Quick update

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The Uguisu Value newsletter has ended — the last issue was published in summer 2016. For more information see here.

A lot of interesting investment opportunities (equities) continue to be available in Japan. I have no change in plan with the 20-hole punch card approach with the deep under-valuations featuring profitable companies with sound balance sheets; time horizon arbitrage. There continue to be comparatively fewer opportunities in U.S. equities; I am enjoying the groundwork for future punch card investments — I’ve made only one purchase all year and two exits. I expect to have some new posts and offerings in 2017. Meantime, please find updates on Twitter: https://twitter.com/ActiveInvesting

 

Japan to be world’s 3rd largest economy is good news

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“China poised to pass Japan as world’s No. 2 economy,” reports CNN.com.  Q2 GDP figures from Japan and China show the latter exceeding the former, $1.34 trillion vs. $1.29 trillion. In 2009, it was Japan ahead for the full year, at $5.07 trillion compared to China at $4.91 trillion, according to the IMF. Given the two lost decades now in Japan, this was only a matter of time. Jesper Koll’s (veteran Japan economy expert now with JP Morgan in Tokyo) simple forecast (see quote below) represents a real and substantial opportunity for Japan. This is not a new idea or sudden realization by any means, but it is far more tangible now than ever before; it is becoming more palpable given recent developments such as the Japanese government actively courting Chinese tourists. Continue reading