, lessons from history6/11
In a modern world shaken by protracted pandemics and the ravages of war, how does the learned scholar—now elderly—envision things? We visited theologian Tetsuo Yamori (91).
What concerns him now are the outcomes of debates around COVID-19 and war. He recalls ancient migrations: “First the Aryans.” The Aryans, who settled in Central Asia, invaded and conquered present-day India and Iran in ancient times.
“Next came the great migrations of the Germanic and Frankish peoples.” After the era, they moved south from the Nordic regions into various parts of Europe. “During that time, looting and slaughter occurred. The Roman Empire repeated looting and slaughter on an even larger scale. Then came the Crusades. Thus, the Mediterranean civilization formed, followed by the Renaissance, the Reformation, and the Industrial Revolution.”
“During this period, Western European countries looted Africa and traded slaves, and subjugated the Americas. The looting and slaughter in today’s Ukraine have precedents. The pandemics and war in Ukraine are inextricably linked to what humanity has done in the last 2,000–3,000 years.”
Looking back at Japanese history: “Before the Meiji Restoration, under strong Chinese influence for over 1,000 years—a Sino-Japanese alliance. After Meiji, a Japan-Europe alliance. After World War II, the Japan-US alliance. The frontier civilizations on Japan’s archipelago lived within the umbrella of a great civilization, in a dependent relationship, and survived.”
“Japan enjoyed long peace with no major wars for 350 years in the Heian period and 250 years in the Edo period, a historically remarkable peaceful era by world standards. The ‘Non-Violence’ Japanese model is hidden within a thousand-year history. Except for losing WWII, Japan has avoided foreign invasion for a long time.”
Tetsuo Yamori
Religious scholar, critic. Born in 1931 in San Francisco, USA. Former director of the International Research Center for Japanese Studies, now professor emeritus. Works include ‘The History of Love and Lust,’ ‘Reading Shinran,’ ‘Philosophy of “Alone,”’ ‘Thinking intensely, speaking gently,’ and ‘Birth, Life, illness, and death,’ among others.
The Great Migration of the Germanic Peoples and the Huns – World History Map
【Kawada’s Comment】
Yamori is a renowned theologian, and his life story was introduced in Nikkei’s “My History” (March 2018). He interprets the Russia-Ukraine invasion historically and geostrategically. In particular, he notes that Japan, once on the fringe of a great civilization, was “under the protection of a large civilization’s umbrella and lived as a dependent.” He adds, “Except for the defeat in WWII, Japan has long avoided foreign aggression.”
This straightforward and honest interpretation resonates. I like that he describes Japan and its history without arrogance, without flattery—saying that Japan lived “in a dependent relationship, fighting to survive.”
Reading this article, I recalled Yamori’s 2014 book on the bookshelf, “What is Japanese Civilization?” and reopened it. Its preface contains phrases like “clash of civilizations, monotheism and polytheism, separation of church and state versus fusion of church and state, the resurgence of metaphysics,” and other challenging terms.
After the war, did Japanese people deliberately avoid confronting these universal questions that Western intellectuals have tackled head-on? If these debates do not deepen, we cannot understand the causes of geopolitics,民族 and religious conflicts happening in the world today.
When you study, the original text or even translations are often difficult. In such times, books edited by scholars like him can serve as a helpful guide.
【3】Nikkei Newspaper
Is ESG a domain of business?6/15
Three individuals who could be called the contemporary “Geopolitical and Environmental Guardians”: Mark Carney, former Governor of the Bank of England; Larry Fink, CEO of the world’s largest asset manager BlackRock; Jamie Dimon, CEO of JPMorgan Chase.
Their goal is grand: to stop global warming and establish a more just and enlightened form of capitalism.
However, when activities that bring justice into business are called “socially awakened (Woke) capitalism,” accusations of hypocrisy arise, and the three people suddenly become targets of mockery.
The concept of ESG (Environment, Social, Governance) attracted many investors and became a business that could easily earn high fees.
Yet while U.S. tech stocks praised by ESG funds fell sharply, oil-related stocks surged. Fund profits worsened, and investors are now in great confusion.
Nevertheless, many consumers, employees, and investors are drawn to companies that protect the natural environment and social welfare, aiming to build a better future.
Some criticize that it is the government's responsibility to solve societal problems, arguing that billionaires should not wield influence behind the scenes at corporate shareholder meetings to push their political agendas.
Of course saving the Earth is important, but if it is done by a small committee, it smells like elitist overreach.
【Kumakura Comment】
In Japan too there are terms mocking an overly heightened environmental consciousness such as “consciousness-raising type,” but is human emotion universal across nations?
Setting that aside, what is ESG investing? The Ministry of Economy, Trade and Industry (METI) summarizes it as follows.
ESG investing refers to investing that considers not only traditional financial information but also environmental (Environment), social (Social), and governance (Governance) factors. In particular, institutions such as pension funds that operate large assets over the very long term have popularized the concept of assessing corporate management sustainability, with long-term risk management considering issues like climate change and evaluating opportunities for new profits, alongside the UN Sustainable Development Goals (SDGs) as benchmarks.
In Japan, ESG investing has spread after the Government Pension Investment Fund (GPIF) signed onto the United Nations-supported Principles for Responsible Investment (PRI) in 2015, aligning with the broader adoption of ESG perspectives in investing.
(From METI site, under Kumakura’s underline)
PRI began in 2006, so it could be described as one of the century’s major investment themes.
Additionally, regarding concrete ESG investment methods, the Global Sustainable Investment Alliance (GSIA) announced and shared seven core approaches and definitions.
(Source: 2020 Global Sustainable Investment Review)
Investing with environmental consideration, supporting proper corporate conduct, and allowing investors to earn reasonable profits—there is nothing more wonderful. Yet, according to this article, the recent declines have caused substantial investor turmoil.
From this long article, three challenges stand out:
The appropriateness of performance for ESG-themed funds and ETFs
A means to digest global environmental issues in financial markets
The pros and cons of corporate leaders pushing their political agendas to advance their own interests
All are difficult to judge, but if aiming for a better future in the long term, constant monitoring is essential.
Or will natural selection occur through the financial markets?
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3. Kawada’s stocks of interest
This is a corner introducing stocks that Kawada notes as he reviews U.S. stock information, starting with Kawada’s holdings.
This Week’s Stock
Deere & Company [Ticker: DE]
Overview
A world-leading old-established manufacturer founded in 1837, producing large agricultural machinery such as combines and tractors, as well as heavy equipment for construction and forestry. They operate at 100 locations worldwide, mainly in the Americas and Europe, employing more than 75,000 people.
（Figure 1: Deere’s product-by-year sales for 2021）
What makes the company attractive
Deere, a company dating back to the early 19th century, has diversified into construction machinery and other areas. Through improving and technologizing agricultural machinery to raise agricultural productivity, it has increased profitability.
Specifically, besides improvements in the hardware of agricultural machinery, they have focused on software for operating the machines, guidance for efficient agricultural production, interoperability and digitization between different machines, automation, and decision-making within the machinery itself (see Figure 2). The ultimate goal is fully autonomous operation of farming machinery. To realize this, they have pursued strategic acquisitions of AI-related firms.
By raising agricultural productivity through these efforts, they can justify high machinery prices and strengthen profits through value-added businesses such as agricultural consultancy. From ESG perspectives, reduced pesticide use, addressing labor shortages among agricultural workers, and contributing to food production growth make Deere a noteworthy company.
（Figure 2: Deere’s agricultural machinery improvement steps）
Strong performance
These efforts began after Deere adopted a shareholder value-added (SVA) focus in 2001. Agricultural equipment markets are cyclical due to factors like crop prices, but Deere has gradually improved profitability (operating margin) and SVA levels. SVA represents profits that exceed the cost of capital including debt and equity; positive SVA indicates profits above shareholder expectations and a reservoir for shareholder returns.
（Figure 3: Deere’s revenue and operating margin trends）
（Figure 4: SVA and return on assets trends）
Boasting strong performance, Deere has distributed cash to shareholders via higher dividends and share buybacks.
（Figure 5: Deere’s annual dividends）
（Figure 6: Deere’s shareholder returns = more than half of cash flow）
Undervalued?
Deere’s strong 2021 results benefited from higher agricultural commodity prices, and there is also a solid growth in high-value businesses. The market cap expansion of such businesses is expected to continue, lifting Deere’s profit levels.
Despite these earnings strengths and shareholder returns, the forecast price-earnings ratio (PER) is in the mid-teens. This may reflect investor concerns about a pullback after last year’s strong results. Considering market growth and profitability enhancements, the stock appears undervalued.
Risks
A sharp rise in agricultural product prices due to surging production or economic downturns could have a short-term impact on Deere’s stock, but robust cash flows from dividends and buybacks should provide support.
(Sources: company materials; Figures 3 and 4 prepared by ExTrust from company data)
DE basic data (Sources: company data, Yahoo! Finance)
(As of June 17)
Stock price $322.72
Market cap $98.6 billion
Total revenue $45.7 billion
Forecast PER 14.1x
Forecast dividend yield 1.37%
Headquarters: Mulino, Illinois
Listed since: June 1933
Stock chart is five years
Chart provided by TradingView.com
（This corner is intended for general information only and does not solicit the purchase or sale of any securities）
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Stock price drop
The S&P 500 index fell 5.8% for the week, the worst since March 2020, closing at 3674.84. On June 8, over 90% of S&P 500 constituents were down on a given day, and the market has recently declined sharply. Let’s review recent market performance.
From the start of this year, the S&P 500 has fallen 23.4% from its January high. Other large declines have occurred only three times in the last 20 years.
Looking further back, 1987’s Black Monday and the oil shocks of the 1970s.
Sector and style performance are as follows
Growth has sold off more than value. Among sectors, Energy was the only one performing well. Yet even the Energy sector fell sharply last week, leaving little room to escape.
Value stocks vs Growth
Asset class Weekly change
Major indices daily changes
Nasdaq Composite shows high volatility and drawdown. Orange days indicate larger declines; the orange stands out, resembling 2008. If a market bottoming reversal occurs, green days with strong gains will appear. Signs are not yet visible.
S&P 500: share of stocks trading below their pre-COVID highs
Among S&P 500 components, the share of stocks down 20% or more from their highs is above 50%. Yet the index itself sits about 8% higher than its February 2020 COVID crisis level, supported by large-cap names like Apple and Alphabet. Ordinary stocks would have fallen more than the index.
Future concerns
■ Lowering earnings estimates
The immediate concern is corporate earnings. Current analyst expectations are for S&P 500 earnings per share (EPS) to rise about 11% in 2022 to $228, and about 9.6% in 2023 to around $250.
But a rapid, unforeseen earnings shift not seen since 2007 could occur. In the next quarterly results call, the company might discuss more concerns.
■ Decline in price-earnings ratio
If earnings estimates fall, the P/E ratio may face downside pressure. The S&P 500 at 15.4x today may not look as cheap as it seems.
Goldman Sachs notes that if the S&P 500 EPS is $239 and the PER is in the 17x range, the index could reach 4,165. This is a optimistic scenario higher than last Friday’s close by about 13%.
If 2023 EPS is $225 and the PER falls to 14x, the S&P 500 could drop about 14% from Friday’s close to around 3,150.
S&P 500: How to overcome postwar bear markets
So far, we’ve outlined the recent market and concerns ahead. Still, the U.S. stock market is resilient and has overcome many trials. What about actual stock performance?
Post-bear market performance of the S&P 500
The table below shows
① Days to drop 20%
② Days to stop the 20% drop and additional declines
③ Maximum drop in the bear market and days taken
④ Performance in the week, month, 3 months, 6 months, and year after reaching 20% drop
etc.
After a quarterly sharp drop
S&P 500 quarterly performance −15% or more
As of recent, the S&P 500 has fallen over 11% since late May, down 19% for the quarter (Apr–Jun). Looking back, many cases saw strong rebounds afterwards.
Since World War II, a 15%+ drop in a quarterly period has occurred nine times. In the previous eight cases, the next quarter rose on average by 6.22%, and the following two quarters rose on average by 15.15%. In each of the next six months to a year, the S&P 500 rose.
S&P 500: 2-quarter performance down 20% or more
In this case, through the first half of 2022 the S&P 500 had fallen 23%. Historically, when there are two consecutive quarters with a 20%+ drop, the subsequent price recovery is similarly plausible.
Since World War II, when the S&P 500 has fallen 20%+ in two quarters, the next year (or the next four quarters) has risen at least 22%.
Summary
Sharp rate hikes to curb inflation will inevitably restrain economic activity. If earnings forecasts fall and the P/E ratio contracts, these will hit stock prices twice.
Currently investor sentiment is dark. Yet valuations are becoming cheaper than they have in years. The U.S. stock market has overcome such trials many times.
There is no need for pessimism. For those building long-term wealth, this could be an exceptional investment opportunity. However, be prudent and gradual in buying.
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5. A walk corner
◇◇Recently visited shops,movies, museums, books section◇◇
～Kumakura Tsuneki’s installment～
A contribution by Kumakura Tsuneki, a former securities salesman and a voracious reader.
Songlines / Bruce Chatwin
“The North is gold, the South is women, endure Africa, the history of Asia, nothing is Europe, a problem for Oceania.”
This is a somewhat inappropriate modern slogan, but it was a famous phrase shared by young Japanese backpackers traveling the world some time ago.
Among Japanese backpackers—poverty travelers—the allure of Oceania destinations was low.
Short-term trips to big cities like Sydney or Melbourne for their scenery and cuisine were popular due to small time differences, but few ventured to the desolate, Mad Max-like landscapes.
Since the 1994 Japanese translation/presentation of this book (translated by Shinjo Mariko, Melkmaru), and after the Sydney Olympics in 2000 drew attention to Indigenous issues, more travelers started to aim for the region.
On the Indigenous Australians, I had textbook knowledge, but the work of Australian rock band Midnight Oil increased my interest further.
Midnight Oil
An Australian rock band from Sydney. Lead vocalist Peter Garrett served as Australia’s Minister for the Environment, Heritage, and the Arts, and performed a song denouncing discrimination against Indigenous Australians at the Sydney Olympics closing ceremony.
The book’s narrative introduces astonishing Indigenous culture while exploring Chatwin’s wanderlust, encounters with different cultures, and existential questions about life and death within a travelogue.
Charles Bruce Chatwin
May 13, 1940 – January 18, 1989, born in Sheffield, England.
Worked for Sotheby’s, a famous auction house, as an art appraiser.
Later studied archaeology at University of Edinburgh, became a journalist, then pursued writing.
His first work The Patagonia earned the J. H. Fairchild/Hosonden Prize in the UK, the E.M. Forster American Academy Award for Arts and Letters, and was selected as a New York Times Book Review Best Book.
He published five novels before his death in 1989 from AIDS.
(From Wikipedia and Kumakura’s notes)
So what is the essence of that great culture of the Indigenous Australians? It is the "Songlines"—the paths connected by songs.Paths connected by songs are the routes that are sung into memory.
For Indigenous Australians who hold beliefs in nature worship and spirits, every plant, animal, and rock is believed to host a spirit, and sacred sites like Uluru exist among many others.
They express and record landscapes not with writing or maps but through songs that convey the scenery, the movement of spirits, springs, food resources, and shelters across the land.
They move freely across vast lands, obtaining information through exchanged songs with others they meet, without maps.
Chatwin longed for such a life of ultimate freedom—having nothing to own and nothing to cling to—wandering the land in a Zen-like sense of “everything is empty.”
However, the author from the Western world found himself increasingly confounded by the Songlines and, in the end, imagines a destination promised at the end of a wandering life—death.
Right now, at Iwanami Hall, which has been screening world cinema for decades, a documentary about Chatwin is being shown as one of the last programs before closure.
This documentary, made by the German director Werner Herzog (Aguirre, the Wrath of God; Fitzcarraldo; Cobra Verde), marks 30 years after Chatwin’s death, and I watched it; it is a deeply rewarding film.
To read before watching or to watch before reading?
Walking the World: Footsteps of Bruce Chatwin
June 4, 2022 (Sat) to July 29, 2022 (Fri)
【Kumakura Tsuneki】
Joined Daiwa Securities in 1980. Studied MBA at the University of Chicago as a corporate sponsored student. Worked in Singapore and Hong Kong, engaging in Asian business.
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6. A Short Break: “FA Perspective”
A column where Financial Advisor Ryuuji Motohashi answers clients’ questions about asset management.
Hints for escaping the long-acquired “deflation” lull in a column...
Q. I’m troubled by all these price increases lately...
A. In daily life, there is hardly a day without experiencing inflation. Inflation is the daily rise in prices of goods and services we buy—the depreciation of money relative to goods.
Because prices rise, you need more money to buy things, which shows money is losing value against goods.
Inflation strategies are not simple. For example, energy/resource prices are high. Global instability pushes crude oil and energy prices higher. Higher fuel costs raise logistics costs for moving goods. Global food demand is rising, and grain prices like wheat and soy are increasing.
Japan imports many of these, paying most costs in U.S. dollars. Therefore, the recent yen depreciation hits inflation with a double punch.
In Japan, we lack many energy resources. Prices of daily necessities such as cooking oil, flour, and seafood depend on imports. Some readers may worry about monthly electricity and gasoline costs.
Perhaps even tempura udon (oil, udon flour, shrimp, etc.) may no longer be considered Japanese food.
Today, daily life here is closely connected with global markets.
Recognize this reality and not treat inflation as a gambling for quick profit. Instead, build a long-term asset strategy to preserve purchasing power—this is a necessary skill for everyone to acquire.
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Everything around us is rising in price!
According to reports, from January to June 2022, price hikes by 105 major food companies exceeded 10,000 items… In such times, rather than a frugal financial planner, my role as an asset management support for increasing purchasing power is ideal!
Together with Kawada, I will strive to improve everyone’s asset management capabilities.
【Ryuuji Motohashi】
After graduating in 1998, he began his career at Yokohama Bank. He later moved to a private banking role at a foreign financial institution. Soon after, the Lehman Brothers collapse shook the world—he abandoned frontline sales and decided to pursue a career as a financially literate, conventional asset manager. Relying on a few clients, after about 20 years in finance, he started his own independent venture. With zero credits or networks, he thoroughly studied overseas private banking and FA business models, continuously refining to improve client experience.
Now, as an independent financial advisor, he dedicates himself to private financial consulting that values clients’ true preferences, without belonging to any single financial institution.
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7. What the super-rich practice: “Private investment strategies”
Koji Iseki, who specializes in sales support for IFA, shares a simple overview of the investment strategies used by the ultra-wealthy for readers.
Wealthy overseas individuals invest through private banks leveraging. In Japan, this is not widely known, but many elites use this mechanism. Here is one example of that method.
Leveraged investing concepts
When thinking of leveraged investments, many first imagine margin trading and leveraged ETFs. The image might be “high risk” and “scary.”
Indeed, with FX, if the base asset moves by 1, a 3x leverage would move by 3. Short-term aims for big gains leave the possibility of losses beyond the invested principal.
However, the leveraged investing used by the wealthy differs.
With leveraged investing, the principal effectively increases, but risk is reduced. For example, you might take 1 unit of exposure with 3x leverage but target a 0.5 movement; if the trade is profitable, the risk of the trade is halved while gains are amplified (1 -> 1.5).
Thus the wealthy optimize asset utilization. A few concrete examples follow.
Using cash as collateral for leverage (margin trading, FX, etc.)
First, accessible and well-known methods are “margin trading” and “FX.”
Many individual investors also participate. These methods are used often in swing trading to capture small, short-term gains. If done quickly, profits can accumulate on a daily basis.
Because high interest is charged for leverage, long-term trading is not suitable. If you do it, it should be short-term.
Therefore, wealthy individuals rarely engage in such short-term trading. People with time to trade intraday might, but there are few, so this approach may not be ideal for investing.
Stock as collateral for leverage (securities collateral loan)Another method is to borrow funds against financial assets, increasing investment capital via leverage.
Financial assets can be used as collateral. Lower volatility assets have higher collateral ratios; government bonds at around 80%, listed equities at around 60% can be borrowed.
These collaterals are highly recoverable, and with current low borrowing rates, financing is relatively inexpensive. This enables returns on collateral assets to fund leverage, so even if returns per trade aren’t high, overall yield on the invested capital increases.
As noted earlier, this reduces per-trade risk while increasing overall portfolio gains. Owners of listed companies often employ this method.
Using real estate as collateral for leverage (real estate secured loans)
Real estate investors are familiar with this: borrow cash against land or apartments to fund investments.
I know people who borrow against real estate to acquire new properties and continue increasing rental income.
This method is limited to real estate owners, but real estate values tend to be stable, making collateral attractive to banks and enabling greater leverage.
On the downside, liquidity is lower for real estate, so hedging with high-liquidity financial instruments is common. This is another form of effective asset use.
Excessive risk must be avoided
Thus leveraged investing can effectively utilize assets, but the key risk is taking on too much risk. If both collateral and borrowed funds decline in value, losses can be substantial.
Control risk well and pursue leveraged investing prudently. This is essential.
【Ko Ishikawa】
Investing techniques of the ultra-wealthy
President and CEO of Winviser Co., Ltd. He began asset management consulting at SMBC Nikko Securities in Ikebukuro, Fukuoka, and Tokyo, before marketing financial products for the ultra-wealthy.
He later joined an independent financial advisory (IFA) to advise ultra-wealthy on asset management, and established a company that supports IFA businesses in Japan. He currently provides independent financial consulting to individual investors based on his experience.
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8. Upcoming activities
◇ Stock Voice: July 6 (Wed) 11:00–
◇ Nikkei CNBC: June 29 (Wed) phone interview (Mr. Akinobu Miyano)
June 30 (Thu) Mr. Okura's phone interview (Mr. Akinobu Miyano)
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