4 Comments

Oh btw, I prefer to invest in spinoffs that are not distributed via IPO but rather distributed to parent shareholders!

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Hey. I like special situation investing as I think that the market (being almost all passive investment focused as we saw this trend in the past decade) needs a catalyst to realise value where value is missed, that’s why many undervalued stocks remain as so for so many years.

I read a book that I suggest you called “You can be a stock market genius” (i know the name sounds for dummies, but it really isn’t) by Joel Greenblatt (king of special situation investing, made like 50% return for 10/20 years with his hedge fund).

Thank for the info and perhaps will see you in Tokyo!

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Hajimemashite!

Hi, i'm a student living in Milan (from September in Tokyo for a semester).

I'm slowly building a value portfolio, focused mainly on special situations such as spinoffs.

I wanted to get some exposure on the japanese market. Is it too late? Are there any spinoffs incoming this year?

Thank you very much!

I think that after the last pump a lot of previously undervalued stocks are now out of reach, let me know your thoughts!

Douzo Yoroshiku.

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Hello Riccardo! A very interesting investing strategy I must say! Could you elaborate more on why you are focusing on spinoffs particularly?

Traditionally, Japanese companies have had the opposite strategy of spinning out businesses by instead integrating smaller companies into a bigger corporate umbrella (most notably, the Sogo Shosha companies). However, this has recently changed. I will release an article soon on the upcoming IPOs for June and July, but big spinoffs this year worth an extra look is Rakuten Bank (spun-out in April) and SBI Netbank.

In terms of if you have missed the opportunity to enter the Japanese stock market, I definitely don't think so. This is likely the beginning of a more profit driven, shareholder friendly Japanese stock market

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