Need Guidance

[adamu]

I second RetireJapan's warning about going with individual stocks. The odds are stacked against you. Imagine investing 100k and then the value drops to 50k the next day. If that prospect doesn't sound fun, better to do some reading beforehand.

[jcc]

From what I have read in the forum people recommend investing local since the fees are lower.

I'm unsure if you're referring to my research, but if you were I want to clear up a couple of points:

- I generally recommend locally domiciled funds, not stocks. What(the originating nation of the contained stocks/bonds) is inside those funds is not relevant(as in, it could be a japanese fund containing developed nations stocks or it could be one holding japanese stock).

- Japanese stock has generally been sluggish ever since the bubble burst. It might or might not be finally getting out of the swamp it's been stuck in for decades now, but I wouldn't count on it. Japanese stock is free of currency risk and does represent a good % of global stock so it has a place in a balanced portfolio, but I don't think it should be your whole portfolio(fwiw mine is 20% japanese stock and I feel that is high)

- Foreign stock will get double-taxed on dividends, but when you're picking between 8% returns and double taxation or 4% returns and single taxation, that penalty shouldn't put you off.

- I agree with everyone here that you probably should just go with balanced funds and/or etfs. Right now what you're looking to do is essentially gambling(pick a stock and hope it goes up). People do well with individual stocks, but that is generally with value investing, they do their own research, and understand the risks and are holding for the long run. The less study you're willing to do, the further you should stay away from individual stocks

[OkiBum]

Thanks guys!

I am certainly not looking to gamble or a quick return on my money. I am sorry if it came out that way, but I have been doing research on few companies which I have on my radar and trying to assess which company looks like a decent investment. I understand that Japanese companies have been stuck in depression ever since the bubble but then hey! isn't this the perfect time to buy? I mean as I mentioned, I'm not looking to sell these stocks in a month or so..so even if they stocks take another 4-5 years to take off, I am okay with that.

I truly believe that everything in life has risk, its about what you are willing to do to lower the risk, such as research, equipping yourself with the right tools etc.

[RetireJapan]

Thanks guys!

I am certainly not looking to gamble or a quick return on my money. I am sorry if it came out that way, but I have been doing research on few companies which I have on my radar and trying to assess which company looks like a decent investment. I understand that Japanese companies have been stuck in depression ever since the bubble but then hey! isn't this the perfect time to buy? I mean as I mentioned, I'm not looking to sell these stocks in a month or so..so even if they stocks take another 4-5 years to take off, I am okay with that.

I truly believe that everything in life has risk, its about what you are willing to do to lower the risk, such as research, equipping yourself with the right tools etc.

There's been a boom in the Japanese stock market over the last couple of years fuelled by the BOJ's loose money policy which seems to be running out of steam. Caveat emptor!