Hello everyone. I’m @olivertomolife and I love investing and shareholder special offers!
A lot of people who are starting to invest are attracted to the shareholder benefits of companies!
In fact, I am one of them, but there are some stocks that are recommended for beginners and some that are not.
If you suddenly start investing in risky investments from the beginning, you will be in trouble.
So I’m going to introduce three long-term investment stocks that are easy to buy, even for beginners!
You can buy them even within the framework of NISA, so don’t worry.
The author has been investing for three years and has experience in the securities industry.
By reading this article, you’ll know which stocks I recommend for long-term holdings!
- What are the advantages and disadvantages of long-term investment?
- Merit 1: You don’t have to worry about stock price movements.
- 2 Receive dividends and special benefits over the long term
- 3 Increase in price gains
- Disadvantage 1: The possibility of salting in
- 2 Risk of price decline due to deterioration of benefits
- 3 Risk of buying more stocks due to reverse stock split
- How to find long-term stocks to hold
- Three stocks I recommend for long-term holding!
What are the advantages and disadvantages of long-term investment?
There are advantages and disadvantages to holding stocks over a long period of time.
Here is a summary of what happens with long-term investment.
Merit 1: You don’t have to worry about stock price movements.
By holding stocks for a long time, you don’t need to worry about short-term stock price movements.
Of course, you should keep an eye on the company’s financial results and dividends, but there is no need to be attached to the screen every day.
It is said that trading in a short period of time can have a bad effect on your mental health, so long-term investment is recommended.
2 Receive dividends and special benefits over the long term
Personally, this is the most attractive point of long-term investment, and although it is limited to stocks with special benefits, you can get the two benefits for a long time.
I think regular dividends and special benefits are useful in our daily life, and it is the best part of investing.
But there’s always the risk that the dividend will be reduced or the special benefit will be discontinued, so make sure you check the company info regularly!
3 Increase in price gains
Investing for the long term allows you to accumulate gains in value.
It is important to make profits little by little over the long term, rather than making huge profits in the short term.
Once a certain amount of profit is made, it is a good idea to sell the stock for a profit.
In the case of my preferential investment, there are no long-term benefits, and if there is a profit of 100,000 yen, I will sell the shares.
Disadvantage 1: The possibility of salting in
By investing for a long period of time, there is a possibility that you will not be able to expect a price increase.
There is also a risk of becoming a salted stock due to company scandals or significant losses.
I personally do not recommend cutting your losses, but if the company’s finances are bad, you may want to consider it.
2 Risk of price decline due to deterioration of benefits
Many stocks that offer special benefits to shareholders are held by individual investors.
If the conditions of the benefits become worse, individual investors will give up their stocks.
As a result, your stocks may be affected, so you should keep a cool head about the situation.
3 Risk of buying more stocks due to reverse stock split
Companies that want to meet the requirements of the TSE will conduct a reverse stock split.
This reverse stock split may change the number of shares in your stock.
For example, if you own 100 shares of a stock priced at 1000 yen, and that stock is priced at 10000 yen, you will have 10 shares after the change.
Since the TSE’s minimum number of shares to be purchased is 100 shares, you need to take care of this before the change.
The way to do this is to buy the remaining shares before the change, or to request the securities company to buy them back after the change.
How to find long-term stocks to hold
For those who want to hold stable long-term stocks, here are some recommendations on how to find them.
First, look up the stocks you are interested in on stock information websites.
Then check the financials, dividend payout ratio, capital adequacy ratio, and overseas business ratio.
If you find a company with good numbers, then look at the chart and choose a company whose movements are stable.
These companies can be held for a long time.
Three stocks I recommend for long-term holding!
I recommend the following stocks for long-term holding.
KDDI is one of the three largest telecommunications companies in Japan, and it is also a company that actively returns profits to shareholders.
I recommend it because of its continuous dividend increases and its long-term preferential benefit plan!
Detailed KDDI shareholder benefits are introduced in the following article.
2 ORIX Corporation
ORIX, which operates a variety of businesses from finance to real estate, has stable performance even in a recession.
This is because the company diversifies its risk by diversifying its businesses.
Although the record for consecutive dividend increases has been broken, I can recommend the company because of its long-term preferential treatment for shareholders.
Detailed information on ORIX’s shareholder benefits can be found in the following article.
Scroll, which sells catalog mail order products to general consumers, can be recommended as a stock that can be purchased for less than 100,000 yen.
You can receive stable dividends and shareholder special benefits twice a year.
The shareholder special benefit is a long-term incentive, so it is a good idea to hold the stock for a long time.
Detailed information about Scroll’s shareholder benefits is presented in the following article.
- There are advantages and disadvantages to long-term ownership.
- Find investments in companies with good shareholder returns.
- Consider selling at a certain level of profit.
I’ve introduced you to three stocks I recommend for long-term holdings!
Investing is your own responsibility, so make sure you make your final decision after referring to a variety of opinions!
I will continue to introduce Japanese stocksin the future, so please stay tuned.
Thank you for reading to the end.