Hello everyone. I’m @olivertomolife and I love investing and shareholder benefits!
In recent years, there has been an increasing amount of talk about investing in Japan, and more and more people are interested in it.
In the midst of this, if you invest with an awareness of past misconceptions, you could end up in a situation where you could lose your assets.
In this article, I’m going to try to clear up those misconceptions by showing you five things about investing in the right stocks!
If you’ve invested before and want to get back into it, this is a must-see!
The author has been investing for three years and has experience in the securities industry.
By reading this article, you’ll understand exactly what makes stock investing so appealing!
Five Attractions of Stock Investment
1 You can support the growth of a company
Stocks gain recognition and become popular from the time they are newly listed.
If you invest from that time, you will be able to experience the growth of the company.
Of course, even for companies that are already listed, you can feel the process of growth as they conduct business in response to the changing times.
Therefore, I would like to invest in companies that will make good use of my capital.
Incidentally, the price of newly listed stocks is very volatile, so I think you can avoid losses by buying companies you really want to support.
2 You can receive dividends from companies
Venture companies and companies that invest in businesses often do not pay dividends, but companies do pay dividends to their shareholders.
In Japan, dividend figures may decrease or increase depending on business performance and other factors, but there are many companies that pay stable dividends.
By finding stocks that seem to increase the company’s earnings year after year, you should be able to benefit from the company every year.
3 You can invest in undervalued stocks
Today, more and more people use online securities, so they can find and buy stocks freely.
In the case of Japan, there are many people who have left investment because they were made to lose a lot of money by the advice of securities companies before.
Since stock prices are often driven by emotions and desires, buying stocks in a low valuation state ahead of time may increase your profits.
However, it is necessary to compare various data and consider the stocks.
4 Receiving shareholder special benefits
Some Japanese companies offer special benefits to shareholders, although less than before.
There are also companies that offer both dividends and special benefits, and some of them value long-term shareholders.
Companies must consider their shareholders to be important in order to raise funds for their business.
Some foreign institutional investors may say that this is unfair, but I believe that the market will be revitalized if more companies do not compromise with such voices and put Japanese investors first.
5 Gains from stock price appreciation
Strangely enough, stocks often go down the moment you buy them.
You may feel as if someone is controlling the stock, and this may be the reason why people say that stock prices are driven by emotions.
If you open the stock for a little period of time, you will be able to profit from its price increase.
Of course, you have to carefully analyze the position and performance of the stock price.
My recommendation would be to invest for the medium to long term so that you can mentally relax and avoid making wrong decisions!
Stock investment situation in the world
Which country do you think is the most risk investing country in the world in terms of national character?
That country is the United States, where an astonishing 50 percent of the nation’s financial assets are in risky assets.
The reason why this figure is so high is because most of the people in the U.S. are risk diversified because they can receive good financial education from an early age.
There are few people who think of taking high risks to earn large profits, and the stance of steadily accumulating profits over the long term can be perceived.
On the other hand, what about the investment situation in Japan?
The Japanese government, which had no money after the war, implemented a savings policy with the aim of utilizing the savings of the people.
At that time, saving money earned high interest, so people naturally began to save.
However, partly due to the arrogance of the securities companies during the bubble economy, a large number of people drifted away from investments, and the number of people who misunderstood investment and speculation kept increasing.
It is a fact that in the late 1980’s, securities companies charged high commissions and borrowed money to compensate for the losses of large investors who had money to invest.
They also took the attitude that they were not responsible for any losses incurred by individual investors.
Against this background, the Japanese view of investment has been twisted into something very different.
I believe that in order to correct such misunderstandings, financial education should be started from an early age.
- You can support the growth of companies.
- You can receive dividends from companies.
- You can invest in undervalued stocks.
- You can receive special benefits from shareholders.
- You can earn profit from the price increase of stock.
I’ve explained the five charms of stock investment!
Investing is a personal responsibility. Investing is a self-responsibility. Make your own final decision after referring to various opinions.
I will continue to provide useful information on investing, so please stay tuned.
Thank you for reading to the end!