When it comes to investment magnates, many people might think of investment giants like Buffett and Soros. However, in Japan, there is an investor who is highly praised by even Buffett and Soros, and that is the "God of the Japanese Stock Market" - Isamu Chube.
Isamu Chube had a rough childhood and started with 70 yen at the age of 36 to become a legendary figure in the stock market.
Born in Hyogo Prefecture, Japan, in 1897, Isamu Chube began his journey after graduating from elementary school in 1912. In his twenties, he became a wealthy entrepreneur. However, during the Japanese financial crisis in 1927, his company went bankrupt, and he fell from being a wealthy man to being poor. After that, Isamu Chube spent three years studying hard in the library, reading various books and materials related to economics, and mastered the basic laws of economic changes.
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In 1931, at the age of 34, Isamu Chube made his first investment in the stock market. With 70 yen raised by his wife, he made a hundredfold profit and became a legendary figure in the Japanese stock market at that time. In 1933, Isamu Chube accurately predicted that the United States would stop the gold standard, which made him a god-like figure in the Japanese stock market. At that time, Chube was only 36 years old.
In his later years, Isamu Chube still had a sharp mind and made a huge profit of 2 billion yen at the age of 84.
In 1976, Isamu Chube, based on his own analysis, concluded that the domestic economy needed infrastructure construction to drive employment and economic growth. So, he immediately chose the right time to buy a large amount of cement sector stocks. The following year, the demand for cement soared, and Chube made a huge profit of 300 million yen.
In 1981, at the age of 84, Isamu Chube noticed a news report about the discovery of high-quality gold veins in the Hishigami Mine. He quietly bought a large amount of Sumitomo Metal Mining Company's shares, and as expected, at least 100 tons of gold were discovered later. The company's stock price soared, and Chube quickly sold the shares to make a profit of over 2 billion yen. He became the top individual income earner in Japan that year, once again creating a myth in the Japanese stock market.
Throughout his life, Isamu Chube experienced ups and downs in the stock market and condensed his investment experience into three investment philosophies.
1. Only eat 80% fullKawakami Ginko believed that selling stocks is much more difficult than buying them. Even if the timing of purchase is accurate, if the selling fails, one still cannot make money. The reason why selling is difficult is that people generally do not know what price the stock will rise to, so they are easily influenced by others, and in the end, they always miss the opportunity to sell due to excessive greed.
Second, the Three Principles of the Tortoise
Kawakami Ginko believed that investing in stocks is like the race between the tortoise and the hare. The hare failed because it was too confident, while the tortoise, although slow, won the final victory by being steady and cautious. Investors must have the same mindset as the tortoise, observing slowly and trading prudently. He summarized the "Three Principles of the Tortoise" for stock investment:
1. Choose potential stocks with a promising future that have not yet been noticed by the world, and hold them for a long time.
2. Keep an eye on the changes in the economy and stock market every day, and put in the effort to research.
3. Do not be too optimistic, do not think that the stock market will keep rising forever, and operate with your own funds.
Third, the Five Principles of Investment
Kawakami Ginko organized his life's investment experience into the "Five Principles of Investment":
1. Do not rely on recommendations when choosing stocks, but put in the effort to research and select them yourself.2. One must be able to predict economic changes one or two years in advance.
3. Each stock has its appropriate price level; if the stock price exceeds its deserved level, it is crucial to avoid buying at high prices.
4. In the end, stock prices are determined by their performance; stocks with poor performance but high prices should not be touched.
5. Unforeseeable events can happen at any time, so it is essential to remember that investing in stocks always carries risks.
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