tag:blogger.com,1999:blog-6798074091942701235.post8573044318462017514..comments2024-03-29T01:35:09.550-04:00Comments on Can Turtles Fly?: Jean-Marie Eveillard on JapanSivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6798074091942701235.post-48648427079583887612009-10-18T20:26:01.000-04:002009-10-18T20:26:01.000-04:00What you have said are all true but their impact o...What you have said are all true but their impact on your investing depends on the type of investor you are. If you were a contrarian or favour cheap assets then the reasons you mentioned will always be there. If it was the opposite, assets will not be so cheap.<br /><br />As for me, although I point it out so that readers think about it, I'm not as concerned with issues such as the shrinking population, questionable government, and the like. A good busines,, bought cheaply, can overcome those issues. It's sort of like the value investing technique of investing in a good company in an apprently poor macroeconomic or industrial environment. Newspapers would have been considered terrible businesses in the 70's but Warren Buffett and others made a killing off them--even though some may have suggested the macro picture, with emerging television news, was going to kill the paper.<br /><br />My main concern with Japanese companies is their corporate governance. Their ROE, my favourite metric but you can also use ROIC or whatever you like, is terrible. Japanese companies sit on too much cash, don't care about efficiency, and so forth. The apparent "cheapness" of Japanese assets masks this inefficiency problem. It's sort of like buying a gold mine where you can't take out the gold *DONT_KNOW*Sivaram Velauthapillainoreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-13849454323495162182009-10-18T15:03:40.000-04:002009-10-18T15:03:40.000-04:00I watched the interview as well, thanks for your t...I watched the interview as well, thanks for your take.<br />They do have a more favourable government in place, but I'm concerned with the shrinking work base, increasing elderly populace and dependence on energy as opposed to neighbors like Australia who seem to have it all.keithpiccirillonoreply@blogger.com