Bridging the valuation gap in Japan

Exciting opportunities

Japan is an interesting illustration of what can be achieved through stockpicking, even in a lacklustre market environment.

Over the past 25 years, the Japanese stock market has returned just 3% per annum and its weight in the MSCI World index has shrunk to just 6%. For stockpickers with a valuation-orientated approach, Japan has been a rewarding place to invest, as value stocks have generally outperformed their growth peers by much more than they have elsewhere. Deep Dive: Investors must learn to look beyond governance to assess Japanese ESG Even better, Japan has often been the best of both worlds, with the opportunity to buy decent businesses at great prices and great businesses at decent prices. ...