Investing in Japan

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Investing in Japan - Steven Towns

 Investing in Japan: There is no stock market as undervalued and as misunderstood. Available in print on Amazon (U.S. and EU markets) and electronically via Amazon Kindle in the U.S., Canada, Mexico, Brazil, Japan, India, the UK and across Europe (search your country’s site for “Investing in Japan”). For bulk or international orders outside of Amazon please email contact [at] steventowns.com.

In a classic rally and reversal, Japanese stocks went from the best-performing globally in Q1 2012 to giving back the gains in the following months. Meantime valuations remained extremely attractive broadly and selectively. Then, of course, the market went on a historic rally from November 2012 on the back of “Abenomics.” The Japanese market appears enigmatic but it need not. Most “investors” and market watchers talk, and worry, too much about macro themes.  Similarly, many walks of investors (as well as the closely-watched benchmark indexes) are too focused on the big exporters and mega banks. The end result is not dissimilar: missed opportunity.

Investing in Japan is thoroughly researched (including from original Japanese sources) with 140 footnotes. The book begins with a brief overview of value investing to whet the appetite of those new to value and it is readily digestible for practitioners — provoking thought about ZIRP’s (zero interest rate policy) impact on cost and returns of capital, and similarly how focusing on beta (volatility measure) would prevent alpha opportunities such as following the sharp March 11, 2011, earthquake/tsunami selloff.

Investing in Japan challenges the conventional wisdom of Japan being on its last leg (a kind way of putting it compared to some pundits); provides a comprehensive overview of investing in Japan including various must-know idiosyncrasies; the shortcomings of Japan-focused mutual funds and ETFs, which could save current/potential investors significant time and money; the odd marketing of funds to Japanese investors; everything one needs to know about ADRs; review of select value hedge and mutual funds investing in Japan and value-focused Japanese funds; valuation metrics and comparison to other markets; hedge funds’ investments in Japan; clarifying the matter of low returns on equity; and sharing some surprisingly (positive) information on the strength of shareholder rights and corporate governance in Japan

Reviews and media mentions:

November 2012 feature article of the American Chamber of Commerce Japan’s ACCJ Journal: “Japan Stocks: Savor the low-hanging fruit.” The ACCJ Journal is one of the most widely-read professional English publications in Japan.

The Manual of Ideas (“MOI” — a premium value-focused investment publication) co-founders call Investing in Japan a “great book” and have recommended it on Amazon. The MOI has published two exclusive articles of mine on Japanese stocks (May and June 2012), one of a deep value stock, the other of a so-called superinvestors’ stock (contact me for details or visit MOI for subscriptions/archives).  Invited to present at November 2012 “Japan Investing Summit.”

Barron’s (May 26/27, 2012 edition) discussing the Nikkei’s reversal, bright spots in domestic demand stocks, and Nintendo’s valuation.

Value investor Nate Tobik, editor of the widely followed Oddball Stocks value investing blog (1M+ pageviews), has been focused on the universe of Japanese “net-nets”; click his hyperlinked name for a review of Investing in Japan.

Jim McRitchie’s review – Jim, editor of the highly regarded CorpGov.net, is an investor and pioneer in individual shareowner rights and value enhancement.

Additional reader reviews available at Amazon.