Rebirth Tokyo 1986

Chapter 418 Interesting Ideas

Masato Takeshita didn't know how many people his speech could awaken, but even just one person would make him happy.

He will most likely save at least one family.

I've been talking too much, and my mouth is a little dry.

The young man picked up a bottle of purified water from Xinghai Beverages on the table and drank half of it in one gulp.

"OK, now let's continue with the recruitment."

"I have said at many universities that the future world is the information age."

"If you don't know how to use a computer, you might be considered illiterate."

He paused slightly at this point, then asked the crowd loudly.

"Do you want to be the illiterate of the new era?"

"In no mood!"

Hearing everyone's unanimous response, Takeshita Masato nodded in satisfaction.

"Very well, if you don't want to, then learn more about computer technology."

"If you have time, you can ask the big companies if computer ownership is increasing?"

"You can also take a closer look at the various stores near your home. Are they increasingly using computers for checkout?"

Takeshita Masato's question surprised many students.

Those among them with exceptional memories quickly discovered that everything was as Masato Takeshita had said.

With computers becoming increasingly common, it's possible that in the future, not knowing how to use a computer will truly be considered illiterate.

"Sawano, shall we go to the internet cafe early on Saturday?"

"Sure, this is a good opportunity to get familiar with computers."

Influenced by those with exceptional memories, almost all students realized the importance of computers.

But this thing is expensive, and internet fees are even more expensive.

Students with limited funds often choose to study at internet cafes. While the environment is indeed poor, it's the best option compared to other places.

When Masato Takeshita saw that everyone was talking about this kind of topic, he smiled and paused for a few minutes.

After everyone had finished their discussion, he continued.

"I don't expect everyone to learn how to code, that's unrealistic. But at least you should learn how to use various office software and create attractive PowerPoint presentations."

Office software is software that is best used proficiently by all positions, as it can enhance a person's value in the company.

PPT, in particular, is a powerful tool for communicating with superiors and subordinates.

If made well, this thing can please the boss and make it easier to persuade people to accept it.

In short, if you learn how to create exquisite and beautiful PPTs, you'll be able to go anywhere in the world without fear.

After a long, drawn-out discussion about employment, Masato Takeshita devoted more time to his students.

"Now, it's time for questions. Everyone, please raise your hands so I can see who wants to ask a question."

With most people raising their hands, Masato Takeshita randomly picked a boy he found pleasing to the eye.

"Hey, you in the white suit, that's the one. What do you want to ask?"

The young man in the white suit stood up in surprise and then asked respectfully.

"Mr. Takeshita, what are your views on the Japanese market?"

As expected, the issue that everyone is most concerned about is still the economy.

Takeshita Masato shook his head inwardly, but his expression remained unchanged as he quickly gave his own answer.

"Japan is a great market because bank loan interest rates are only 1%. If you find companies in the stock market with annual profits exceeding 1%, you'll see returns. If you find companies with annual interest rates exceeding 5%, you'll see good returns."

"And there are still many such companies in Japan."

The overall return on the Japanese stock market is very low, with many stocks yielding only around 4% to 5%.

But none of that matters, because Japanese banks offer lower loan interest rates, and they're practically lending money for free.

"If you don't exchange your yen for foreign currencies like the US dollar, then it's a very good option."

"If you're ready to exchange it at any time, then it's just average."

"The current exchange rate between the yen and the dollar is not normal; it's too high."

If you earn money domestically and spend it domestically, then the low interest rates offered by the Bank of Japan are practically angels.

If money is earned domestically and spent abroad, then Japanese banks are not very good.

Because the current extremely high exchange rate of the Japanese yen is unsustainable, it will soon return to a normal ratio of over 100:1.

"And if you really don't know how to choose, then choose the most stable company. For example, Toyota Motor Corporation, or NTT Communications."

Toyota and NTT are among the most stable companies in Japan; even if other companies go bankrupt, these two will not be greatly affected.

It is perfect for novice stock market investors who prefer stable returns.

After listening to the young man's explanation, the man in the white suit boldly tried to ask a question.

Doesn't that include Xinghai Group?

"Of course, our Xinghai Group is an emerging enterprise and is not as stable as established giants."

Xinghai Group's various subsidiaries are expanding their territories all over the world.

Those sitting at the same table as Xinghai Group were all emerging companies.

After finishing his question, the young man looked at everyone and then casually pointed to a woman.

"Next, the girl on the left wearing the black uniform."

When the girl realized she had been called on, she immediately stood up.

"Um, um, hello Mr. Takeshita."

"Hello, you too. Don't be nervous. Is there anything you want to ask?"

Masato Takeshita's gentle words of comfort eased the girl's condition.

"Yes, that's right. I really like Chinese culture and I hope to work and study in China in the future."

Could you please explain the characteristics of the Chinese market to me?

The young man's attitude immediately became much friendlier when he encountered a Japanese girl who wanted to develop her career in China.

"If you want to develop your career in China, can you accept the current backwardness there?"

"Yes, I know. I go there every summer vacation."

The girl wasn't blindly bold; she had done thorough research.

It was because after visiting China that I found it changed every year that I decided to go to China to develop my career.

"I see, that's great, that's the kind of spirit we need."

Masato Takeshita highly praised the girl's practical attitude, giving her a lot of affirmation before starting to answer the questions she was concerned about.

"In my view, China at this time is like South Korea in the 1960s and 70s, and Japan in the 1950s and 60s."

"Everywhere is full of energy, everywhere is full of opportunities."

"Now many of our companies are attracted by China's dynamism and are investing and developing there."

"If you join a large company and then apply to go to China, you will definitely have a very good future."

After a series of affirmations, the young man tapped the table as a reminder.

"However, you must have a sufficiently clear understanding."

"China has a large population and its population quality is getting better and better. Its market potential far exceeds that of Japan and the United States."

"Such a large market will initially be dominated by large supermarkets due to its backwardness."

"But soon, the market will be flooded with competitors, eventually evolving into the world's most competitive arena."

"If your company always treats the Chinese market like a supermarket, without thinking about investing locally, and just wants to make a quick buck and leave."

"Then unless your patent is indispensable to others, you will soon be eliminated from the market."

The Chinese market was once the most competitive market in the world. If your attitude isn't right, you'll disappear very quickly.

The earliest white goods industry, with companies like Sony refusing to transfer their supply chains to China, has resulted in them only managing to survive in a few sectors.

Some giants, such as Toshiba, have even had to sell their white goods businesses to Chinese companies.

The same applies to the telecommunications market.

Currently, China's telecommunications industry operates under a system of seven different countries and eight different systems, with NEC being one of them.

However, NEC quickly lost the Chinese market as several domestic telecommunications equipment manufacturers, including Giant Interactive, rose to prominence.

The Chinese market is fiercely competitive, but it also offers many advantages.

Those who stand out can achieve great success worldwide.

After all, competition is fierce, and you need to excel in every aspect to survive. Competing in less developed countries is like a game of cat and mouse.

"A grand market, an arena. Thank you for your advice, Mr. Takeshita. I will remember it."

"You're welcome. I admire young people who dare to venture out into the world. Japan is currently lacking this type of talent."

Japan is under immense domestic pressure; one must go abroad to survive.

This applies to both businesses and individuals.

Xinghai Group is no exception, relying mainly on the global market to develop its industries.

Of course, Xinghai Group still prioritizes its domestic market at present, with domestic sales still accounting for about 50%.

However, as time goes on, Japan will become less and less important. Even without considering the Seikan Fund, the proportion of overseas investments is expected to be over 70%.

Since both China and Japan have it, the United States, Japan's most important overseas market, is naturally no exception.

Is investing in the US stock market worthwhile?

"It's definitely worth it; US stocks are the most worthwhile asset to invest in in the world."

The US stock market is very mature, and even simply investing in stock indices yields returns far exceeding bank interest rates.

If you can pick the right stocks, you can make a fortune.

After drawing his conclusion, Masato Takeshita began to explain why it was worthwhile.

“Companies in the US stock market are very different from those in Japan, namely, their returns are particularly high.”

"Many listed companies have an annual return of over 10%."

"When a company has high profitability, the returns for its shareholders also increase, so people are naturally more willing to invest in stocks, making the stock market even more popular."

The exceptionally high returns of American companies are the driving force behind the booming development of the US stock market.

This enthusiastic investment climate will only disappear when US corporate profits decline.

Of course, there will be some setbacks, but overall it will not have a major impact.

After all, the evaporation of assets in the US stock market is merely the US stock market cooperating with the global harvesting of the dollar tide.

In addition, confidence is also a key factor.

Stock trading is all about building confidence. Once a collective consciousness is formed, even good assets can be ruined by investors.

A typical example is NetEase, whose stock market value was far lower than the company's actual assets for a period of time.

Renowned investor Duan Yongping saw this opportunity, decisively bought heavily, and subsequently made hundreds of millions of dollars.

Even bad companies can maintain high prices in the long term by relying on collective beliefs.

Japan during the bubble economy era is a prime example.

A large number of companies with only a few percent return and growth rate can have a market value of more than 50 times.

Generally speaking, the basic requirement for stock market investment is to double your money in 10 to 15 years.

Therefore, many companies with stable operations, such as banks, do not have high valuations.

Even if investors are betting on high returns, they should still choose companies with an annual growth rate of over 15%.

Companies like those in Japan during its bubble economy, which had sluggish growth and profits, still had such high market capitalizations, naturally needing the support of confidence.

Of course, investors' confidence is not inexhaustible.

Bilibili, which is also known for not making money, was highly anticipated in the first few years after its IPO.

Nobody cares about losses, as long as they see growth.

After waiting for a long time, there was still no improvement, and the market value eventually plummeted.

The prediction that a market capitalization of hundreds of billions of dollars would not be a dream has become a joke.

Companies that are stuck in development bottlenecks and can't make money can still have a market value of over 10 billion yuan, all thanks to their excellent marketing capabilities.

In contrast to the United States, the Japanese stock market at this time was a product of a loss of confidence.

When will investors receive a much-needed boost like the US did, and only then will their confidence return?

It's worth noting that the US stock market was also a mess in the 1970s and 80s.

Ultimately, by losing its biggest enemy and playing a leading role in the information age, it successfully staged a continuous bull market.

Of course, there is also a more ruthless way to restore investor confidence.

Wait!
Once this generation of investors who experienced the bursting of the bubble leaves the market, new investors will enter.

After all, people won't have a deep memory without experiencing it firsthand.

Those who clamor for a large country and a small people, and who yearn for the life of a small country, are typical examples of people whose minds have been clouded by the peaceful status quo in major parts of the world.

After listening to Masato Takeshita's explanation, he asked again.

Is this why Xinghai Fund only invests in the US stock market?

"No, Xinghai Investment never invests in a single market."

Takeshita Masato shook his head repeatedly, and then began to give him more specific examples.

"We have invested in a large number of companies in the Japanese stock market, including Sony, Toshiba, and NEC."

"We have invested in a large number of Chinese-owned companies in the Hong Kong stock market, including New World Development, Cheung Kong Holdings, and Hutchison Whampoa."

"We have invested in giants such as Nokia, Philips, and Siemens in the European stock market."

……

"It can be said that we have a global investment strategy."

Twenty years from now, companies like Toshiba and Philips will decline. But for now, they are still at their peak.

If you enter Xinghai Fund now and exit in time, you can make a lot of money.

Next, Masato Takeshita answered a series of questions about investment and economic development.

It wasn't until the speech was almost over that I finally encountered someone from the internet field.

"With the internet becoming increasingly developed, I wonder if we could create a website specifically for listening to music?"

"Of course, that's a great idea. It would be even better if you could resolve the song copyright issues."

Listening to music is a basic human need, but the music market is currently monopolized by record giants. And these record giants hate the internet and don't like anyone putting their songs online.

The founder of Uber, an internet ride-hailing company, stumbled in this area.

He created a music sharing website, then was sued by a record company and ordered to pay tens of millions of dollars in damages.

Fortunately, he's a genius, and he made a comeback through continuous entrepreneurship. If it were an ordinary person, they would have been crushed by this enormous debt long ago.

"Copyright?"

"Yes, copyright is a hurdle."

Takeshita Masato nodded, and then kindly offered his advice.

"If you really want to start a business with a music website, I think you'd better go to the United States. The music industry in China is very conservative, and you simply won't have a chance."

"It's different in the US. When you don't have money, you can do it secretly, and then pay the bill once you get investment."

Emerging companies don't have much money, so they can only start by piracy in their early stages.

While it's unethical to get on the train first and buy a ticket later, internet companies have no other choice.

(End of this chapter)