Characteristics of the Japanese Market:
- Average Price-to-Book ratio. Valuations in Japan looks undemanding ...
Having explained the mindset one should adopt when entering the Japanese market in Part 1, I would be sharing the characteristics of the Japanese market in this post.
One thing I have learnt, when entering a new market, would be definitely to do your ground work. While one investing strategy may work in one country, it does not mean it would work for every. Broadly speaking, it is still the same process of finding stocks having cheap earnings multiples, low price-to-book ratios, quality management, solid & stable business. However, certain tweaks are needed for each market. Even with other forms of investing, say algorithmic trading, the algorithms used have to change in a different market. Whilst this list is by no means exhaustive, I will be sharing some of the key traits that I have identified.
