📘 Long-Term Investment Essentials Series ⑨ [Why do I hold both US and Japanese stocks?] A Salaryman Investor's "US-Japan Hybrid Strategy"

Hello, this is Kattobei.
In this series, I am delivering content on the perspective of long-term investment, specifically focusing on "how to approach Japanese stocks."

This time, I'd like to address a question I'm often asked 👇

Certainly, looking at the past 10 years,US stocks have been the overwhelming winner.
But even so, I—

In this post, I will share the reasons for this and my thoughts onhow to "use" US and Japanese stocks differently.

🇺🇸 Why US stocks are the strongest (I don't deny this)

First, as a premise, the strength of US stocks is real 👇

✅ Economic growth potential

• Both immigration and population are increasing

• Wages are also growing

• The center of the technology industry

✅ Shareholder return culture

• Active share buybacks and dividends

• A shareholder-first mindset is deeply rooted

✅ Too many strong companies

• Microsoft, Apple, Amazon, NVIDIA...

• Companies that change the world keep emerging one after another

I also actuallyinvest about 30% in US stocks (ETFs + individual stocks).
However, even so, I do not "put everything into US stocks."

🇯🇵 Reasons why I still continue to hold Japanese stocks

✅ ① You can diversify currency risk

Between 2022 and 2024, the yen depreciated rapidly.

• Even if US stocks fall, the valuation doesn't drop due to the weak yen

• Conversely, there is a risk that dollar-denominated assets will decrease in value when the yen strengthens

That is precisely why I want to continue holding "yen-denominated assets," which are my living currency.I want to continue holding "yen-denominated assets," which are my living currency.

✅ ② The accuracy of information and sense of distance are different

Japanese stocks are 👇

• Information is readily available (IR, financial results, news)

• You can actually see the products and services

• It is easier to make investment decisions based on personal experience

For example, a realistic perspective like "Which company makes this best-selling item at the local supermarket?" means thatdaily life becomes analysis material.

✅ ③ Many undervalued stocks with excellent dividend yields

• Companies with a PBR below 1x are everywhere

• There are also many stable dividend stocks with 3-5% yields

• Domestic awareness of shareholder returns is also increasing year by year

While not "flashy growth," Japanese stocks are suited for steadily and quietly building assets. is Japanese stocks.

🧠 The "Japan-US Hybrid Strategy" I am conscious of

US stocks = growth potential, Japanese stocks = stability
The trick is to use this composition effectively 👇

Classification US Stocks Japanese Stocks What is expected Growth/Innovation Stability/Dividends Purpose of holding Speed of asset increase Asset protection and diversification Distance to information Distant (English, time difference) Close (tangible experience) Risks Exchange rates/Interest rates/Valuation Domestic demand/Policy/Structure

In my mind, Japanese stocks are the "foundation for earning dividends while protecting assets," and
US stocks are like an "accelerator for chasing growth while dreaming big."

👔 Kattobei's Real Portfolio Allocation (Reference)

• US Stocks (Mainly ETFs + some individual stocks): Approx. 30–35%

• Japanese Stocks (Mainly dividend & large-cap stocks): Approx. 60%

• Cash & Cash Equivalents: 5–10%

In my 10th year of investing, I have arrived at a balance that doesn't lean too heavily on either side.

I believe the most important thing is to not get swept away by trends and to continue for the long term with an allocation that I can manage and feel comfortable with.

✍️ Summary: It doesn't have to be one or the other, both are fine

"US stocks are the only way!"
"No, Japanese stocks have their future ahead of them too!"

Various opinions are flying around, but I have one stance👇

If you want to continue investing for a long time, it is important not to "deny either side," but to
understand both and find your own way to use them.

That is the philosophy behind the "US-Japan Hybrid Strategy."

Next time is [Series ⑩: What does it mean to bet on Japan as a nation?]📘
As the final installment, I will delve into the meaning of continuing to hold Japanese stocks from a more macro perspective.

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▶️ Kattobei's Investment Note Navigation [All Articles Summary & Reading Guide]
👉 Organized by category, such as high-dividend stocks, US stocks, and beginner guides, so you can quickly find the articles you want to read!

📘 Click here for the Long-Term Investment Essentials Series

① [What is the meaning of holding stocks in an era of population decline?] How a 30-something salaryman deals with a "shrinking Japanese economy"

② [What happens to stock prices when interest rates rise?] Considering the impact on Japanese stocks and "future investment decisions"

③ [Japanese stocks in the inflationary era, where should you buy?] Companies resistant to price increases and investor thinking

④ [Is it true that "Japan will no longer grow"?] Reasons for investment value even in a mature market and how a salaryman investor approaches it

⑤ [What companies grow in an aging society?] How to find Japanese stocks that "grow even if the population decreases"

⑥ [What Japanese companies become stronger through globalization?] The "ability to earn abroad" is the key to future growth

⑦ [Fiscal deficit and the Bank of Japan's exit strategy] What will happen to Japanese stocks from here on? How a salaryman investor prepares

⑧ [Even if people say "Japan is a dead end"] The reason I continue to invest and "how to face reality"

⑨ [Why do I hold both US and Japanese stocks?] A salaryman investor's "US-Japan Hybrid Strategy"

⑩ (Final Episode) [What does it mean to bet on Japan as a nation?] The reason a salaryman investor "still continues to hold Japanese stocks"

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