The journey to financial freedom

[posted on September 20, 2003]

Let's enjoy investing Japan through BOOM

Learn from history above predict after 3 decades!
The new times is coming.
The history tell us to not misjudge the changing tide.

In particular, your government, especially OECD countries, have assured of a livelihood after your retirement through the economic growth period after the World War Second.
Many citizens work until they become eligible for a pension.
Having a guaranteed income from pension bring about lifestyle stability after retirement.

But OECD said "Nearly all OECD countries face the need to reform their pensions system,"on the article "Ageing Societies and the Looming Pension Crisis."
So "the Spring of the Pension" is getting dry.
Well-off pensioners may be a thing of the past in the near future.
"Your government and company cannot assure of a livelihood after retirement any longer," said Robert Kiyosaki, the author of "Rich Dad Poor Dad.

We must find "the NEW Springs."
Nobody knows where they are, but we must find them by our own effort.
Our effort bring us a good friends on our way.

Won't you become Rich Dad? Is Zipangu (Japan) still the Land of Gold?

In the 13th century, Marco Polo introduced Japan as "Zipangu, the Land of Gold" to Europe.
So there have been an extraordinary "ten-bagger" like it grows on trees in Japan.
Is Zipangu (Japan) still the Land of Gold?

I already started "my plan of the journey to financial freedom" when I posted my opinion "Learn from history above predict after 3 decades!" in Japanese on some BBS on September 14, 2003.
I restarted stock investments by taking advantage of recovery Japan's and American stock markets since this May, but it was just only a kind of the game.
Many stocks gained two or three times its original value in the past 2-3 months.
But many investors seem to think that Japan's stocks are NOT suitable for property held for a long time because of stock market slump in the past more than decade.
Hence they have gained short swing profits.
So I didn't think to be able to find Peter Lynch's elusive "ten-bagger," a stock which will gain ten times its original value, among Japan's stocks.
And I have tried to find it among foreign stocks as well as other investors.
In fact I have enjoyed stock investments in the foreign securities account.

If it is true that the biggest chance that ordinary people become rich is in the Chaos, we can get a chance to be rich in this times.
So Yahoo Japan Corporation's (4689.JQ :listed TSE from October 28, 2003) price hit an all time high with 167,900,000 yen (US$1,507,180 / US$1=111.4 yen) on February 22, 2000.
According to the table of its historical price (in Japanese), it have split ratio of 2:1 every end of March and September since 1999 except 2001.
And its adjusted close price (with * sign) provides the closing price for the requested day, week, or month, adjusted for all applicable splits and dividend distributions.
Data prior to the split is adjusted using a multiplier determined by the split ratio.
Data prior to the dividend is adjusted using a multiplier based on dividend as a percentage of price.
To put it simply, for example on September 5, 2001, those who could buy Yahoo Japan Corporation's stock for 2 million yen (US$16,780 / US$1=119.2 yen) per a share would gain ten times its original value in only 2 years.
So it's just "ten-bagger."

See stock splits' schedules on Yahoo-Briefing Splits Calendar or

Yahoo Japan Corporation have split ratio of 2:1 every end of March and September except 2001 even after burst of the IT (information technology) bubble.
I expect it will be repeated in the several years, whoever spread groundless rumors.
Honestly speaking, ordinary people must waver over their decision when they buy its stock more than brand-new car.
Yahoo Japan Corporation's stock could be obtain less than 2 million yen (US$16,660 / at an average rate of US$1=120 yen) only during this last year as far as its historical price shows.
If it repeats to split ratio of 2:1 every half a year, and its price recovers to 2 million yen after 3 years, I will theoretically gain 64 times its original value.
So I will be a millionaire.
Even if its price posts an all-time low at 900,000 yen at that time, I will gain 57,600,000 yen.
If it price hit at 5 million yen, I will gain 320,000,000 yen.
It's greatest and wonderful like hitting the lottery jackpot!

Am I a great fantasist? Or an exceptional braggart?
To my knowledge, other Japanese investors hardly say like this on the web sites and books.
I invested to Yahoo Japan Corporation for 2 million yen (US$16,660/ US$1=120 yen) jumping in at the deep in order to substantiate whether my idea is fantastic story.

Fortunately stock split was announced in several days after my investment.
Hence my stake would be converted into 1 million yen per a share since September 25, 2003.

History repeated itself.

Ordinary employee, I dream to be rich by seed money of 2 million yen; however, I expect a dream-come-true in the near future.
My friends hardly took my idea seriously.
But I don't care about it.
Will my plan end in failure?
My life never ends by a loss of 2 million yen.

Yahoo Japan doubles profit on October 24, 2003

Japan's top Internet portal, Yahoo Japan Corp, says net profit doubled in July-September (03) from a year earlier, boosted by steady growth in its online auction business and brisk demand for web advertising.
It said group net profit in the latest quarter grew 111 percent from last year to 5.91 billion yen ($53.6 million/GBP33.5 million). Its online auction service is well-positioned to fend off competition since it is Japan's largest, with 3.23 million registered members, offering users the greatest access to potential sellers or buyers.
Yahoo Japan's results come two weeks after Yahoo! Inc of the United States posted strong quarterly results and raised its annual earnings forecast due to a red hot web advertising market.
Yahoo Japan is owned 41.94 percent by internet investor and broadband operator Softbank Corp and 33.5 percent by Yahoo! Inc.
Shares in Yahoo Japan rose 62 percent in the July-September period, compared with the Nikkei average's 12.5 percent gain.

to top of this page

Capital Gains - Living like Americans in the latter half of the 1990s
Are Japan's stock exchanges speculative?
(The journey to financial freedom - Part 2)

Back to the index page of my essays