[TOKYO (Archyde.com)]- Daiwa Securities Group Inc. President Seiji Nakata said in an interview with Archyde.com that investors are shifting their focus from “growth” to “value” once morest the backdrop of rising interest rates worldwide. He expressed the view that the Japanese market, which is positioned, has an advantage. The inflow of funds from overseas investors is actually increasing, and President Nakata said that November’s purchase of Japanese trading company stocks by Warren Buffett, a prominent US investor, was a “change in the tide.”
Growth stocks with high growth expectations tend to be sold during rising interest rates. President Nakata said, “While investors’ eyes are shifting from growth to value, the market with the greatest value is Japan. Japan has a relative advantage as an investment destination.”
According to the November trading trends by investment sector announced by the Tokyo Stock Exchange, overseas investors net bought 1.2873 trillion yen. It was the first time in two years since November 2020.
President Nakata cited the solid performance of Japanese companies, the growth rate in Japan, the sense of cheapness when viewed on a dollar basis due to the depreciation of the yen, and the shift of funds from China as backgrounds for the expected purchases by overseas investors. Among the IMF (International Monetary Fund)’s growth rate forecasts for 2023, Japan’s economic growth rate forecast is the highest among the seven major countries (G7).
President Nakata pointed out that Berkshire Hathaway, led by Buffett, increased its shareholding ratio of major trading companies in November as “one change in the tide”, and there is a high possibility that overseas investors will buy Japanese stocks. showed the outlook.
In Japan, there are many undervalued stocks with a price-to-book ratio (PBR) of less than 1. President Nakata said, “I feel ashamed regarding that.” He said, “If the investment perspective changes, people will buy it.”
In addition, President Nakata said, “As a shareholder, we should point out matters that should be pointed out.” It is said that it encourages companies to sell their cross-held shares, review their business portfolios, and increase the diversity of their boards of directors. .
*The interview was conducted on the 15th.
