I am an economist and investor who is dedicating most of his time on trying to understand Japan and himself. Concerning Japan, I am mostly focusing on cultural peculiarities and individual companies, but also on macroeconomic aspects, which in Japan not seldom are highly conflicting. Apart from scrutinizing Japan I am working hard on my ignorancerecognitioncompetence, and other aspects of behavioral traits that makes following a value strategy so difficult.
My investment process is based on the value-investing framework outlined by the great work of Graham and Dodd. Thus, I certainly live in Graham&Doddsville. But every now and than I do travel to nearby villages to see what their farmer market has to offer. Hence, I do not invest only in Japanese net- net stocks. I also look into qualitative aspects of an investment and I am willing to pay up for better quality businesses. But when I do I always try to remind myself of my ignorance and stupidity and to be aware of my limited knowledge. Thus, I am extremely stingy and price conscious when it comes to stock market investing and tread warily in the field of moat investing.
Furthermore, I am following the philosophy, strategy, and process of focus investing. My portfolio is concentrated around 15 names, as I am convinced that really good investments are hard to come by and rare. A nice side effect of portfolio concentration is that it allows me not to dilute my managing resources. Conversation of managing resource and being aware of my limited knowledge is the main reason for an extremely low turnover rate of my portfolio. The turnover rate per year stands around 10%.
I am aware that my focused approach to investing can lead to increased short- term volatility and it has a high probability of short- term underperformance. But I am convinced, and somehow confident, that the philosophy, strategy and the process outlined is reasonable and will eventually lead to over- performance on the long- run