New investment in Corona.

I am taketake, a salaryman and frugal investor.

This time, I will summarize the reasons for newly investing in Corona (TSE: 5909) and the perspective I value on 'choosing companies that perform well over the long term.' My investment style is to steadily accumulate 'plain but strong companies.' This Corona investment is exactly that type, a stock that hits the trifecta of dividends, financial health, and business stability.

■ What kind of company is Corona?

Corona is a long-established manufacturer of heating equipment and housing facilities headquartered in Sanjo City, Niigata Prefecture. It boasts top-tier domestic market share, particularly in the fields of oil fan heaters and oil stoves. It has a long history of over 90 years since its founding and is a company with high brand recognition nationwide.

And above all, it is characterized by sound and conservative management. It is not the type of company that chases growth by taking on large amounts of debt, but rather one that maintains a solid financial foundation.

As Japan's population continues to decline, companies with stable cash flow and a sound stance on shareholder returns are stronger than those expected to show flashy growth. It is truly a stock that can be called an 'honor student of defense.'

■ Reason for investing in Corona ①: Stable dividends and a high total return stance

The biggest reason for deciding to invest is its stance of consistently paying dividends.

・Does not force dividend increases
・Does not cut dividends sharply even if performance drops
・Steadily accumulates profits

This style is perfect for long-term investment.

I am accumulating dividends as a 'second salary,' and having a company like Corona in my portfolio provides a great sense of security. Companies that make products that are not easily swayed by the economy and continue to be needed offer benefits the longer they are held.

■ Reason for investing in Corona ②: Solid financial structure

Corona has a high equity ratio and excellent financial health. 'Management that does not rely on debt' proves its true value when the economy becomes unstable.

Japan is entering an era where prices and interest rates may rise, which could increase financing costs for companies. In such an environment, companies with sound finances are strong.

A company that does not collapse even in a recession, maintains profitability, and continues to pay dividends. This is exactly the kind of 'defensive stock' that long-term investors look for.

■ Reason for investing in Corona ③: Daily necessities are strong

Heating equipment is a 'necessity,' regardless of whether the economy is good or bad. Especially in regions along the Sea of Japan, where snow is deep, the demand for heating is extremely stable.

Recently, energy-saving performance has improved, and the company is also active in creating environmentally friendly products. Energy-saving heating that is kind to household budgets is a field that definitely has demand in today's era of high prices.

Investing in 'demand that will not disappear' is also part of my investment philosophy.

■ A stock that perfectly fits my investment policy

While working as a salaryman, I have been increasing my assets by focusing on household budget improvement and dividend investing.
In doing so, my goal is to strengthen the 'pillar of passive income' known as dividends rather than relying solely on my monthly salary.

Corona was a stock that was very compatible with my investment policy.

・Solidness over flashy growth
・Demand that continues to be needed even in a recession
・Conservative and long-term management
・Stable dividends

It is truly the type of stock that gives you peace of mind while holding it.
By calmly accumulating such companies, the entire portfolio becomes less volatile.

I do not engage in short-term trading, but rather invest by 'waiting' patiently for the long term.
As mentioned in a Munger book I read recently, the power of 'waiting' is truly important.

■ Investing is a 'means to enrich your life'

Investing is not just an act of increasing money.

・Expands options
・Reduces work stress
・Increases time available for family
・Lightens future anxiety

It leads to improvements in this kind of 'quality of life'.
As my dividends have accumulated, I have also gained more freedom in how I work and spend my time than before.

I will continue to steadily build my assets while investing little by little in companies that match my values.

■ Summary: Corona is an excellent stock for long-term investment

Here is a summary of this new investment.

✔ Stable dividends
✔ Solid financials
✔ Demand that is not easily swayed by the economy
✔ Demonstrates strength with long-term holding
✔ Good compatibility with investment policy

Corona is a 'company that does not grow significantly, but continues to generate stable profits'.
I feel that this is exactly the type of stock suited for investors who want to build assets through dividend reinvestment.

I plan to continue researching companies while steadily increasing my holdings.

See you next time!