Starting Spot Purchases of Japanese Stocks Based on Growth Investment Approach

Investing

As I mentioned in a previous article, I’ve started making spot purchases of Japanese stocks. Using a simplified screening method based on Minervini’s growth stock investing approach, I’ve selected the following four stocks:

  • 8136 Sanrio
  • 9697 Capcom
  • 4680 Round One
  • 3399 Yamaoka Family

So far, the portfolio is in the green overall, though some stocks are currently in the red. One key player is Sanrio, which is undergoing significant business restructuring while benefiting from increased tourism demand. I remain bullish in the short term, expecting further growth from Sanrio. The company is transforming its traditional character-driven business model, and with the resurgence of international tourism, demand is expected to grow.

Capcom and Round One are also promising. Capcom continues to see strong sales from its global video game titles, while Round One benefits from growing domestic demand for leisure and entertainment. Both companies are well-positioned for future growth.

Key Player in the U.S. Market—Adding to NVIDIA Position

In the U.S. market, I’ve added to my position in NVIDIA ($NVDA) ahead of potential Federal Reserve rate cuts. The stock is currently flat, but if the Fed implements multiple rate cuts of 25 basis points (0.25%) before the end of the year, it could create a favorable environment for tech stocks.

NVIDIA remains a key player in AI and data center GPU demand, sectors that continue to experience strong growth. Keeping an eye on the Fed’s policy direction, I’m looking for further opportunities to expand my NVDA position. I encourage readers to also pay attention to investment strategies in the tech sector.

Regular Investments in Mutual Funds and Retirement Accounts

My regular contributions to mutual funds and defined contribution pension plans (iDeCo) continue as well. These investments have been delivering steady long-term results. The tax advantages of the defined contribution pension plan are particularly beneficial, allowing for long-term compounded growth and providing financial peace of mind for the future.

Yen Weakness Boosting Assets

Since the majority of my assets are in U.S. stocks or tied to U.S. indices, the recent weakening of the yen has provided a tailwind. The depreciation of the yen against the dollar has resulted in a significant increase in the value of my assets compared to the previous month. For example, the dollar-denominated portion of my portfolio increased by 5%, driving overall performance upwards.

Staying Bullish for the Rest of the Year

Considering the current market situation and the potential effects of a U.S. election year, I believe the stock market will remain strong for the remainder of the year. Historically, election years tend to see increased government spending and supportive policies, which often drive the stock market higher. With this in mind, I plan to remain bullish and continue investing throughout the year.

Future Strategy

Moving forward, I’ll keep a close eye on both Japanese and U.S. stocks, focusing on long-term growth opportunities. As the yen continues to weaken against the dollar, maintaining a healthy balance of dollar-denominated assets will be a key consideration. Especially in the U.S. market, I’ll be monitoring interest rate policies and adjusting my strategy accordingly.

What are your investment strategies moving forward? Let me know in the comments.

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