【英語要約】ビジネスエリートになるための教養としての投資

Review

If you start investing, the world view will change. And the knowledge gained from your investment will surely lead you to the upper world as a business person in multiple stages. “Investment” here is not “speculation” such as gambling, which involves repeatedly selling and buying while watching price movements. Finding a company that can increase profits in the long term from the perspective of a manager, and holding the stock semipermanently, with the intention of becoming the owner of the company.

Techniques and how-tos are not necessary for such investments. Knowledge of English, accounting, statistics, skills in reading financial statements, and experience in business and investment.

Investing is by no means an easy and profitable "wet hand millet". If you want to invest in a company, you need to thoroughly analyze and judge that company. In other words, it's the same managerial approach as when doing a business of its own. For many business people, you'll have to think at a higher level than you normally do. That experience will level you up. This book offers many important tips for observing a company.

Investment is "martial arts of knowledge". If you take it seriously, not only will you be able to develop yourself in the business world, you will also be able to prepare for a 100-year life. This book will be the best guide for any business person who doesn't want to end up in a life of being "used."

Main points of this book

Point 1

Investing is investing money in a mechanism other than yourself that is superior to you and likely to earn you.

Point 2

Many people are aware that “investment is a shameful thing”. But a good executive is almost certainly a good investor. The Japanese must have a more capitalist mindset.

Point 3

When you buy a stock, you should pay attention not to the movement of the stock price, but to the profit that each company is making. If you buy stocks of a company that can grow profits stably in the future, you can greatly increase your assets without having to sell and buy each.

Investor thoughts lead life to success

Aim for workers 2.0

After graduating from school, the majority of people will come to work as adults. As a member of the organization, work according to the instructions from above to support daily life. That's how "Workers 1.0" work. Those who have only mindsets as workers, are always waiting for instructions, and those who will be used forever. He keeps his time and talent of self-assurance exploited by others.

At the other end of the spectrum is the “capitalist”. Those who are in a position to spend money and spend the talents and time of others.

Worker 1.0 only cares about his surroundings. This is because they only need the ability to respond to the tasks given at their workplace. On the other hand, capitalists have the power to find out the challenges themselves and transform themselves, in order to know the world widely.

However, it is difficult for workers 1.0 to jump into a capitalist. Therefore, first of all, we should aim for "workers 2.0". Rather than being exploited for talent, be prepared to appeal and sell your talent to someone.

When you start to work independently, your world extends beyond the company you belong to, a small community, and relationships. Even if the company you work for goes bankrupt, you can use the skills and connections you have accumulated to open new paths.

In addition, workers 2.0 will naturally come up with the idea of ​​incorporating investment into asset formation in order to realize how to earn income in addition to working themselves.

100-year-old investment

From now on, the number of people who live beyond 100 years old will increase steadily. In order to live a full life as a human being up to that age, the current total amount that each person can earn by working age up to 65 years is not enough. One solution is to invest yourself to improve your skills and gain more experience to increase your income when you are young. However, there is a risk that the company will go bankrupt and that you will get sick, and there are limits to how you can develop your talent. Therefore, a part of the obtained reward is invested in stock investment.

Investing is investing money in a mechanism other than yourself that is superior to you and likely to earn you. It's like having Amazon founder Jeff Bezos work. Even if I can work eight hours a day, if I invest in stocks, I will receive money from a place different from the company or industry to which I belong. The efficiency per hour is drastically increased, and you can increase the time you have in your day.

However, it does not mean that you can get a quick return by investing in stocks. This is because any company needs a reasonable amount of time to increase its corporate value.

Buffett style investment in Japan

Many people think that investment is a way of earning a profit by repeating buying and selling in the short term while watching the price movements of stock prices. However, the method of Warren Buffett, who is called "God of Investment", is completely different. The company value is evaluated as if it is a company that has a profit model that produces profits permanently. As one of the owners, he will permanently hold the selected investee company. In fact, Buffett also took the lead in managing the company as the interim CEO of the scandal.

In order to realize this kind of buffet-style investment for Japanese companies, we have established an in-house venture at Norinchukin. The operation of "buying, but not selling and raising returns" has accumulated results, and in 2009 became independent as Norinchukin Value Investments. The assets under management that started at 10 billion yen are currently growing to 300 billion yen.

Why are Japanese people not good at investment?

Prejudice against investment

It is said that Japan has 1800 trillion yen in personal financial assets. That doesn't mean Japan is a rich country. Between 1995 and 2019, Japan's personal financial assets grew at an average annual rate of 2.3%, while the United States grew 13.3%. The average wage in Japan has hardly changed, but in the United States it has increased 1.34 times. The reason for such a large difference is obvious from the composition of personal assets. In the US, shares of investment trusts are high, while in Japan, cash and deposits account for more than half of assets. Another factor is that Japanese companies are not making the same profits as American companies.

Perhaps the prevalence of "investment" in Japan has been predominantly due to the successful experience of high economic growth due to the post-war exhaustion of the manufacturing industry. It has created an excessive belief that "manufacturing is precious" and a false social belief that "investment is suspicious."

Making an investment is like running a company. Therefore, it is necessary to give investment education and financial education to children.

There's never a way to make money

Whether you are a salaried worker or a part-time job, quite a few people think that there is a job that makes it easy to earn money in a short period of time. However, there is no end to the people who are deceived by the delicious profit story. It must be understood that making money with "investment" is sweating the brain and that it is as difficult as earning money by physical labor. "There is no delicious story."

52.9% of personal financial assets in Japan, or 986 trillion yen, is sleeping in bank deposits that generate almost no interest rates. Japan, which has 1800 trillion yen in personal financial assets, is a rich country in the world. As such, we have a duty to invest as a capitalist and move the world a little better. True investment has the power to advance civilization through the mechanism of capitalism.

Investment is ownership, speculation is a money game

It can be said that what many Japanese people do is "speculation." What is the difference between investment and speculation? It is easy to understand when compared to farmland. When you own a farmland, it is an investment to consider "how much crops can be obtained from this farmland", that is, whether the business of agriculture will continue to succeed. On the other hand, in speculation, we consider only "how much the price of this farm will rise". Most people should think of the former when it comes to farmland.

But when it comes to stocks, the story is completely different. Many people wonder how much profit they can make from their business, not how much they can earn by buying stock.

If you compare a company to an animal, profit is the body and stock price is the tail. Even though it is important that the body is steadily growing over time, many people are fascinated by the short-term tail swing.

In the long run, stock prices are definitely linked to how profits grow. For example, the stock price of the US sporting goods manufacturer Nike is very well linked to "operating profit per share," which is operating profit divided by the number of shares outstanding. When investing in the stocks of such companies, it is completely useless to repeatedly sell and buy. If you bought a stake in Nike 25 years ago, you can just let it go and the value of that stake is now 50 times higher.

However, even if this kind of knowledge is properly educated, there is a risk that stocks of Japanese companies will not lose speculative buying and selling. Compared to the United States, there are overwhelmingly few companies that continue to increase profits.

[Must read point!] What is a company that does not need to sell?

Three elements that support a strong company

Warren Buffett loves Cherry Coke enough to drink every day, but has been holding Coca-Cola stakes for 32 years. Coca-Cola's stock price has increased 20 times during this period. Where is the strength of this company? Only carbonated water with sugar is sold.

Looking at the world, Coca-Cola and Pepsi-Cola are almost oligopolistic among carbonated drink makers. Buffett expected that Coca-Cola's earnings would certainly grow in anticipation of the upcoming global population growth. The higher the middle class, the higher the demand for soft drinks. Even if a competitor is set up, it will take a huge amount of money to build a production facility, sales network, and brand. Coca-Cola has erected a perfect entry barrier.

A company that does not have to sell its shares has a strong structure supported by three factors. The first is “high added value”. This is the very meaning of the existence of a company, and means what is needed in the world. The second is "high barrier to entry". No one can manage the company, and it has such an overwhelming strength that one cannot even think of a match. The third and final point is that businesses supported by added value and entry barriers are on the "long-term trend."

The real long-term current has the impact of irreversibly changing the structure of the world. These include demographics, the desire to live longer, and the deterioration of national finance. It is important to note that even the “long-term investment theme” that has become a hot topic in the stock market can be just fashion.

Of course, even a company that meets the three factors may lose its profit temporarily due to a corona shock or Lehman shock. Even at that time, if the company has an overwhelming competitive advantage that will not be impaired in the long run and strong equity capital that will not go bankrupt in the medium to short term, there is no need to worry.

Misunderstanding of stock investment

If individuals are aiming for asset formation, the starting point is to first create a system that enables long-term investment. Determine the monthly amount of money for asset formation from the flow of salary, etc., and automatically make an investment from the account. If you use a defined contribution pension such as iDeCo, you can forcibly form an asset because it is very difficult to cancel the contract halfway.

It is better not to make long-term investments in individual stocks without knowledge of accounting. Moreover, it is completely wrong to invest just because you are a fan of the company. The same applies to those who are looking for shareholder benefits. If profits are flat, shareholder benefits will lower share prices in the future. It's a common mistake to invest just because you have a high dividend. Simply speaking, a dividend is a state in which an octopus is eating its own foot, and the stock price falls as much as the high dividend is paid.

If you have no knowledge of accounting but feel the need for asset formation, you can buy an investment trust (fund). However, it is important to understand the contents properly. Investment trusts include “corporate stock” and it depends on whether the group of companies can increase profits. For example, unless the TSE 1st section is very well delisted and the metabolism does not progress, even if you continue to hold TOPIX index funds that target all listed companies, you will not get any profit.

Keep in mind that the focus of attention is on the profits that companies make.

Recommendation of reading

The term "investment is a mixed martial arts of knowledge" that the author says refers to "comprehensive strength" that brings together disjointed things into one. If you think about it, we've been studying at school according to a curriculum divided into national language, mathematics, geography, history, physics, and English. However, the only way to improve your ability in business and investment is to combine what you have learned in different ways and formulate your own hypothesis for verification.

In the process, there will be successes and failures. So was the author. But there are some things you can only learn from experience.

If you think of this book as a know-how book for asset management and pick up this book, you may find it hard to hear the assertion that it returns to its basic position. However, for many business people, especially young people, it will be a book that can provide not only wealth formation, but also guidelines for life that should be taken in the future.

Gaining the ability to find a company that does not have to sell its shares forever is the same as permanently increasing its value. If you put this book claiming that in the right corner, you may have the courage to take a new step.

おすすめの記事