Japanese Equities: An Opportunity 25 Years in the Making - With Peter Tasker and Mark Pearson, Co-Founders of Arcus Investment
Episode 16, Feb 22, 06:00 AM
In this conversation, Peter Tasker and Mark Pearson, Co-Founders of Arcus Investment, explain the evolving Japanese political & economic landscape in 2024.
In 1989, Japan represented 43% of the world’s stock markets. The eight largest banks in the world were Japanese, as were 7 of the world’s top 10 corporations. 10 years later not a single Japanese company made it into the top 10.
After an epic bubble and even more epic bust, today, 34 years later, Japan is the world’s 3rd largest economy, the world’s largest creditor nation, the second largest stock market globally, has the most undervalued currency of the major economies, and has the highest debt to GDP ratio of any G7 nation.
In this conversation, Peter and Mark, Co-Founders of Arcus Investment, explain the changed landscape, politically, economically, and from an investment perspective.
The discussion begins with an overview of Arcus’s approach to investing after 25+ years managing approximately $2bn in AUM, as well as their value bias, what excites them, and an overview of the key macro forces shaping the world’s third largest economy.
They reference that almost half of TOPIX trades below book and 40% of companies have no material research. They share their ‘bread and butter’ process of recycling the profits of appreciating stocks into undervalued firms (inspired by Buffett).
They speak about structural tailwinds, shifting allocations to equities, TSE reforms to “shame” companies resistant to change, the relatively cheap yen, and where they are identifying value and investing.
MMP Newsletter | MMP LinkedIn | Contact Arcus Investment
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MONEY MAZE PODCAST - All content on Money Maze Curated Podcasts is for your general information and use only and is not intended to address your particular requirements. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions. We try to provide content that is true and accurate as of the date of publishing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Guests, presenters and other individuals involved in the production of this podcast may have positions in any of the investments discussed. Please note, Money Maze Curated Podcasts are funded by the interviewee or their featured organization, unlike the Money Maze Podcast (which is funded by third party advertising). Full disclaimer here.
ARCUS INVESTMENT LIMITED - All content on the Podcasts, including ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied, are for informational, entertainment, or educational purposes only and should not be construed as an offer, solicitation, investment advice, or recommendation to buy or sell a security or other investment product or to engage in or provide investment advisory services or activities. The information discussed in the Podcast is not intended to constitute investment, legal, tax or any other type of advice. Individuals should not use the information discussed on the Podcasts as the basis of an investment decision. The information discussed may include errors, inaccuracies or “forward looking statements,” which are inherently unreliable. Any investment involves risk. Individuals should undertake their own due diligence before investing or consult a licensed financial advisor before making any investment decisions. The value of investments in any financial assets may fall as well as rise. Investors may not get back the amount they originally invested. Past performance is not an indicator of future performance. Arcus conduct business only with professional clients, as defined by the Financial Conduct Authority. Arcus Investment Limited is authorised and regulated by the Financial Conduct Authority.
After an epic bubble and even more epic bust, today, 34 years later, Japan is the world’s 3rd largest economy, the world’s largest creditor nation, the second largest stock market globally, has the most undervalued currency of the major economies, and has the highest debt to GDP ratio of any G7 nation.
In this conversation, Peter and Mark, Co-Founders of Arcus Investment, explain the changed landscape, politically, economically, and from an investment perspective.
The discussion begins with an overview of Arcus’s approach to investing after 25+ years managing approximately $2bn in AUM, as well as their value bias, what excites them, and an overview of the key macro forces shaping the world’s third largest economy.
They reference that almost half of TOPIX trades below book and 40% of companies have no material research. They share their ‘bread and butter’ process of recycling the profits of appreciating stocks into undervalued firms (inspired by Buffett).
They speak about structural tailwinds, shifting allocations to equities, TSE reforms to “shame” companies resistant to change, the relatively cheap yen, and where they are identifying value and investing.
MMP Newsletter | MMP LinkedIn | Contact Arcus Investment
--
MONEY MAZE PODCAST - All content on Money Maze Curated Podcasts is for your general information and use only and is not intended to address your particular requirements. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions. We try to provide content that is true and accurate as of the date of publishing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. Guests, presenters and other individuals involved in the production of this podcast may have positions in any of the investments discussed. Please note, Money Maze Curated Podcasts are funded by the interviewee or their featured organization, unlike the Money Maze Podcast (which is funded by third party advertising). Full disclaimer here.
ARCUS INVESTMENT LIMITED - All content on the Podcasts, including ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied, are for informational, entertainment, or educational purposes only and should not be construed as an offer, solicitation, investment advice, or recommendation to buy or sell a security or other investment product or to engage in or provide investment advisory services or activities. The information discussed in the Podcast is not intended to constitute investment, legal, tax or any other type of advice. Individuals should not use the information discussed on the Podcasts as the basis of an investment decision. The information discussed may include errors, inaccuracies or “forward looking statements,” which are inherently unreliable. Any investment involves risk. Individuals should undertake their own due diligence before investing or consult a licensed financial advisor before making any investment decisions. The value of investments in any financial assets may fall as well as rise. Investors may not get back the amount they originally invested. Past performance is not an indicator of future performance. Arcus conduct business only with professional clients, as defined by the Financial Conduct Authority. Arcus Investment Limited is authorised and regulated by the Financial Conduct Authority.