Becoming a Millionaire at the Age of 33! Successful People Talk About How to Achieve 100 Million Yen in Assets.

The secret of “Event Investing” that has been riding the Abenomics market

It is important to make trial and error in investing, so I think it is good to start with low-cost Japanese individual stocks. Also, if you want to start now, I recommend that you actively “Poikatsu” or “Points Accumulation” and invest your points instead of using them for shopping. Since the points are actually free, you can easily keep your cool and practice investing without losing your cash.

This is the advice of Mr. Matsu-no-Suke, 38, author of the book, “The Lifelong Billion-Dollar Investment Method I Practice After Reaching 100 Million Yen at the Age of 33” (KADOKAWA).

Matsunosuke started investing in 1993, just after the dissolution of the postal service by the Koizumi administration, when the Nikkei Stock Average was climbing rapidly. Inspired by the people around him, he bought individual Japanese stocks and continued to invest steadily, but after the collapse of Lehman Brothers, he kept winning and losing.

But after the Lehman shock, he started to win and lose. Event investing is a method of investing in specific events based on past trends. For example, if there is an election for the House of Representatives, buying when the election is dissolved and selling the day before the election has a high probability of making a profit, and buying at the end of the year and selling at the beginning of the year has a high probability of winning.

Also, when I bought a certain stock, I analyzed whether I would have made money now if I had bought a similar stock in a similar situation five or ten years ago. As a result, by the end of 2000, I had accumulated about 20 million yen in assets.

That’s when the Abenomics market arrived. After 2001, my assets increased at an accelerated rate, plus 20-30 million yen every year.’ I bought some foreign stocks, such as NVIDIA in 2003, but I achieved 100 million yen in 2004 almost exclusively through Japanese individual stocks.

Mr. Matsunosuke has invested in only individual Japanese stocks and reached 100 million yen in assets in 11 years. It took a lot of trial and error before he established his theory of event investing.

Some people are surprised to hear that you can become a millionaire just by investing in individual Japanese stocks, but I think it’s because I invested in individual stocks that I was able to reach this goal in 11 years with very little capital. However, the world of individual stocks is like a battlefield, and there was a long period of time when I was only able to earn about pocket money. In the end, the only way to improve one’s sense of investment is to gain experience through trial and error. In my case, I was able to successfully take advantage of the Abenomics market, but I think it was important that I was able to build my own investment style and create a large amount of capital before that.

On the other hand, if you want to start investing in stocks now, it is worthwhile to try not only Japanese stocks but also U.S. stocks.

On the other hand, if you were to start investing now, it would be worthwhile to try U.S. stocks as well as Japanese stocks. I think we are now in the final stages of the bubble, and although we are temporarily in a difficult situation, I believe the boom will continue for another year or two. I think that after this bubble bursts, there will be a decade or more of hard times for US stocks, so I want to get in while I can. Perhaps there will be another bubble in another market, and I want to be ready for that.”

Rakuten points can also be used to invest in stocks and investment trusts. As a new form of “poikatsu,” I want to take on this challenge aggressively.

Investing only in Japanese stocks, targeting “explosive growth stocks

One thing that all “billionaires” have in common is that through trial and error, they have found investment targets that will grow exponentially. Hiroshi Endo, 34, the leader of the investment community “ixi”, has built up a fortune of over 100 million yen by concentrating his money on individual Japanese stocks that are growing five to ten times.

Mr. Endo started investing in 2007 when he was 20 years old, riding on the FX boom and investing 300,000 yen he had saved from his part-time job.

I didn’t have any investment knowledge at the time, so I ran out of money after two weeks. From there, I switched to investing in stocks, where I didn’t have to constantly watch the price movements, and although there were times when I suffered from trial and error, by the time I graduated from university, my funds had grown to about 3 million yen.

After I became a company employee and started investing in earnest, the stock of Mixi was the one that gave me a big profit. At that time, I was profiting from shares of GungHo Online Entertainment, famous for the smartphone game “Puzzle & Dragons. On the other hand, Mixi’s social networking service was being replaced by Facebook and Twitter at the time, and its stock price had hit rock bottom.

But then, the smartphone game “Monster Strike” became a big hit. I bought shares of Mixi when “Monstro” started to gain popularity, and thanks to my experience with GungHo, I was able to lock in profits at almost the highest price.

GungHo is a legendary stock whose share price rose more than 70-fold in one year after “Pazudora” became an unprecedented hit. Mr. Endo saw that Mixi, which was becoming a legacy company, was a “post-GungHo” company and was able to make a profit of about 30 million yen in three years. Endo’s theory is simple: buy stocks that are likely to triple in price and invest in them intensively.

At the end of 2001, he bought “Ikinari! At the end of 2001, I made a large profit on Pepper Food Service, which operates “Iki Nari! Steak. At the time, there were no restaurants specializing in steak that one could go to alone, so I instantly knew it would be popular. I sometimes gather information on Twitter to see what is being talked about. Investing in Tokyo Theatres is one example. This company is the distributor of the hit anime film “In This Corner of the World,” and I saw a tweet saying that the company’s own Theatres Shinjuku had recorded the highest weekly box office revenue in the past 10 years. I immediately bought shares of Tokyo Theatres, and within three or four days, the stock price jumped 1.5 times.

As he continued this targeted investment, Mr. Endo found a “ten-bagger” (a stock that grows tenfold) stock.

I bought and sold Kitanotatsujin Corporation, which sells cosmetics and health foods online, several times. My total investment was about 10 million yen, but I was able to make a profit of over 100 million yen. I used the same method as when I bought shares of Mixi, and based on the data of Media Hearts (now Fabius), which had a similar business model to Kita no Tatsujin and was growing rapidly, I predicted its sales, profits, and market capitalization, and determined that the stock price could more than triple.

Mr. Endo mainly invests in small-cap stocks that may break out in the future, rather than mega-corporations such as Toyota and Nintendo. Even if you can’t do technical analysis, you can win by thoroughly researching information on companies that interest you in your daily life.

I gather information by looking at what is popular, what restaurants have long lines, what the management of the company thinks, what they have said in the past, and by reading interviews. Anyway, I think it is important to know deeply.

If you buy a growth stock that has substance, do not be upset if the price falls. No matter how high the price of a stock rises, the price may fall in the process of rising. It is better not to buy and sell emotionally, especially when the stock market is uncertain, as it is now. It is better to wait until it is clear that the price has reversed from the bottom.

One example of a good target after a reversal is the medical field, especially preventive medicine. I believe that the medical business for the elderly and the operation of platforms for medical professionals will continue to grow significantly. In terms of individual stocks, I am focusing on CellSource, a biotech venture company involved in regenerative medicine, Medley, a mainstay recruiting company for the healthcare field, and VISC, a mainstay consulting business that connects advisors with business knowledge and clients.

Turning to U.S. stock investments due to the strong yen: The world you see when you become a billionaire

Tapazo, a U.S. stock blogger who has spent 17 years becoming a millionaire, invested all of his starting salary of 200,000 yen in Japanese stocks after changing jobs in 2000.

He said, “I always thought that assets should be increased by investing, but at first I did everything on my own. I bought mainly financial stocks, which were undervalued due to the financial crisis, and building and construction stocks, which had been neglected as structurally depressed industries. After that, I bought all the stocks I could when Mizuho Financial Group increased its capital by 1 trillion yen in 2003, and when the market bottomed out in 2005, I reached the 10 million yen mark. It’s normal for asset building to expand when you reach the 100 million yen mark, but it wasn’t that easy at the time.

Looking “Beyond 100 Million Yen

A major turning point in Mr. Tapazo’s investment came in 2008, when the financial markets were rocked by the double whammy of the Lehman Shock and the strong yen.

The exchange rate, which had been around 110 yen to the dollar, suddenly dropped to 80 yen, and I sold all my Japanese stocks at once and plunged about 10 million yen into U.S. stocks. Based on my experience of making a profit at Mizuho, I thought that financial stocks would be good during a recession, so I concentrated my investments in Bank of America and Citigroup. If I were you now, I would probably feel the risk and wouldn’t touch them, but at the time, I was very happy with the results.

Since I started investing in U.S. stocks, I have hardly ever lost money. The sales of U.S. companies grow steadily, and their profit margins are completely different. They have a strong financial base and are very conscious about giving back to their shareholders, so I think it is easier to make a profit than with Japanese stocks.

His investment in U.S. stocks based on so-called value stocks got off to a good start, and his assets grew to 60-70 million yen in 2010. I thought I was going to go through the motions, but when my interest shifted to dividend stocks, my assets didn’t grow as fast as before.

In 2002, my interest shifted to ETFs and high-dividend stocks, which I had never looked at before, and by the following winter, I was earning around 2 million yen in dividends per year. However, when the asset size was tens of millions of yen, the return of millions of yen per year seemed small, so I shifted to trading aiming for gains on sales again, and as a result, I surpassed 100 million yen in ’17.

Now that I’ve surpassed 100 million yen, I want to start diversifying my investments outside of stocks, so I’m working on real estate and solar power, which are relatively easy to increase assets. Normally, the theory is to start with low-risk bonds, but I’m taking on this challenge based on the hypothesis that I will be able to earn money more efficiently after surpassing 100 million yen.

Since he started investing, Tapazo has increased his assets while taking risks, and is currently seeking to build a portfolio of 1 billion yen in total assets.

What kind of strategy would you recommend for beginners? What I can recommend to anyone is to buy a steady stream of index investments that are linked to stock indices, so that you don’t take unnecessary risks, but also so that you can determine what level of risk you can bear.

I switched from real estate investment to virtual currency and hit the jackpot!

While some people have built up their assets through careful investment planning, there are also cases of people who have achieved over 100 million yen in assets through virtual currencies (crypto assets), which have repeatedly risen and fallen in recent years. Yosuke Nakabayashi (pseudonym, in his 40s), a doctor, started investing in 2003, but it didn’t go as planned and he was stuck.

The first thing I tried was investing in studio apartments, but there were many troublesome things to do, such as repairing the facilities and the risk of vacancies, and the investment profit didn’t increase much. I was also addicted to stocks for a while, but I couldn’t make any money despite buying and selling frequently, so I ended up giving up in 2005.

Around that time, he was introduced to a virtual currency ICO (Initial Coin Offering) by someone he met through his real estate investment-related connections.

The next year, I bought and sold Cardano for 500,000 yen. The following year, as soon as Cardano started trading, the price skyrocketed and the valuation exceeded 100 million yen.

In 2005, Bitcoin entered its first bubble period, and virtual currencies were born and listed to follow. The price of Cardano also went through a series of dizzying ups and downs.

The valuation exceeded 200 million yen in 2006, but in the following months, the price dropped to about 16 yen per unit, and by the end of the year, it was less than 5 yen per unit, bringing the total price down to about 10 million yen. I thought I had misjudged the time to sell, but I persevered because the price had exceeded the principal. Then, in the fall of 2008, as Bitcoin rose rapidly, Cardano started to rise again. The highest valuation was over 600 million yen, but now it has fallen to around 120 yen per unit, and the valuation is around 200 million yen. It could be said that I missed the right time to sell, but I will hold on to it until it drops below 100 million yen.

While his real estate and stock investments were not going well, Mr. Nakabayashi had an unexpected encounter with a virtual currency that turned out to be a huge success. Although it has fallen to one-third of its peak, it is still a whole lot of money, considering that it is more than 400 times the original amount.

When it doubles in value, I’m going to cash it in. I don’t think I’ve succeeded in investing I just won the lottery or got lucky. I think the fact that I tried it without thinking it was a lie, even though it sounded like a bogus presale of virtual currency, paid off.

Both steady investment and getting rich are the result of trying. Why don’t you take your first step in investing based on the experiences of successful people?