Delivering the Truth about U.S. Stock Investment [Vol.52] Distributed on June 27, 2022
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The Truth About US Stock Investment
［Vol.52］ Released June 27, 2022
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Kawada Shigenobu’s "Stock Lecture in the Media
＊＊＊＊Table of contents＊＊＊＊
Market recap
This week's pick-up articles
Kawada's notable stocks
Investment tips
Walk/Outing
What is the “Private Investment Strategy” practiced by ultra-wealthy people?
Activities information
【How to Read Nikkei to Enrich Your Life】
A project that picks up and comments on articles I have been reading for over 40 years as a working adult in the Nikkei. It is held every Saturday from 9:00 to 9:45 a.m. in a Zoom participation format.
Participation is free, so if you are interested, please apply onPeatix.
Below are several headlines of articles covered last Saturday.
Online Salon “Dream Realization Asset Formation School”
An online salon where everyone learns together and motivates each other to succeed in asset formation. It offers member seminars that convey content that cannot be fully delivered by the popular newsletter “Stock Lecture in the Media” and lets you experience the appeal of U.S. stock investing.
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1. Market recap (June 20–June 24)
＜Major indices＞
・Dow Jones +5.4%
・S&P 500 Index +6.4%
・Nasdaq Composite +7.5%
＝Snapshot Version＝
The preceding week’s downtrend stabilized, and through midweek the market held firm. On Friday, thanks to weaker-than-expected economic data released earlier and a drop in commodity prices, expectations for aggressive rate hikes retreated, leading to a sharp rise and a weekly gain for the first time in four weeks.
＝A Little More Detail＝
The U.S. stock market opened the week after a three-day weekend with a bounce from the prior week’s declines.
In Wednesday’s congressional testimony by Federal Reserve Chair Jerome Powell, the stance to curb inflation was emphasized; a recession was not ruled out, but the impact on stock prices was limited.Other Fed officials voiced support for significant rate hikes, but there were no major moves in rates.
However, a spate of economic indicators such as the S&P Global U.S. Manufacturing PMI and the University of Michigan consumer sentiment, which underperformed market expectations and suggested slowing economy, plus lower commodity prices, led to expectations that the Fed would refrain from aggressive rate hikes, allowing for a broad rally into the weekend.
S&P 500 past 5-year chart
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2. This Week's Pick-up Articles
A column that selects asset-formation-related information I find interesting from what I have gathered, ranks it, and comments with a very personal viewpoint. It also includes pick-up articles and comments from Mr. Kaniki Kumakura who introduces books in the Walk segment.
【1】Economic Club Lecture Notes — Nagoya University of Commerce & Economics Professor Yasu Harada (Former Bank of Japan Policy Board member) “What is the New Capitalism?”
The new capitalism under Kishida’s administration initially claimed to prioritize growth over distribution, but in the end growth became important first. There was a discussion that higher labor share would raise wages, but without an expanding overall pie, wages cannot rise.
The idea of correcting capitalism’s distortions is a long-standing and ordinary debate; the term neoliberalism, which is disliked by the left, originally means correcting distortions in capitalism.
For strengthening export power and growth in agriculture, forestry and fisheries, 320 billion yen is allocated, but exports in these sectors total only 1 trillion yen, making it an inefficient expenditure. Japan’s solar power costs are several times higher than in Europe and the U.S.; this is due to the high-cost solar power policies created during the Democratic Party era.
In Kishida’s administration, human capital theory is input-oriented, but without outcomes orientation, productivity will not rise. The low wages for caregivers are not due to capitalism. Under the social insurance system, raising wages would require raising care insurance premiums, which would meet broad opposition.
Centered on Nikkei, there is a growing discussion against a weak yen and against monetary easing. Improvements or declines in trade conditions also depend on crude oil prices; saying that competitiveness is deteriorating would be wrong. Germany, Britain, and France can raise wages even without GAFA, so Japan’s weakness cannot be attributed to GAFA absence.
【Kawada’s Comment】
It’s interesting that they attribute Japan’s low growth to “Japanese people’s aversion to competition.” When people seriously compete, they become intensely focused. Yet today’s Japanese seem to think, “Why go that far,” and in business, “Even if it means chasing money, I don’t want to.” If Japan wants to revive, healthy competition is needed. But “competition” is tiring; people prefer not to do it and don’t want rewards. Is this the current Japanese consensus? If so, Japan’s stagnation will continue.
【2】Nikkei Shimbun Considering the fate of capitalism; is economic growth necessary 6/25
Japan’s economic outlook is becoming harder to see. If capitalism itself is not functioning well, what is the cause? A wave of related books has been published.
Kazuo Mizuno, Professor at Hosei University: ‘The Next 100 Years’ (February 2022, Toyo Keizai) argues that the zero interest rate realized in Japan, Germany and France marks the end of modern capitalism’s endless self-expansion of capital, and there is no need for the economy to pursue growth any longer. The current economy is the wealthiest and there is no need to strive further for more wealth.
Yoshinao Ono, Specially Appointed Professor at Osaka University: ‘The Equation of Capitalism’ (January 2022, Chuko Shinsho) analyzes that as society moves to a mature economy where goods, clothing, and housing are satisfied, continuing a growth-economy method that produces shortages creates problems.
Keishi Saiki, Emeritus Professor at Kyoto University: ‘Farewell to Desire’ (May 2022, Gentosha Shinsho) “The problem is that today is richer than yesterday, and tomorrow must be even richer—perhaps this is our own consciousness.”
【Kawada’s Comment】 Continued
June 25 Nikkei morning edition’s“Reading” column article. It seems to express the inner mind of the current lazy Japanese people. If we truly move in this direction, Japan might disappear from the Earth soon. What do you think?
For example, Saiki says, “The problem is that we ourselves think that yesterday was poorer and today is richer, and tomorrow must be even richer.” If you truly believe this, you should not hope for a richer future than now. How many people would patiently preach such a thing to the youth with a straight face?
When asked, such people respond with a serious tone about “the mind, inner self, and spiritual wealth.” If there is no material and monetary abundance to some extent, history shows what people will do.
Also, material and monetary wealth are always measured by relative standards. For example, today’s average Japanese person is likely living more comfortably than ancient kings. There may be no servants or slaves, but certainly living far more comfortably than ancient kings.
Still, the people alive today want even more comfortable lives and to satisfy more desires; that is the prevailing consensus, isn’t it? Yes, desires are the driving force for living, and the way we use that desire determines a person’s life, the fate of a country, and the future of humanity.
In an era when the world is connected in real time, you cannot keep your citizens in the dark. I cannot agree with the three masters’ sermon of “Endure!”; it would burden and mislead the next generation. Using desires well will lead humanity to a brighter future.
【3】Nikkei Shimbun Banks and Securities, Business Model Transformation; Sumitomo Mitsui Financial Group to Invest in SBI; First, App Integration 6/24
Sumitomo Mitsui Financial Group and SBI Holdings announced on the 23rd a capital tie-up in which Sumitomo Mitsui will acquire 10% of SBI. “SMBC Bank has 27 million customers, SMBC Card has 50 million, SBI Securities has 8.5 million.” The release states that the aim is to remove group barriers and provide integrated services to more than 80 million customers.
The core will be retail-sector bank-securities linkage. A smartphone service that enables account transfers, securities trading, card payments, consumer finance, and other transactions will be developed by 2022.
Measures clearly targeting younger people and working generations could be a turning point for bank-securities linkage. The three megabanks—SMFG, Mizuho, and MUFG—have deepened group-wide collaborations, such as cross-referring customers between banks and brokerage arms. However, the securities businesses under these banks have mainly high-net-worth and elderly customers, limiting the expansion of the customer base.
SMBC Nikko Securities’ customer base is centered on people in their 50s and older, while SBI Securities has about 40% of customers in their 20s–30s. For Sumitomo Mitsui, a partnership with SBI could attract younger generations.
According to the Japan Securities Dealers Association’s 2021 survey, 86% of those in their 20s–30s place internet orders. This compares with 69% for those 70 and older, a gap of more than 10 points. If orders via smartphones are considered, 52% of 20–30s compare to 4% of those 70 and older.
Currently, the asset amount held by the working generation is not large. Thus some finance executives have noted that “even for a market-leading online broker, 10% for 800 billion yen is a hard decision.” Nevertheless, to refresh the customer base is essential; otherwise a slow decline is inevitable. There is also a view toward inheriting wealth from the elderly to the younger generation.
【Kawada’s Comment】
Japan’s banks and securities have a history of mergers and collaborations. When we started our careers, there were more than 10 city banks. Securities were led by four major firms with mid-sized and regional firms in the ranks.
Since then, a lot of consolidation has occurred, and today’s structure is in place. Over the past 20 years, online securities have surged, broadening competition for young customers.
This investment could be an exit for major online brokerages. In the United States, a similar pattern has been evident in recent years, where many online brokers merged with peers or other financial institutions and disappeared.
If yesterday’s U.S. market is a guide for Japan’s future, Rakuten Securities, Monex Securities, and Matsui Securities, which recently went public, may become acquisition targets.
By the way, there is SMBC with Rakuten beneath it, Mizuho with Rakuten, Nomura with Monex, and Daiwa with Matsui. Is this some kind of hint?
【4】Nikkei Shimbun Outlook for U.S. consumer spending under Corona: “Excess Savings” supporting
6/20
Interview with Michelle Meyer, Chief U.S. Economist at MasterCard Economics Laboratory, about the U.S. outlook.
Q) What is the current state of U.S. consumer spending?
Consumption is rising more in stores than online. Dining out and lodging demand, experiences, are expanding. Demand is strong.
Q) Asset prices like stocks have fallen sharply, what about that?
The U.S. stock market is correcting, but historically it remains very high. Consumers are adjusting as wealth changes accumulate.
Q) Are fiscal measures such as cash payments effective, and is monetary policy shifting toward tightening?
Excess savings grew to about $2.5 trillion from March 2020 to January 2022, and some of it is still with households. Until that is exhausted, there will be residual consumption capacity. The Fed’s rate hikes may weigh on consumption, but as supply-demand balance adjusts, growth should settle on a more sustainable path.
Q) Is the U.S. able to avoid a recession?
【Kumakura Comment】
Ms. Michelle Meyer, an economist who moved this year from Bank of America Merrill Lynch to Mastercard, has been more visible in the media since the move.
From her Bank of America days, she has commented by analyzing household consumption trends using her company’s credit card data.
For someone living in Japan, understanding U.S. consumers’ situation is hard to grasp, but keeping her name in mind while reading Nikkei may help with understanding.
As of Q4 last year, like other economists, she did not foresee the rapid inflation in the U.S., and expected Fed rate hikes in the second half of the year.
With that in mind, here is a casual summary of this article...
1) Shopping, dining out, and travel are expanding.
2) People still have room in their wallets.
3) Stocks are in a correction zone historically, though high by historical standards.
4) Robust consumer spending and rising employment support the economy.
Finally, “We must continue to monitor in real time how consumers react to inflation, rising interest rates, and the end of stimulus,” is this perhaps a somewhat resigned stance since predicting the future is not yet possible?
【5】Nikkei Shimbun Kellogg to split into three by end of next year; North American cereal and plant-based foods separated 6/22
U.S. food major Kellogg announced it will split into three by the end of 2023, keeping the main snack-related business and separating its North American cereal business and a plant-based foods business.
Separating diverse growth-speed businesses aims to eliminate the “conglomerate discount,” where firms’ value is reduced due to diversification.
The plan is to list the three entities; Kellogg shareholders will receive tax-free distributions of the two spinoffs’ shares.
The goal is to separate the lower-margin North American cereal business to improve margins and maintain steady earnings; Kellogg’s 2021 revenue was $14.1 billion, with North American cereal accounting for $2.4 billion of that.
The long-term plant-based foods business is also to be spun off; its revenue is about $300 million, with plans to expand beyond the U.S. and explore other strategic options including possible sales.
On the morning of the 21st, Kellogg’s stock rose about 5% intraday.
【Kumakura Comment】
I don’t routinely eat cereal first thing in the morning, but in the U.S. it has been a long-standing healthy food, producing large-scale industries like Kellogg.
Kellogg’s move to plant-based meat, likely from the company’s core business perspective, is a modern corporate decision that positions a future growth area at the forefront of ecological and SDG-related considerations.
Separately, the corporate strategy and financial considerations led to a spin-off to avoid the conglomerate discount.
Conglomerate discount (or premium) is a phenomenon where diversified, global corporations face investor perceptions of over- or under-valuation; it’s a relatively new term in corporate finance, explained in a December 20, 2018 Nikkei article.
What is Conglomerate Discount (today's word)
In M&A, terms like this have only recently become common; many readers may be unfamiliar.
As firms use M&A to grow larger and as new businesses such as Kellogg’s plant-based products grow, conglomerate discount may occur; this is something to keep in mind.
In fact, investors welcomed the news, and Kellogg’s stock reflected this.
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3. Kawada’s Interesting Stocks
This is a corner where we introduce stocks that Kawada has been watching, including information on U.S. stocks.
This Week’s Stocks
Oracle＜Ticker: ORCL＞ Oracle Corporation
Overview
Oracle has sold a variety of software products such as database management, ERP (enterprise resource planning), CRM (customer relationship management), and SCM (supply chain management) through numerous acquisitions, and more recently has been focusing on cloud computing.
What makes the company attractive
Stable earnings and acquisitions
Since acquiring PeopleSoft in 2005, Oracle has continued acquiring enterprise software companies for customer management and human resources management, expanding its business. Once a company starts using Oracle software, switching to other products is difficult, so stable revenue is expected. Looking at Oracle’s quarterly revenue over the past five years, there is seasonality, but it remains stable (Oracle’s fiscal year ends in May).
（Figure 1: Oracle’s quarterly revenue over the past five years）
Operating income and net income have at times been negative due to acquisitions and tax-related one-offs, but the profit trend has continued to rise.
（Figure 2: Oracle’s quarterly profit over the past five years）
Cloud Player
In the first half of 2022, it was a tough period for tech stocks. Even so, cloud businesses are growing steadily across companies. Estimates indicate that public cloud investments by U.S. companies will surpass each firm’s own IT infrastructure investments by 2024.
Oracle launched its own public cloud service, Oracle Cloud, and promoted adoption of cloud versions of its software to realize a synergistic effect. This strategy worked, leading to steady cloud growth and contributing to stock price increases up to last year.
Undervaluation due to Acquisition Announcements
However, on December 2012, Oracle’s announcement of acquiring electronic medical records company Cerner raised uncertainty among investors. The total acquisition price of Cerner was $28 billion, the largest in Oracle’s history, and concerns about integration risks and the retreat of share repurchase plans, coupled with a wider tech sell-off, pushed the stock down.
Nevertheless, after previous declines, for example, the forward P/E was under 13x and Cerner’s post-merger revenue was less than 4x market cap, roughly half of Microsoft’s level.
Risks
There remains potential selling pressure on tech stocks overall. Also, if Cerner’s integration does not proceed smoothly, that is a risk, but Oracle has a history of large acquisitions, so integration risk is expected to ease over time.
（Source: Figures 1 and 2 from company materials）
Oracle’s Basic Data (Source: Company Data, Yahoo! Finance)
(As of June 24)
Stock Price $70.70
Market Cap $188.6 billion
Total Revenue $42.4 billion
Estimated P/E 12.5x
Estimated Yield 1.89%
Headquarters: Austin, Texas
Listed: March 1986
Stock price chart: 5 years
Chart provided by TradingView.com
(This corner is intended for general information only and does not solicit trading of any securities.)
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4. Investment Tips
This corner covers not only “investment methods” and “stock introductions” but also “notable indicators and statements” and “societal and political movements.”
This time, it features an essay by Makoto Okura, who is well known for the company’s YouTube channel “40-Year Investment in U.S. Stocks.”
Rising Long-Term Rates and Falling Stock Prices
[Stock Price = PER × EPS]
The U.S. stock market has fallen sharply since June, with the S&P 500 retreating more than 20% from its high as of the close, entering a bear market. Here we delve into the year-to-date drop of about 23% for the S&P 500 (as of 2022-06-17).
Figure 1: Year-to-date performance of the U.S. stock market
As you know, stock prices are determined byprice-earnings ratio (PER) andearnings per share (EPS). In other words,
Stock price = PER × EPS
Thus, if we calculate how much EPS and PER have changed year-to-date, it looks like Figure 2 shows.
Figure2Change in EPS and PER
EPS rose about 4%, while PER fell about 26%. Next, what drives PER? As discussed in the YouTube series,the constant-growth modelimplies PER is given by the following.
Here, we introduce the concept of Earnings Yield. Earnings yield isearnings per share divided by price. Since ultimately all profits belong to shareholders, earnings yield is calculated using the portion that actually belongs to shareholders as the numerator, i.e.,earningswhich meansearnings yield is the inverse of PER, so
Earnings yield = (Long-term interest rate + risk premium) − long-term growth rate
As a result,the change in earnings yield can be explained by changes in long-term interest rates, risk premium, and long-term growth rate. However, long-term growth rate typically does not change much in the short term, so we can ignore it here. Therefore,
Change in earnings yield = change in long-term interest rate + change in risk premium
The changes in these three items year-to-date are shown in Figure 3.
Figure 3: Changes in Earnings Yield and 10-Year Treasury Yield
Earnings yield rose by 1.68%, 10-year yields rose by 1.86%, and the risk premium fell by 0.18%. In other words,most of the year-to-date change in earnings yield can be explained by changes in long-term interest rates. It is interesting that despite major uncertainties such as Russia’s invasion of Ukraine and China’s lockdowns,the risk premium hardly changed.
Note that “risk premium hardly changed” means the relative attractiveness of stocks versus bonds did not change much. Stock prices fell sharply, so on an absolute basis stocks did become more attractive (the discounting of overvaluation improved), but bond prices also fell substantially (yields rose), making bonds more attractive as well. Therefore,when comparing the two assets, the attractiveness of stocks did not improve relative to bonds.
If long-term rates rise even further
The stock market decline this year has been quite severe, but as shown above, most of the decline can be explained by long-term rates movements. So, if long-term rates rise further, how far could the S&P 500 fall?
Using the same framework (not a very realistic assumption, but for convenience we assume EPS and the risk premium do not change further), Figure 4 estimates the S&P 500 level if long-term rates rise from 2.75% to 4.00% in 0.25% steps.
Figure 4: Long-term rate hikes and S&P 500 (Simulation)
(* Assumes risk premium and expected EPS do not change.)
So, what level of increase in the 10-year yield should we assume? Considering the policy rate and long-term rate converge in the terminal phase of monetary tightening, the terminal rate suggested by FF rate futures (from CME FedWatch) is a useful reference. As of June 17, futures market pricing implies around 3.75–4.00%. Therefore, if long-term rates rise to that level, the S&P 500 could fall toward around 3,400. (Note: futures markets change daily, so review periodically.)
Figure 5: FF rate futures market-implied FF rate and probabilities
[Finally]
This time, I explained a method to estimate where stock prices would settle by moving only long-term rates while holding other factors fixed. This approach yields analyses that align with this year’s results, but risk premium can change significantly with investor sentiment, so not always reliable. In that sense, these calculations may be more of a numerical exercise. Still, once you get used to this approach, you can analyze the market more theoretically.
【Makoto Okura】
From Ehime Prefecture. Graduated from Osaka University, Faculty of Economics in 1984. Doctor of Economics from Saitama University Graduate School of Economics in 2005. Worked at Citibank, N.A., CitiTrust Trust Bank, and Societe Generale Trust Bank (now SMBC Trust Bank). Worked with pension funds and other institutional investors, as well as private banking for the affluent. In 2017, established EagleCapital Co., Ltd. in Kyoto/Higashiyama. CFA charterholder and member of the Japan Society of Financial Analysts.
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5. Walkabout Corner
◇◇Recently visited stores,movies, museums, and books◇◇
～Kumakura Tadashi’s Volume～
A contribution by former securities salesman and avid reader, Mr. Kumakura Tadashi.
Life’s flavors and confessions / Cai Lan (Author), Kazuya Arai (Translator)
When I see the title “Master of Life,” I first think of the late Mr. Yamaguchi Izumi-sensei.
To have unwavering standards in life, to be strict in manners, to avoid excess and luxury, to perform work prudently, and to have a strong take on hobbies such as shogi and horse racing, he was truly Mr. Every Man of the common people. When I reflect on Mr. Yamaguchi’s life, I can only sigh.
Here, Cai Lan also embodies another sense of being a master of life.
In the famous TV program “Iron Chef,” he served as a discerning connoisseur among Hong Kong’s culinary masters, well known for his sharp critiques. His main career, however, is as a Hong Kong film producer, columnist, writer, calligrapher, and gastronome, with a broad range of business endeavors.
Born in August 1941, in Singapore under British Malaya, he studied at Nippon University’s College of Arts and later worked at Shaw Brothers in Hong Kong as the resident manager and translator.
In 1963, he settled in Hong Kong and was invited as deputy president of the film production division at Golden Harvest, contributing significantly to the development of Hong Kong cinema by producing several Jackie Chan films.
Later, he published essays on food and travel in Hong Kong magazines and newspapers, such as Ming Pao, Next Weekly, and Apple Daily (which was suppressed by the Hong Kong government).
In Japan, his works are rarely translated, but in Hong Kong a large number of books have been published, demonstrating his popularity.
Like Mr. Yamaguchi, this person was born in turbulent Southeast Asia, upholds an independent standard, loves the early-morning markets, enjoys luxury and beauty, and lives in a world of fine dining and beautiful women. Cai Lan is a life to be envied even at 80.
This book includes a memorable piece titled “World Breakfast.”
From local Hong Kong dim sum and market bites, to Guangzhou, Taipei, Singapore, Kuala Lumpur, breakfast in early morning Tokyo’s Tsukiji for ramen and sashimi, eating at markets in the local areas of Europe’s continental breakfast, and a trip to New York’s Fulton Market to savor fried shrimp. Cai Lan lists three unforgettable breakfast moments in life.
The third is Saigon just before the fall, where in a basement a merchant friend offers the finest caviar and lobster with champagne, with waitresses being semi-naked, undoubtedly an extraordinary breakfast.
【Kumakura Tadashi】
Joined Daiwa Securities in 1980. Earned an MBA from the University of Chicago Booth School of Business as part of a corporate assignment. Involved in Asia business across Singapore and Hong Kong.
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6. What Private Ultra-High Net Worth Individuals Practice: “Private Investment Strategy”
Hiroshi Ichikawa, who specializes in IFA (Independent Financial Advisor) sales support, explains investment strategies used by the ultra-wealthy in simple terms for readers.
In investment and wealth formation, risk is inevitable. Risk can be mitigated through asset allocation and diversification.
Thus, the importance of “portfolio management” is well known by everyone.
So, how should one concretely construct a portfolio, and how do portfolio management providers build portfolios? Today, we outline the steps.
Step 1: Assessing asset status
First step. Understand your total asset status across multiple financial institutions. List cash deposits, stocks, life insurance, and as much real estate as possible. Include salary income and monthly expenditures as well.
When you make a list of your assets, you often find that although you think your balance is good, you have too much cash or biases in other areas.
What’s important here is understanding your assets and gaining some insight.
Step 2: Determining the investment policy
Next, decide on the policy for asset management. It’s good to have clarity on the following:
Target amount
Investment horizon
Acceptable price fluctuation
Looking at this, few people can answer immediately. It’s natural not to know your risk tolerance.
Keep it simple. Write down your goals, such as by what age you want how much money, what you will use it for, etc.
That’s enough for this step.
Step 3: Building asset allocation
Here, you actually decide the allocation. This step is difficult for individuals. You need to consider expected returns and assumed risks for each asset and determine allocations.
Consulting professionals or referencing portfolios of mutual funds and pensions is advisable here.
With the current status and goals from Steps 1 and 2, Step 3 reveals the broad framework for asset management to achieve them.
Step 4: Selecting financial products and executing the plan
At this point, the percentage allocation by asset class (stocks x%, bonds y%, etc.) is determined. Next, decide what to buy for each asset.
This requires selecting specific stocks and researching the financial institutions where purchases will be made. Decide which individual stocks to buy, which maturities and yields for bonds, and where to source private products if including them.
A financial professional can support this area. For individuals, it’s often best to follow your Step 3 allocations by buying index funds or ETFs.
Step 5: Rebalancing and overall review
With that, portfolio construction is complete. The most important part of portfolio management is what happens next.
Even after constructing a portfolio, you should review the current status at least once a year according to the process. If necessary, adjust the investment policy, asset allocation, or holdings to maintain a current, optimal portfolio.
If asset values drift significantly from the plan, you should rebalance.
For building your own portfolio
We’ve outlined the five steps to concretely implement portfolio management.
So what do you think? For those with financial industry insight, you may be able to do everything yourself, but in practice it’s difficult.
Brokerages, IFAs, and robo-advisors perform this process for investors. For individual investors, applying a few model portfolios is common, while for institutions and the ultra-wealthy, portfolios are built in a bespoke, order-by-order manner.
Portfolio construction is crucial, but due to its expertise, hiring a professional incurs costs.
Personally, if you’re going to use index funds, I think building your own portfolio is better.
Finally
This concludes my series “Investment Techniques for Becoming Ultra-Wealthy.”
I plan a major renewal of my site soon. I will continue to provide information useful to investors. I hope to announce the renewal once it’s completed.
To Kawada, all newsletter staff, and all readers, thank you!!
【Hiroshi Ichikawa】
Investment Techniques for Becoming Ultra-Wealthy
President of Winviser Co., Ltd. After engaging in asset management consulting at SMBC Nikko Securities at branches in Ibaraki, Fukuoka, and Tokyo, he moved into marketing for ultra-wealthy financial products.
He transitioned to an Independent Financial Advisor (IFA) firm, providing asset management advice to the ultra-wealthy, and founded a company that supports IFAs to contribute to Japan’s financial industry development. Currently, he also offers third opinions on asset management to individual investors based on his experience.
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7. Upcoming Activities
◇ Stock Voice: July 6 and 20 (Wednesday) at 11:00
◇ Nikkei CNBC: June 29 (Wednesday) phone interview (Mr. Areno)
June 30 (Thursday) Mr. Okura’s phone interview (Mr. Areno)
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