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1/11 I am a global investor and over the last 11 years, I have covered a rotation of Japanese stocks (2-3 holdings on average). There is some encouraging progress evident after running an interesting stock screen: quality metrics in Japan filtered by CEO age <50
2/ The bar is rising amongst the innovative companies in Japan with an East-meets-West bent. One example is Freee $4478.JP . Co-Founder CEO is a former Googler building a position that global peers admire from afar @DennisHong17 @goodinvestingc
3/ CEO of Money Forward (Yosuke Tsuji) is a Wharton MBA grad ($3994, $3994.JP). Note the investment discipline in the following chart, along with the noteworthy accomplishment of negative MRR churn due to up-selling/cross-selling @Yosuke0630
4/ Innovators are not simply copying Silicon Valley. They are incorporating those practices that fit best with Japanese employees and Japanese customers. See excerpt from “The Quiet Comeback” by @CaseyDai2Asa9sa. Founder & former CEO of ChatWork $4448 explains:
5/ Value investors, haircutting the cash&holdings not always necessary. BEENOS ($3328) most important holding is Indonesian crown-jewel marketplace Tokopedia (exit soon?). United Inc ($2497) monetized their stake of crown-jewel Mercari ($4385) and used some proceeds on buybacks
6/ With each quarter that rolls by, there are new and helpful charts. This raises the bar for all (continuing to raise the bar is the primary reason for this thread). For example, churn charts are now commonplace on TSE Mothers:
7/ Global investors would no doubt appreciate seeing more disclosure like this. If you show us that you are investing at high returns like Kaonavi does $4435, you will get more support from shareholders that truly like value creation. @kaonavi_jp
8/ Global investors would also appreciate seeing more cohort disclosure. Medley ($4480) sets an example here. This helps us see what happens with the customers after you acquire them.
9/ Value investors, take note of the M&A accountability shown in this chart from ZIGExN ($3679). This chart not only stands out in Japan, but is in the top decile globally. M&A at 2.8x EBITDA? Yes, please @joe_magic
10/ Many companies in Japan remain opaque to global investors, but I’m encouraged by the progress of Japan's next generation of business leaders. Please retweet to reward these leaders and continue the process of raising the bar
11/ Flywheel is building a way for FinTwit to truly collaborate on quality investment research for FREE. Join our Forum discussion on this topic (and individual stocks in Japan and globally) by applying for membership at: http://flywheelfunds.com/membership-application
$6035 $6035.JP @jptechcrunch @Takuya_CLM @GearoidReidy @DisruptingJapan @TheEIU_Asia @rumireports @WillThrower3 @timoth3y @SuperMugatu @modestproposal1
