I asked Mr. Endo, who became a “billionaire” due to small-cap stocks, 11 things start capital, what do you consider important? Motivation and goals, recommended books
After graduating from university, we asked Mr. Hiroshi Endo, who worked for a venture company, started a business at age 26, and became a “billionaire” with small-cap stocks, questions from readers.
1. About the minimum capital to aim for one billion people
“What is the minimum amount required as initial capital to achieve over 100 million in investment?” Does that mean?
If I were to answer the question on the assumption that it was a question with that kind of intention, it would be “1,000 yen.”
If you have 1,000 yen, you can buy second-hand investment books.
Reading investment books is also a self-investment.
Also, if you actually start buying stocks, I don't think there's a problem with 100,000 yen, even in the sense that you get used to it at first.
Considering the number of stocks that can be purchased, I would like about 300,000 yen, but there is no problem even if it's 100,000 yen at first.
If you have funds to invest about 1 million yen, you can buy almost all stocks.
In fact, if you had invested 100,000 yen when Amazon was just listed, it's now about 200 million yen, so it's not impossible to become a billionaire even if you start investing from 100,000 yen.
If I were to answer the question on the assumption that it was a question with that kind of intention, it would be “1,000 yen.”
If you have 1,000 yen, you can buy second-hand investment books.
Reading investment books is also a self-investment.
Also, if you actually start buying stocks, I don't think there's a problem with 100,000 yen, even in the sense that you get used to it at first.
Considering the number of stocks that can be purchased, I would like about 300,000 yen, but there is no problem even if it's 100,000 yen at first.
If you have funds to invest about 1 million yen, you can buy almost all stocks.
In fact, if you had invested 100,000 yen when Amazon was just listed, it's now about 200 million yen, so it's not impossible to become a billionaire even if you start investing from 100,000 yen.
2. How to select stocks, investment criteria, and information acquisition methods
Be sure to check:
① The total market value of that company
② Sales and profit trends
③ Business model
④ Shareholders
⑤ Historical stock price charts
⑥ The company's strengths
⑦ The president, employees, etc.
When deciding whether to actually invest, we place particular importance on the “president and employees” and “business growth potential.”
Somehow, companies are made up of “people.”
No matter how perfect the business model is and the industry as a whole is growing, if the “people” in that company are bad, the company will not grow as expected.
It's the president's weapon, or the way of thinking of employees who gather under that president.
Since such things do not appear in [financial statements], emphasis is placed on whether you can sympathize with the interview with the president.
Also, if employee interviews etc. are posted on the website, be sure to check that as well.
In fields where there is potential for business growth, companies with solid management and employees that are seriously engaged in business will grow almost without exception.
Everyday information is not a special route, and information is obtained from so-called internet news and personal events.
I regularly go to bookstores, etc., look at magazine features and books, etc., and check what people in the world are paying attention to today.
① The total market value of that company
② Sales and profit trends
③ Business model
④ Shareholders
⑤ Historical stock price charts
⑥ The company's strengths
⑦ The president, employees, etc.
When deciding whether to actually invest, we place particular importance on the “president and employees” and “business growth potential.”
Somehow, companies are made up of “people.”
No matter how perfect the business model is and the industry as a whole is growing, if the “people” in that company are bad, the company will not grow as expected.
It's the president's weapon, or the way of thinking of employees who gather under that president.
Since such things do not appear in [financial statements], emphasis is placed on whether you can sympathize with the interview with the president.
Also, if employee interviews etc. are posted on the website, be sure to check that as well.
In fields where there is potential for business growth, companies with solid management and employees that are seriously engaged in business will grow almost without exception.
Everyday information is not a special route, and information is obtained from so-called internet news and personal events.
I regularly go to bookstores, etc., look at magazine features and books, etc., and check what people in the world are paying attention to today.
3. About the first capital to start investing in stocks
I started investing from 300,000 yen that I saved from my part-time job as a private tutor when I was a college student.
Of course, 300,000 yen was not the only source of money, and since I became a member of society, part of the company's salary and bonuses were invested in full, so the principal gradually increased.
Of course, 300,000 yen was not the only source of money, and since I became a member of society, part of the company's salary and bonuses were invested in full, so the principal gradually increased.
4. When to sell shares received as an inheritance
As a criterion for judging whether to sell or not to sell a stock, “assume that once it has been cashed out, do you want to buy that stock again?” That's it.
If the answer to this question is “YES,” there is no problem if you keep it as is without selling it.
If no, let's sell it.
Investment is “the act of continuing to move money to more valuable assets.”
Therefore, if there is a stock or investment destination that is more valuable than the stock received as an inheritance, it is more reasonable to sell the received stock, cash it, and invest in valuable stocks or investment destinations.
Of course, there is also an option to “sell only half and keep half,” but this is what is called diversified investment.
When selecting this, the first “Assuming you've cashed it out once, do you want to buy that stock again?” In response to the question, this is a case where the answer is “I want to reinvest only half after cashing out and invest the rest in something else.”
If the answer to this question is “YES,” there is no problem if you keep it as is without selling it.
If no, let's sell it.
Investment is “the act of continuing to move money to more valuable assets.”
Therefore, if there is a stock or investment destination that is more valuable than the stock received as an inheritance, it is more reasonable to sell the received stock, cash it, and invest in valuable stocks or investment destinations.
Of course, there is also an option to “sell only half and keep half,” but this is what is called diversified investment.
When selecting this, the first “Assuming you've cashed it out once, do you want to buy that stock again?” In response to the question, this is a case where the answer is “I want to reinvest only half after cashing out and invest the rest in something else.”
5. About motivation
I understand the feeling very well. lol
However, “daily fluctuations are fun” does not mean investing; it is a state of playing games.
Of course, it is up to the individual to decide how to use the stock exchange rate,
First, let's be aware that the rules and things to be done are fundamentally different between playing games and investing.
It may certainly be fun to buy stocks with a high turnover or fluctuation rate and look at daily stock price movements and be disappointed, but that is not an investment.
In the first place, buying a company's stock is an act of betting money against “a future where that company will generate greater profits than the future.”
It takes time for the performance of the investee company to grow.
At least, investing today and having stock prices rise tomorrow is not an essential investment.
I'm talking about motivation, but since I'm investing with the expectation that “the company I invested in the future will double, triple, or in some cases exceed 10 times,” of course, that alone motivates me.
If you seek that much return, you honestly don't care about immediate stock price fluctuations of a few percent or tens of percent.
After that, my motivation is to discover companies that have the potential to double or triple the stock price all the time.
However, “daily fluctuations are fun” does not mean investing; it is a state of playing games.
Of course, it is up to the individual to decide how to use the stock exchange rate,
First, let's be aware that the rules and things to be done are fundamentally different between playing games and investing.
It may certainly be fun to buy stocks with a high turnover or fluctuation rate and look at daily stock price movements and be disappointed, but that is not an investment.
In the first place, buying a company's stock is an act of betting money against “a future where that company will generate greater profits than the future.”
It takes time for the performance of the investee company to grow.
At least, investing today and having stock prices rise tomorrow is not an essential investment.
I'm talking about motivation, but since I'm investing with the expectation that “the company I invested in the future will double, triple, or in some cases exceed 10 times,” of course, that alone motivates me.
If you seek that much return, you honestly don't care about immediate stock price fluctuations of a few percent or tens of percent.
After that, my motivation is to discover companies that have the potential to double or triple the stock price all the time.
6. About high-dividend stocks
I hadn't invested in high dividend stocks at all until a while ago.
This is because companies with high dividend stocks manage the stance that “there is no use for money until they issue high dividends rather than investing in something more and increasing the size of the company.”
Therefore, we recognize that high-dividend stocks = companies that have peaked out with no room for further growth.
However, there is one high-dividend company that has recently invested in, and that is NYK Line.
Due to various events such as the confusion caused by infectious diseases, the war between Russia and Ukraine, and the blockade of Shanghai, etc., shipping was disrupted, and shipping charges for containers have risen to an unprecedented extent.
Under such circumstances, NYK Line issued a settlement with net profit of 1 trillion yen even though the total market value was around 1 trillion yen.
The rise in shipping prices may be temporary, but even after taking that into account, it was determined that this was a fairly reasonable investment, so they held NYK Line stock.
However, rather than holding it over the long term in anticipation of an increase in the stock price itself and holding it over the long term, it is an image of a short to medium term holding of about a few months to 1 year, expecting short-term dividends and a temporary shipping bubble.
It's easy for individual investors in Japan to focus only on “dividend yields,” but if they buy stocks just because dividends are high,
There is also a risk that losses of more than dividends will occur due to stock price declines at the timing when dividend yields fall or when corporate performance declines
So please be careful.
If you want to make an investment expecting a “stable dividend,” I think real estate and receivables are more suitable as an investment product than stocks.
This is because companies with high dividend stocks manage the stance that “there is no use for money until they issue high dividends rather than investing in something more and increasing the size of the company.”
Therefore, we recognize that high-dividend stocks = companies that have peaked out with no room for further growth.
However, there is one high-dividend company that has recently invested in, and that is NYK Line.
Due to various events such as the confusion caused by infectious diseases, the war between Russia and Ukraine, and the blockade of Shanghai, etc., shipping was disrupted, and shipping charges for containers have risen to an unprecedented extent.
Under such circumstances, NYK Line issued a settlement with net profit of 1 trillion yen even though the total market value was around 1 trillion yen.
The rise in shipping prices may be temporary, but even after taking that into account, it was determined that this was a fairly reasonable investment, so they held NYK Line stock.
However, rather than holding it over the long term in anticipation of an increase in the stock price itself and holding it over the long term, it is an image of a short to medium term holding of about a few months to 1 year, expecting short-term dividends and a temporary shipping bubble.
It's easy for individual investors in Japan to focus only on “dividend yields,” but if they buy stocks just because dividends are high,
There is also a risk that losses of more than dividends will occur due to stock price declines at the timing when dividend yields fall or when corporate performance declines
So please be careful.
If you want to make an investment expecting a “stable dividend,” I think real estate and receivables are more suitable as an investment product than stocks.
7. What are the goals for investing
The goal was to “get free time for money.”
Investments are just a means to do that.
There are also people who target a specific amount of money, but if you target numbers, if you reach 100 million, the next one is 300 million, the next one is 1 billion... etc.
I recommend that you concretely imagine the life you want to achieve and then set that as your goal.
Investments are just a means to do that.
There are also people who target a specific amount of money, but if you target numbers, if you reach 100 million, the next one is 300 million, the next one is 1 billion... etc.
I recommend that you concretely imagine the life you want to achieve and then set that as your goal.
8. About what I kept in mind to increase my assets
I also originally started investing with my own funds of 300,000 yen, and since my house wasn't particularly wealthy, I didn't have a lot of assets from the beginning.
If I wanted to build consolidated assets under such circumstances,
Even if you aim for an average return on the market, such as 4% per year or 5% per year, it's absolutely impossible while you're alive
I came to that conclusion.
Therefore, we arrived at a method called concentrated investment in small-cap stocks that were thoroughly selected.
It is certainly true that long-term holdings are closer to essential investments, but this is an age of extreme change.
Mobile phones have become popular in the past 30 years, and smartphones have become popular in the last 10 years.
Popular smartphone games will spread at a rapid pace that they can be played all over the world in just one week after release.
Therefore, isn't the idea of long-term investment itself no longer suitable for the current era? I even think so.
Of course, it depends on the industry, so I can't say it unequivocally, but I don't think it's an age where the same company continues to grow much more moderately like in the past.
Therefore, I think what we investors are required to constantly purchase new information, search for companies that are likely to grow in the future, and invest.
If I wanted to build consolidated assets under such circumstances,
Even if you aim for an average return on the market, such as 4% per year or 5% per year, it's absolutely impossible while you're alive
I came to that conclusion.
Therefore, we arrived at a method called concentrated investment in small-cap stocks that were thoroughly selected.
It is certainly true that long-term holdings are closer to essential investments, but this is an age of extreme change.
Mobile phones have become popular in the past 30 years, and smartphones have become popular in the last 10 years.
Popular smartphone games will spread at a rapid pace that they can be played all over the world in just one week after release.
Therefore, isn't the idea of long-term investment itself no longer suitable for the current era? I even think so.
Of course, it depends on the industry, so I can't say it unequivocally, but I don't think it's an age where the same company continues to grow much more moderately like in the past.
Therefore, I think what we investors are required to constantly purchase new information, search for companies that are likely to grow in the future, and invest.
9. About books for beginners
If you are completely about to start investing in stocks, please read this book first in order to get the full picture.
A complete beginner
1. Open an actual securities account
2. Find and invest in stocks yourself
I can fully understand this flow.
Since it's non-fiction, the questions and concerns that beginners run into are also taken up realistically.
It is organized in a conversational format and is very easy to read, so I recommend it.
A complete beginner
1. Open an actual securities account
2. Find and invest in stocks yourself
I can fully understand this flow.
Since it's non-fiction, the questions and concerns that beginners run into are also taken up realistically.
It is organized in a conversational format and is very easy to read, so I recommend it.
That book“Zero money knowledge! Please tell me from the beginning how even an ordinary company employee can make 100 million yen with stocks!》It was a book called.
When you actually start investing, I recommend these 2 books.
How should I find stocks?“Start at 100,000 yen! 100 million yen with concentrated small-cap investment》
It's fine to find an interesting company, but where should I look to make investment decisions?“Start at 100,000 yen! 100 million yen practical bible with concentrated small-cap investment》。
etc. are summarized in an easy-to-understand manner.
How should I find stocks?“Start at 100,000 yen! 100 million yen with concentrated small-cap investment》
It's fine to find an interesting company, but where should I look to make investment decisions?“Start at 100,000 yen! 100 million yen practical bible with concentrated small-cap investment》。
etc. are summarized in an easy-to-understand manner.
10. Expected number of days for trading
It depends on where you invest.
Things that take a short time to spread, such as smartphone games and IT services, will also shorten the time frame for investment.
On the other hand, in the case of a physical store business such as a restaurant chain or gym, it takes time for it to spread, so the investment timeline is also long.
The former is an image of a few months to six months, and the latter is about six months to two years, but the investment period often changes depending on price movements in stock prices.
I am aware that the unit of trading per transaction is “the extent to which the stock price does not collapse significantly when looking at the board.”
If the investment amount inevitably increases, the stock price of companies with a small total market value or companies with a small number of shares in circulation will rise and fall due to their own trading.
Depending on the board, the stop may be higher or the stop will be lower due to my own market trading, so I try to buy and sell little by little while watching the board.
Things that take a short time to spread, such as smartphone games and IT services, will also shorten the time frame for investment.
On the other hand, in the case of a physical store business such as a restaurant chain or gym, it takes time for it to spread, so the investment timeline is also long.
The former is an image of a few months to six months, and the latter is about six months to two years, but the investment period often changes depending on price movements in stock prices.
I am aware that the unit of trading per transaction is “the extent to which the stock price does not collapse significantly when looking at the board.”
If the investment amount inevitably increases, the stock price of companies with a small total market value or companies with a small number of shares in circulation will rise and fall due to their own trading.
Depending on the board, the stop may be higher or the stop will be lower due to my own market trading, so I try to buy and sell little by little while watching the board.
11. About mutual funds and individual stocks
The image of a mutual fund is like buying a lucky bag with an assortment of stocks selected appropriately by others.
Considering that lucky bags are an assortment of things that were originally unsold, I honestly don't really recommend mutual funds.
This is because, basically, mutual funds are not products for investors to make money, but products for securities companies to make money.
If you want to double or triple your assets, I think it is essential to invest by narrowing down investment destinations rather than diversified investments.
Considering that lucky bags are an assortment of things that were originally unsold, I honestly don't really recommend mutual funds.
This is because, basically, mutual funds are not products for investors to make money, but products for securities companies to make money.
If you want to double or triple your assets, I think it is essential to invest by narrowing down investment destinations rather than diversified investments.
Click here if you would like to ask Mr. Endo a question
※Not all questions can be answered.
※Not all questions can be answered.
Author: Money Guru Editorial Department
Last updated: November 1, 2022
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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