Back in june 2021, I told you to buy Tokyo Tekko. This became my largest single position in my portfolio. I also wasted money on a bunch of Hong Kong microcap crap, don’t be like me, don’t diversify with junk. Whenever I deviate from what I know should work, I don’t get lucky, it just doesn’t work. My biggest positions however all make sense, even the Hong Kong ones. Companies with good earnings and healthy balance sheets, that pay a dividend. It’s not super hard.
Let’s look at where we are today. Back in June 2021, you’d pay about 1600 yen for a share. You then had to be patient, as a year later the stock was sitting around 1250, a completely ridiculous price. This illustrates how you have to be careful with leverage: Undervalued stock can become idiotically undervalued, especially when management thinks they can scoop up their own stock by letting it sink for a little longer.
Today it’s sitting at 3245.00 Yen, as the company FINALLY decided to buyback some of its shares. You received 20 Yen in dividend in 2022 and another 240 a few weeks ago. So in total you’d have 3505 yen.
I told you you should be able to easily make 20% a year on the stock. 1600 * 1.2 ^ 2 is 2304. That’s what I promised.
If you listened, which none of you did (LSWMs gonna LSWM), you’d actually have 3505 yen, if you sold today. I sold a few weeks ago myself.
In other words, I got it right, you should have made at least 20% a year, even when adjusted for the 16% the Yen decline in value compared to the Euro over the past two years.
No need to say thank you (because you didn’t listen anyway).
So I will say again, I think I have a pretty decent track record, it just takes some patience for me to be shown right. In June 2022 I would have looked like an idiot. I certainly felt like one.
I have now sold myself, at 3220 Yen a few weeks ago.
Now the naysayers might say there was a risk involved. The steel industry may not grow. But if the steel industry shrinks, companies with a healthy balance sheet will survive, while the ones with debts go bankrupt. Then with the overcapacity gone, earnings improve again, ultimately resulting in the stock price going up. Hence if you bought one with a healthy balance sheet, like Tokyo Tekko, you’d be fine.
People will tell me it’s unethical to make money in the stock market.
Personally, I’d say it’s unethical to work some minimum wage shitjob, or to get a post-post-post-post-doctoral degree, only to work 60 hours a week doing shit work for your professor.
Why? Because you’re reducing the value of labor, by letting yourself be exploited. Don’t do that.
If you don’t like your job, quit it. If you’re not getting paid a fair wage, go on strike, or quit it.
Letting yourself get raped in the ass is ethical, figuring out how not to get raped in the ass is unethical. That’s what idiots will tell you. To me this is an insane mentality.
And people will tell me: “Well these companies pollute the environment.”
Yes I know, so here’s a suggestion: Don’t buy products you don’t need and vote for politicians who will do something about it and protest to demand that politicians do something about it.
But when Japanese people who inherit the shares from their parents dump their shares, don’t let some American hedge fund get a good price. Get that good price yourself.
In a better world, we would all get monthly NEETbux deposited on our bank accounts. But that world does not exist. So you have to earn a living somehow. If you’re qualified to wipe grandma’s ass in the nursing home, get a fair wage for doing that and don’t feel like hanging yourself when you wake up in the morning, then great, go do that. But I’m not even qualified to tie my shoelaces. The only jobs I’m qualified for leave me feeling like hanging myself.
And look, it’s not like you LSWMs are going out there donating your money to people dying of hunger. People shitting on me for investing, are the ones who just don’t have money.
When I tell you to buy shares in cheap companies, with a bit of luck I’m stopping you from:
- Letting your money rot in your bank account, where it’s used by your bank to hand out loans to coal mining companies.
- Being a retard who buys NFTs.
- Donating it to someone with terminal cancer who is going to spend half a million dollar on some therapy that has been around since the 80’s but never shown to work and requires them to fly to the other side of the planet and be treated by an American scammer.
I have devoted myself to:
- Not having children, who would have to grow up in a world that will become uninhabitable and will be unpleasant to live in because it will face the extinction of most megafauna and a lot of deaths.
- Not flying. I will take a bus, I will take a train or I will take a boat when I want to travel. But you won’t find me jumping into an airplane, unless I had some medical emergency that necessitated it perhaps. I will probably never leave Europe.
- Not owning a car.
- Eating a vegan diet, insofar as this is practical to me. If something has 2% honey added to it or 5% pesto added to it which has 10% cheese added to it, then I really don’t give a shit. When I eat peanut butter there are 238 insect fragment in a jar of it too.
Is it vegan to eat peanut butter? No? Then starving is the only vegan option. I don’t eat meat (except for shellfish perhaps). If you don’t eat birds, reptiles, or mammals then it’s fine with me. Ideally ditch eggs and dairy too, but perfect should not be the enemy of good.
This is basically it. I can’t imagine myself owning shares in a company that hurts animals, or produces fossil fuels. But a man has to eat.
And look, it’s good to give away money. I give away money to the homeless, whenever I have change with me.
But before giving away large amounts of money, you need to be REALLY ABSOLUTELY SURE that it’s going to be put to good use. That’s much harder than you may imagine it to be. Even when you give away money to a cause that’s ethically justifiable, that doesn’t necessarily mean you make the world a better place. Sometimes it just means you donated to Bob’s animal sanctuary to buy chicken feed that would otherwise have been paid for by a surgeon wealthier than you who would have completed the fundraiser otherwise.
I think the best thing I could be doing with my life is running a permaculture farm. But to do that, I need to own a large amount of land. That requires financial stability.
Anyway, the next company I’m planning to invest in is Ishii Hyoki. We’ll see how it goes.