RetireJapan

I think it might be useful to have a 'post your stock purchase ideas here' thread to allow us to: a) think things through in public, b) get feedback from others, and c) share our thought processes.

Of course everyone should understand that these are just thoughts and not suggestions, and no-one should go out and buy stuff they don't understand (and if they do, they certainly have no grounds to complain about it later -carpe emptor).

Having understood that, have at it

Hey,

I am interested in whether we could collect potential investments and their advantages/disadvantages.
I started investing last year and probably like many new investors I invest in too much, I am looking to slim my portfolio down but am still not sure which composition.

For example I am currently investing in these index funds:

ニッセイ日経225インデックスファンド
投資信託 ＜購入・換金手数料なし＞ニッセイＴＯＰＩＸインデックスファンド

In both of the above I invested smallish amounts just because I wanted to spread some investments in Japan. I don't know anything about the indexes hers so I thought dividing it between Nikkei and TOPIX may be good.

投資信託 ＜購入・換金手数料なし＞ニッセイ 外国株式インデックスファンド

It seems to me this one is actually mainly or only buying american stock and may or may not be similar to the SPY, not sure how they compare

投資信託 ＜購入・換金手数料なし＞ニッセイ 外国債券インデックスファンド
This one buys US treasury bonds, I am not sure it buys other global bonds and whether its long or short term treasuries or both.

SPY SPDR S & P 500 ETF
I put some money into the SPY but that was when rakuten charged 25$ fee and I thought that is way too much so for now until fees change I stopped. It is unclear though, SPY and the nissei foreign stocks fund are probably heavily correlated.


1305 ダイワ上場投信－トピックス
1306ＴＯＰＩＸ連動型上場投資信託

I own both of those etfs, they are pretty much the same except that 1306 gave me more dividends in the past/

1343 ＮＥＸＴ　ＦＵＮＤＳ　東証ＲＥＩＴ指数連動型上場投信
1557 ＳＰＤＲ　Ｓ＆Ｐ５００　ＥＴＦ
1699 ＮＥＸＴ　ＦＵＮＤＳ　ＮＯＭＵＲＡ原油インデックス連動型上場投信
2044 ＮＥＸＴ　ＮＯＴＥＳ　Ｓ＆Ｐ５００　配当貴族（ネットリターン）　ＥＴＮ

All these four I bought when I started out and was just randomly searching for funds/etfs, I am not happy or unhappy with them but will probably get rid of all of them.
I think I have seen people talk about 1343 on this board for dividends but the performance of the REIT itself is at least for me pretty bad so I am looking to get rid of it soon


1698 上場日本高配当
8986 日本賃貸住宅
8411 みずほフィナンシャルＧ
7201 日産自動車

I am holding these three for dividends, with 1698 I thought I can buy a ETF/fund which is better than individual stocks but so far I read the yield is actually not that amazing, so I have a few individual companies that I deem as stable.


I am looking to add some emerging markets and maybe a small fraction of commodities so once my NISA application finished I will probably rebalance to something like:

5% 投資信託 ＜購入・換金手数料なし＞ニッセイＴＯＰＩＸインデックスファンド
50% 投資信託 ＜購入・換金手数料なし＞ニッセイ 外国株式インデックスファンド
10% 投資信託 ＜購入・換金手数料なし＞ニッセイ 外国債券インデックスファンド
15% 1327 EasyETF S&P GSCI Capped Commodity
10% + ? emerging markets maybe “たわらノーロード 先進国株式”

10% dividends:
1698 上場日本高配当
8986 日本賃貸住宅
8411 みずほフィナンシャルＧ
7201 日産自動車


I would be happy for ideas and or which indexes / stocks you allocate for growth/security/dividends, maybe less america and a bit more global? I am a bit inspired by theo which I think is doing a good job on diversifying.

I bought into 1343 close to 3 years ago and it was doing decently price wise compared to my other funds (1550 & 1348) which were dropping. Nowadays, it's the opposite, but 1343 gives out good dividends so I bought more, this time in my nisa allowance to save on capital gains taxes. I read in one book that Reits are good to have in the tax-free account, so I will sell taxable 1343 holdings at some point and rebuy it in the NISA. I don't have much though so it's nothing pressing.
I just think that since 1343 is Japanese reit, with the Olympics coming up, that industry should boom at some point.

One thing that has helped me is to try to design the portfolio first in terms of asset classes, then figure out what to buy.

The book Millionaire Teacher is a nice introduction to this, or Global Asset Allocation (link in the post below).

I wrote a bit about it here: http://www.retirejapan.info/blog/portfo ... allocation

So I did a screen for Japanese stocks with high(ish) dividends, and came up with the following:

Related to the OFF shops
https://finance.google.com/finance?q=TY ... 0QTgh6eAAQ

* Electric machinery
https://finance.google.com/finance?q=TY ... 0gSZio_wAQ

Food manufacturing
https://finance.google.com/finance?q=TY ... 0gSZio_wAQ

Electric materials:
https://finance.google.com/finance?q=TY ... 0gSZio_wAQ

Any thoughts? Togami (the second one) seems quite interesting.

I would be happy for ideas and or which indexes / stocks you allocate for growth/security/dividends, maybe less america and a bit more global? I am a bit inspired by theo which I think is doing a good job on diversifying.

TheDorian, I used this site to decide my asset allocation. http://myindex.jp/user/myaa.php#tab_create
Just put in the numbers and see how it compares to other portfolios. I'm pretty new to this and If found it really helpful as I didn't have a clue. I ran my first portfolio ideas through it and tweaked them until I got a good balance between risk and return.

The Nissei fund you quoted follows the MSCI Kokusai Index (excluding Japan). It's about 65% US stocks, the rest are other developed markets. Likewise the bond fund covers all developed markets. They are both internationally diversified. Currently I think the US has about 60% of the world stock market, Japan about 8%, other developed markets 24%, and emerging markets 8%.

Personally, I try to avoid things that pay out dividends nowadays and just focus on the total return. These are my reasons:
1. I don't need the income now as I'm saving for retirement. I'm more bothered about growth.
2. Dividends are a pain to reinvest and if you've maxed out your NISA for the year, you either have to wait until next year or reinvest them in a taxed account.
3. Once the time limit is up on your NISA you'll start paying tax on any payouts. Mutual funds are more tax efficient as tax payments are deferred until you cash out.

The Nissei funds are a good choice. They're cheap and the indices they track include dividends, so you don't really lose out on anything. You just don't get the satisfaction of cash landing in your pocket every now and then.

In the absence of being able to subscribe to and pay for an English advising group and not being able to read the published research, I have a hard time choosing stocks here in Japan.

My strategy here in Japan for stock purchases is to look at the top ten holdings of various ETFs here, and buy a few of those stocks. So I have things like Toyota, Takeda pharmaceuticals, NTT, Sumitomo mitsui Financial, Japan Tabacco, and JP Seven & i holdings.

I know this is not a good strategy, but it has worked for me for the past 6 years fairly well in that I make more on my individual stocks than my ETFs.

I don't pay much attention to dividends as they seem so small in Japan. I just try to sell stocks when I have made some money in growth ( usually hold out for 20-40%). With my losing stocks, I generally sell at 10% loss so as not to get further loss.

What are others' strategies with choosing/buying/selling stocks?

Hi Kansaifolk,

That sounds like interesting way to select stocks. I think it is not necessarily a bad strategy to pick companies. It might be an idea to spend some time building one or more shadow portfolios with stocks and exchange-traded funds you are possibly interested in.

I think mimicking the top holdings of major ETFs isn't a bad idea in and of itself.

The main issue I see is that you're almost certainly going to pay more in transaction costs making individual purchases of stocks - when you could just buy the ETF

DragonAsh wrote: ↑Fri Nov 17, 2017 8:32 amThe main issue I see is that you're almost certainly going to pay more in transaction costs making individual purchases of stocks - when you could just buy the ETF

If you keep it within your NISA limit, you can get free transactions (at least with SBI and Rakuten), and unlike the ETF pay no annual charge. No comment on whether it's an effective stragety though.