Trip to Kyoto & Osaka

7 October 2017

Dear Fellow Investors

We just returned from Kyoto and Osaka where we enjoyed a fabulous and eye opening  holiday.

Our Kyoto hotel  was a smart hotel. The only employee was the cleaning lady. We self checked in and entered our room with a password  sent to us by email.

The tiny 400 square foot room was fully equipped with a mini kitchen, washing machine, mini TV, and a micro wave oven.  

The room and hotel were super clean and quiet.  

The smart hotel is an example of Japanese technology  Japan  is a world leader in artificial intelligence, robotics  and smart technology and I found a well established company to leverage on these trends. More on that later.

Traveling  in Japan is super efficient. The underground and bus services go to all tourist sites and have signage in both Japanese and  English.

Information counters with English speaking staff at most stations are very helpful and knowledgeable.

We planned our holiday using the Lonely Planet Guide. We highlighted the prominent venues and were able to visit them by taking advantage of the public transport system. This saved us thousands of Yen in expensive tours and taxis. We also had the flexibility of moving at our own pace.

The food was delicious and super clean.

A restaurant specializing in tuna.  

The company we visited was Nidec Corp, who have an 80 % world market share in micro motors. The micro motor in your Apple/ Samsung hand phone was made by Nidec.

Founded by 3 men in a garage in 1947 they have become a multinational corporation with a global presence.

I asked them how they performed in the 1999- 2000 technology crash and 2008 bust  where quality shares such as  Yahoo, Microsoft, Intel and Cisco dropped as much as 80 %. Mr Nagayasu, showed me a Nidec price chart in which they dropped less than 5 % and resumed their steady uptrend.   

The chart reminds me of Nestle Malaysia, a share that steadily progresses upward no matter, how bad is the news.

Mr Masahiro Nagayasu General Manger of Investor Relations and myself at the company headquarters in Kyoto.

This is not a trading share but could be a long term buy and hold for your managed accounts . It is a component of the Phillip Japan Fund.

If you are interested to take up this share, I am happy to explain in more detail and answer your questions.

Singapore is bottoming out as the real estate markets are beginning  to recover.

The KLSE remains in a holding pattern while Hong Kong continues to make new highs. 

There is an old saying in markets :
“ Never sell a quiet market “  This is the KLSE now.  If you hold quality shares, be patient – collect your dividends  and wait for your reward.

Invest well and grow your wealth

Bill

Elephants at the Kyoto Zoo waiting for a treat.