We don’t know when the Japanese economy will recover. We just think that Japan will always recover.
is investing in Japan. We have to cover our ears and pick up some bargains
Attendee: When participating in the Japanese market, are you more sensitive to market fluctuations, unlike in the US market, you don’t pay any attention to market fluctuations?
Browne: is not. We invest in the Japanese market because stocks are cheap, for example, you can buy a Coca-Cola bottled distribution company for less than the book value—half the book value of this company is government bonds and cash. If calculated based on the depreciation method adopted by American bottle companies, Japanese bottle companies traded at about 7 times the price-to-earnings ratio. If that was an private company , the private equity foundation jumped up to buy it. It's really too cheap!
So, we ignore the fluctuations in the Japanese market. The only thing that can affect us is that we do not consider companies that build competitiveness on trade barriers . We invest in companies that are competitive on a global scale and buy stocks that are even lower than net cash. We don’t care whether anyone says good things about Japanese companies.
(Editor's note: The contributors here are applauding.)
We think one day they will recover, just like New York...
Br own: However, 20 years ago we thought that this country with a population of 125 million would dominate the world, and we thought one day they would solve their problems, but they have not solved them so far, one reason is that their pain is not deep enough...
Let's look at New York in the mid-1970s, when you could buy Parker Street in New York for $20 per square foot Avenue apartments are now sold for as much as $3,000 per square foot. No one had the courage at that time, except those who could not leave work in New York.
Some people will say: New York has a population of 8 million, and they will not leave New York. This is a huge wealth. One day, New York will recover. Even if New York ends up going bankrupt, the U.S. government will pay for police and firefighters—that’s what I need.
Value investors enter early, sometimes this is the only way
Browne: This is how we invest in Japan, we don’t know when it will recover. Growth investors hope to buy after seeing the exact signal of Japan's recovery, but value investors will enter early.
The Japanese stocks we have are still falling, falling and falling after buying, while we are constantly buying and buying. Currently, Japanese stocks account for 15% of our total positions . Without any signs, Japan's economy has recovered! If we enter again after it recovers, we cannot get our current position, and we bought it before it recovers!
selected from "Investor Digest" "Value Investment Still a Future"
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