I would love to talk about investing. As you know, Japan is the second largest economy in the world based on the capitalism, liberal, and democracy. Many people have said Japan’s lost 20 years. But the truth is that Japanese economy is very active even though the working population is decreasing and the country is ageing. I believe Japan experienced everything from the modern bubble economy to aging society first in the world. And as you could see, the unemployment rate have never been worse than 5.5 percent, Japan is trying to keep the equality of wealth in nation.
I will keep update what is happing in Japan, how we are innovating technology and future. Today I want to start you should not miss. Today I would love to write three areas I think it is promising in Japan.
Robotics: Japan is biggest robotic market in the world in 2012. Japan especially is good at industry robot but, in 21th century, Japan is going to go no industry robot. Softbank (TSE:9984), you might know this company because Softbank bought Sprint (NYSE) and tried to buy T-Mobile (NYSE). The Softbank is now 2nd largest company based on following Toyota (TSE:7203), and Softbank is basically company for information technology, but it is going to get into the robotics. Since Japanese have dream, there is famous anime “ATOM”. ATOM can help people with his good heart. And Softbank published Pepper serves people in their home just around $2000, we could buy it like we buy laptop computer. I also want to introduce Yasuzka-denki (TSE:6506) has introduce first industry robot in Japan in 1977 and had leaded robotics in Japan. The company will celebrate 100 years since foundation 1915. I am expecting excellent strategy and contribution for the next 100 years.
Aviation: MRJ (Mitsubishi Regional Jet) is going to start be sell, MRJ is for jet 70 or 90 people. Mitsubishi heavy industries (TSE:7011) is the company used to make “Zero” fighter. We lost the World War II, since then Japan stopped making fighter and airplane. However Mitsubishi is going to use this technology and DNA again, for good purpose this time. Also, I am glad to share HONDA Jet is going to sell production model after they get the approval from FAA (Federal Aviation Administration), just $4.5 million which 15 percent faster and cheaper and 20 percent spacious compare with the conventional small sized business jet. Japanese company could get into this area that will be great. Because making airplane market is hart to get into but once a company could get into the market, the company should be very profitable as Michael Porter says.
https://www.youtube.com/watch?v=0wWVLyppx2A
Tourism: As I mentioned before, the tourism in Japan is expanding. The number of tourist who came to Japan in 2012 was 10 million. Expanding more than 25 percent, we will expecting 20 million by the 2020 which is the year Tokyo will hold Olympic For the tourism, how about Hoshino Resort RIET (TSE:3287)? Japan didn’t have enough expensive places to stay for rich people, but they can provide. They are running 30 properties of ryokan and hotel.
Also, there are huge amount of excellent companies in Japan, Tokyo exchange market. And we are expecting a lot of IPO this year and next year. I will try to keep update, I am wondering if I could add my technical analysis of these stocks here. While, I would like you to take look at Japanese stock market.
To be honest, I think that there are two biggest problems in Japan. One is deflation and the other is ageing. It seems we will overcome deflation thanks to Abenomics, now the problem is the company raised the salary for workers. And I said that the aging society is problem though, we have chances because many countries in Asia are aging as well. To fight our struggle will be applicable to the future Asia. We could do business. Next time, we are going to look at Top 10 Company based on market capitalization in Tokyo stock market.