After restructuring at the age of 50, he became a “200 millionaire”… What a Legendary Investor Wants to Tell People Starting to Invest

Sudden restructuring

In 2011, Mr. Higashiyama began investing again, focusing on index funds that were being introduced by major securities companies at the time. After reading numerous investment books, including the classic “Random Walker on Wall Street,” and attending numerous study groups of individual investors, his investment style was solidified. He invested 3 to 4 million yen per year, and his assets increased at a pace of approximately 10 million yen per year.

Part 1: From “ordinary company employee” to ¥200 million in total assets… Investor whose new book is the talk of the town reveals his “past of losing heavily in FX.

His asset building was on track, but an unexpected situation arose on the work front.’ In the fall of 2007, he received a restructuring order from the company where he had worked for nearly 30 years.

I remember hearing the words of a company executive: “Mr. Higashiyama, the company doesn’t need you. My assets had accumulated to 70 million yen at the time, so I did not feel that I would be out on the street, but it was a great psychological shock. It is true that I was not an outstanding employee and was not on the road to success. However, I was entrusted with work in the position of deputy general manager, and I had a track record of accomplishment, including co-authoring a book in my field of expertise. Above all, I was proud of my many years of service to the company, so I knew I would not be cut.

Since the restructuring was only a recommendation, he had the option of rejecting it and holding on to his position at the company.

However, it was easy to imagine that by doing so, he would be treated like a tumor by those around him. Higashiyama accepted the restructuring and resigned in February 2008. He was on the verge of finding a new job, but unfortunately, a new type of coronavirus struck Japan at that time. He was left with no job offer. After interviewing with more than 50 companies, he finally found a new job in October of the same year, but his annual income was reduced to about one-third of what it had been before. On the other hand, his asset accumulation jumped dramatically.

He said, “I was able to invest at the bottom of the Corona Shock by putting in the extra money I received when I retired early. The stocks and mutual funds that I had invested in during that period doubled and tripled in size during the subsequent upturn in the market. I also bought one bit of bitcoin for about 2.5 million yen at the time and sold it for 6 million yen.

For my daughter who wants to become a NEET

In his book, “29 Truths I, a Company Employee Who Earned 200 Million from Investing, Want to Tell My 15-Year-Old Daughter” (JTB Publishing), Higashiyama discloses not only the details of his life, but also all the stocks he owns. While there are many investment books out there that tell the author’s success story, this book is unique in that it focuses mainly on his message to his daughter. We asked him how he came up with the idea of writing this book.

When my daughter, who is now 15 years old, was in the sixth grade, she wrote an essay on the theme of “Dreams for the Future” and said, “I want to become a NEET. She thought so when she saw me making a profit from asset management while I was unemployed at the time. I was able to invest because I worked day and night as a corporate employee and continued to live frugally, but even if I explained it to her, it didn’t resonate with her. So I decided to write a book about how I have been living left and right, and what I have learned in order to make money through investing.

I wrote this book with an eye to carefully explaining the basics of inflation, currency exchange, and the strong yen in a way that even a 15-year-old girl could understand. Perhaps that was a good thing, because I have received feedback that the book is “easy to understand even for beginners. I don’t know how much of the book my daughter read, but she seemed to remember the “neat” comment and said, “I’m sorry about that. Now she wants to become a vocalo-pop artist, and she is on the computer every day. I hope she finds something she likes and works hard at it.

The stock market is currently in a downtrend due to the “Trump shock. The S&P 500, an index of 500 major U.S. companies, has fallen more than 10% from its record high in mid-February, and there is widespread anxiety among some investors, including those who are cutting their losses in the “New NISA. Is it appropriate for beginners to start investing at a time like this?

I personally recommend that those who are just starting out invest in a long-term, single-family investment in an internationally diversified index fund such as eMAXIS Slim All-Country All-World Equity. In that case, I think the current decline is rather lucky. When you are just starting out with a series of investments, you can buy more when stock prices fall, and you will benefit more when prices rise.

Also, even though U.S. stocks have fallen, it is only about 10% from their highs. This level of decline has occurred nine times since the beginning of the 21st century, or about once every two and a half years, so it is inevitable when investing for the long term. In addition, even the current price of stocks has risen nearly 10% compared to one year ago. Even if the stock price declines in the near term, growth can be expected in the medium to long term. I don’t think there is anything to be anxious about.

We are moving into an era in which asset management is essential for both oneself and one’s family.