Investing in Mother’s Care Leads to 17 Million Yen Loss in Stocks Reveals Unexpected Background

The yen’s prolonged depreciation seems likely to continue, but with stock prices rising, new NISA and other equity investments have started gaining attention. However, there is an increasing risk for amateurs unfamiliar with economics to suffer losses by dabbling in stocks.

Mr. Yasuhara, a department manager (alias, 50 years old) at an IT company headquartered in Minato-ku, Tokyo, has been involved in stocks since elementary and middle school under his mother’s guidance, so he is not entirely inexperienced in economics. About ten years ago, he participated in networking events with financial professionals and also studied stocks. Although he temporarily paused, he resumed stock trading last year. His goal was to build funds for early retirement from the company and to pursue independent ventures.

However, Mr. Yasuhara ended up suffering a significant loss in stocks. At one point, due to a loss of 17 million yen, his savings were depleted, and he even had to divert funds meant for his mother’s caregiving, plunging into a dire situation.

Not only did he have to reconsider his plans for independent business ventures, but he also found himself in a position where he needed to recover the caregiving funds he had used for supplementation.

Investigating the reasons behind why Mr. Yasuhara incurred such substantial losses in stocks revealed something surprising.

 

An Impressive ‘Stocks Youth’.

Mr. Yasuhara received guidance on stocks from his mother when he was in sixth grade. He was handed “Kaisha Shikiho” (Company Guide) and forced to select ten stocks priced at 1000 yen or less, resulting in approximately 200,000 yen in profit (the following statements are from Mr. Yasuhara).

“In middle school, I made money with steel stocks I bought, learned the appeal of stock investments, and experienced the excitement when 1000 yen stocks soared tenfold during the bubble economy boom in sales. At that time, I was an impressive ‘Stocks Youth’, and after school, I listened to stock live broadcasts on Radio Nikkei (current name). Around 3:00 p.m., the MC would express human drama with haiku about the joys and sorrows of stocks, and I felt like experiencing a human drama. In the evening, I watched ‘Stock News’ on TV Tokyo.”

However, when the bubble burst, the stocks bought for 1,000 yen or more dropped to less than half.

“During that time, I might have been engrossed in other things like horse racing or games.”

After becoming a working adult, his interest in stocks rekindled. He first opened an account with Nomura Securities and purchased stable investments such as Hachijuni Bank.

“Around ’05, influenced by the IT bubble, I began networking with external experts and others. I aimed to expand my connections and learn by attending networking events where day traders and others participated.”

However, around that time, his work became busier, leading to more days of overtime. As a result, he gradually drifted away from networking events with stock-related individuals, and his connections dried up.

He resumed stock investments again in April ’23. The catalyst was inheriting assets due to his father’s passing from a stroke.

“When my father passed away, I received 15 million yen from the inheritance, and additionally, I was entrusted with 17 million yen for my mother’s caregiving expenses. It was because my mother was showing signs of mild dementia.”

Approaching the age of 50 and aiming to start a business in his passion for horse racing, Mr. Yasuhara used the funds inherited from his father’s estate as initial capital to reignite his enthusiasm for stock investments.

“At first, I utilized a wrap fund, which combines asset management advice with stock trading orders in one service package. I invested 5 million yen in the wrap fund and purchased stocks from Yucho Bank and Daiwa Securities. I wanted to increase it to around 8 to 10 million yen. Besides that, I started investing in stocks on my own.”

 

“I regret it.”

Since April ’23, Mr. Yasuhara’s stock investments swiftly shifted from heaven to hell, with rapid fluctuations in stock prices.

“I purchased Remix Point shares in ’23. One of the reasons was during my previous job in the talent introduction business, where I visited Remix Point in ’07 to hear about their recruitment needs. It left a glamorous impression for an energy company. Feeling their momentum, I bought 100,000 shares on margin trading at 240 to 270 yen. When Remix Point’s stock rose 10%, I planned to sell.

However, after the CEO change in May ’23, the stock fell to 220 yen. I aimed to sell at 240 yen, but it continued downward, dropping below 200 yen and reaching 162 yen. Since it was margin trading, I had to settle within six months.”

Margin trading involves depositing cash or stocks as collateral with a brokerage firm, borrowing money to purchase stocks, or borrowing stocks to sell them. It can be advantageous for buying stocks with less capital, but it also exposes one to fluctuations in stock prices.

“There were two occasions when Remix Point reached 240 yen, and I sold them at those times. However, I still owned around 200,000 shares and incurred a loss of 40 million yen. I regret it.”

Mr. Yasuhara attributes the cause to trusting a YouTuber.

“There was also a YouTuber who touted stocks with high topicality,”

Further driving Mr. Yasuhara into a corner was Disco’s stock.

“As of the end of March ’24, I had 34 million yen, but it plummeted to 17 million yen, resulting in a loss of 17 million yen. I initially bought it for 56,000 yen. I expected it to rise to 57,000 yen, but it suddenly dropped to 47,000 yen. I invested a total of 20 million yen from my mother’s caregiving funds and my own savings into stock investments, so this was really bad. It was hell every day. I had to sell other stocks to make up for the losses. I was in a panic.”

Mr. Yasuhara tried everything from purchasing stocks like Dentsu and Kobayashi Pharmaceutical, selling for profit, and cutting losses on Remix Point. However, he also incurred a loss of 2.7 million yen on Kobayashi Pharmaceutical.

“It’s far from starting my own business. In the end, I had no choice but to stay with the company.”

Sighing deeply as he tasted rock bottom, Mr. Yasuhara found a stroke of luck after Golden Week. Disco’s stocks made a V-shaped recovery. The stock price rose back up to 56,000 yen, allowing him to substantially recover from the 17 million yen loss. By the end of May, his total losses amounted to 5 million yen. Ironically, he had planned for a startup capital of 5 million yen, realizing the harsh reality that “starting a business is difficult.

 

“Taking information at face value.”

Mr. Yasuhara experienced ups and downs through stock investments that plunged him into hell, causing him to lose his startup capital and miss a turning point in life. What were the problems with stock investments that led to this?

“My mother taught me that stocks would rise if held long enough, but I learned that wasn’t always true when I tried it myself. Also, not knowing how to rely on professionals, I ended up trusting YouTuber information.”

He mentioned falling for a convincing pitch by a YouTuber who claimed Disco’s stock would rise. Mr. Yasuhara trusted figures like “R,” with over 150,000 subscribers. Investing involves risks, including the risk of trusting YouTubers.

“It might be summed up in the phrase ‘there may not have been a trustworthy professional.’ I want to leave it to a professional, but I don’t know who or what to ask. So far, I’ve received proposals from securities firms, banks, and post offices, but in the end, it’s all up to my own judgment.

Funds wrap invest professionally to increase profits, but for other methods, they only recommend buying government bonds or making profits based on past trends, so in the end, it’s all self-judgment. In foreign countries, it seems natural to entrust investors, but in Japan, although there are advisers and information providers, investment decisions are left to oneself. If that’s the case, there’s no choice but to do it yourself.”

Investment in Japan remains strictly self-responsible. In such a tough stance, many people may repeat losses without meeting a reliable professional. However, despite being a large investment, relying solely on YouTuber information can double the risk. Mr. Yasuhara’s experience clearly illustrates this. In the era where selecting trustworthy people and information on SNS requires verifying or thoroughly assessing whether they can be trusted, it is essential.