I decided to go fishing in the Japanese stock-market abyss. Found 4 incredibly undervalued companies

[janvande]

@oksana126 “Never invest in a business you cannot understand.” – Warren Buffett

 

[oksana126]

@janvande Yes, very true. Especially Tocalo is in a complex industry that I would only invest in if I have experience in it. However, many companies are easier to understand than people think at first glance.

Central Automotive Products for example has a huge car dealership arm, so if you've ever bought a car in Japan you have a pretty good overview of what that is. On top of that, their parts are complex, but they are very closely aligned to Japanese car brands in terms of profit, which are in many ways easier to understand. Sure, you can't know if Toyota etc. will go for their parts in the future, and that is probably where you need to actually work in the company or as a fund manager to get that kind of insight.

 

[caleb1823]

@oksana126 Those companies do look interesting, I haven't researched them yet, and I'm not that knowledgeable. But, Miroku Jyoho Service might be driven off the market? Many other similar services exist (if my understanding of your blog is correct, they're similar to moneyforward that offers financial and tax systems?)
Will definitely look into them over the weekend.
Personally, when investing investing in smaller companies I make the decision based on "do I want to own this company?" So rather than stock price, if the business is good then maybe take it private in the future? Probably easier than starting a company from ground up

 

[oksana126]

@caleb1823 Yeah, I talk a bit about it here. Companies like Freee and even foreign competitors are honing in market share. However, Japanese companies are conservative and as shown, no major competitor has really stolen any customers from MJS, the pie has just gotten larger...

Then again, it's never fun investing in a software company that just relies on existing costumers, so I'd be a bit careful investing in them if they don't show significant growth in the short run...