Introduction
Recommendation

Chapter 1: The Market Doesn't Ignore You

Being wrong doesn't necessarily mean you'll lose money, and being right doesn't necessarily mean you'll profit.
Investment idea = idea not reflected in stock price
The first step in investing is to question common sense.
Not everything written in textbooks is correct.
All information is biased
Bias on my side
There's no need to spend money on information gathering.
'Investment Club' for information gathering
Can Investors Beat the Market? - The Efficient Market Hypothesis
Passive vs. Active Management

Chapter 2: The Long Journey to Hedge Funds

The Journey to Starting a Hedge Fund
Joining Nomura Securities - The Intense Discomfort I Felt
Patterns of individual investors who suffer losses
Overseas Investment Advisory Office - Receiving Help from Yoshitaka Kitao
A sergeant who gave me a lot of insight
Nomura Securities New York Branch - The Whereabouts of the 'Rotten Egg'
Convertible bonds? Purchase of bonds with warrants, arbitrage from short selling stocks
Meeting with Tiger Management
Joining GS Tokyo Branch - The Dawn of "Long/Short Management"
Starting a hedge fund
What is a hedge fund?
Meeting with George Soros
Nomura Securities today

Chapter 3: The Destructive Power of Undervalued Small-Cap Growth Stocks

What on earth does 'underrated' mean?
What is a 'fair PER'?
PBR is actually not helpful
Net cash ratio
Cash-neutral PER
Problems with Cash-Neutral PER
Deriving an appropriate PER through growth rates and interest rates
The Stage 1 model is effective for stocks with low PERs.
Are stocks with high PERs disadvantaged when interest rates rise?
Will buying undervalued stocks make a profit?
The Destructive Power of Investing in Undervalued Small-Cap Growth Stocks
Why Small Caps Are Undervalued
The worse an industry's image, the more opportunities it holds.
90% of small-cap growth depends on management
Positive and negative feedback
Climbing the valuation ladder
Invest 1 million yen in undervalued small-cap growth stocks now.
There's no such thing as "talent" in stock investing.
The Difference Between Growth and Value Investing
Mothers (Gross) is the worst market
What is the ideal role of a value investor?
Trend-following and counter-trend investing
Bottom-up and top-down approaches
Bottom-up approach believer
Stock Investment and Probability Theory
Bayesian thinking

Chapter 4: You Can Survive Hell by Holding Stocks - A Path Walked for 25 Years

The evolution of K1 Fund's management style
Fund performance by period
July 1998 - September 1999 "The party has begun, so let's go home."
Investing in small-cap stocks is advantageous when operating with less capital.
September 1999 - February 2000: The IT bubble and shorting of technology stocks resulted in significant losses.
From February 2000 to October 2005, he made significant progress by investing in REITs and real estate investment advisory firms.
From October 2005 to December 2007, the stock market crashed and foreign buying led to a collapse of short positions, resulting in significant losses.
The hellish Lehman Brothers crisis from December 2007 to February 2009
The Abenomics boom from February 2009 to February 2018 yielded significant profits thanks to the Bank of Japan's ETF purchases.
From February 2018 to March 2020, the stock market plummeted due to the COVID-19 pandemic, leading to massive purchases of major bank stocks.
Large bank stocks surged between March 2020 and June 2023, with stock prices rising across the board.
Regarding the arbitrage balance of stock index futures

Chapter 5 REITs - Catch a Falling Knife Twice

Unexpected IPO winnings worth 2 billion yen
The Lehman Brothers crisis and the REIT crash

Chapter 6: Highlights of Practice - Long

HS Holdings
Olympus
UT Group
Presans Corporation

Chapter 7: Highlights of Practice - Short? Pairs Trading

We do not recommend shorting individual stocks for individual investors.
Short diversification is foolish.
Uniqlo investment ended in failure
Darkness over the Nikkei 225 Index
How to Profit from Short Trading, Finally Realized
Short's success story
pair trading

Chapter 8: Investments You Should Never Make

ESG investing is nonsense
Corporate governance of Japanese companies
AIJ Investment Advisory Fraud Case
Why You Should Never Buy Private Stock
Financial product fees that require caution

Chapter 9: The Future of the Japanese Stock Market

Catastrophic risks likely to occur within 10 years
Eight Predictions About the Environment Surrounding Japanese Stocks
Domestic demand will continue to shrink.
Japanese people's English skills are at a crisis level
The keyword is management integration
The era of Japanese stock shortages is upon us.

The text that appears

Recommended by Park Du-hwan, Kkangto, and Lee Jeong-yoon!
The investment philosophy and investment methods of Japan's top taxpayer, surpassing even Chairman Son!

“My Investment Techniques” is different from the many introductory books on stock investment available on the market.
This book is a memoir, a raw account of the author's journey from managing a hedge fund to surviving, growing, and ultimately retiring from the stock market.
He is a legendary figure who once rose to the top of the list of Japan's richest people (highest taxpayers in Japan) while still a salaried worker.
He paid a whopping 3.69 billion yen, or about 36 billion won in Korean currency, in taxes.
This record far exceeded the tax paid by SoftBank Chairman Son Jeong-ui, Japan's largest conglomerate.
He published this book with the thought that, "If I can't pass on the hedge fund management know-how I've accumulated to my successor, I'll reveal it all to the world."
He summarized the three essential questions that investors must ponder and consider, and presented them as new standards that will change the lives of investors.

A management strategy that turns failure into opportunity. Lessons learned from failure created a '1 trillion won profit.'

Most investment books are obsessed with boasting about successful strategies and returns.
But this book is different.
The author's main content focuses on numerous failures he experienced in the Japanese stock market over many years, such as the bursting of the IT bubble, failed REIT investments, poor timing of short positions, and the Lehman Brothers crisis.

He vividly demonstrates the losses that overconfidence in market sentiment and misinterpretation of information can cause through his failed short position in Uniqlo stock.
And rather than simply regretting it, it logically delves into the causes of failure and provides a framework to avoid repeating the same mistakes.
This can be an important criterion for individual investors to self-examine.
So, “success is not something that is repeated in the same form several times.
As he said, “I think stories of failure will be more helpful,” this book will be much more helpful to those who want to learn “how not to fail” rather than “how to make a profit.”

Understanding the reality of "undervalued small-cap growth stocks" and the strategy that enabled an ordinary office worker to achieve a 93x return.

One of the central themes of this book is a long strategy centered on "undervalued small-cap growth stocks."
While many investors blindly trust large-cap stocks, well-known names, and analyst recommendations, the author seeks out companies overlooked by others, industries with negative image, and areas not covered by the media.
As a result, it recorded an incredible return of 93 times.
He emphasized, “Investment ideas come from finding ideas that are not reflected in stocks.”

For example, the case of Japan Airlines (JAL) and large banks making large investments by taking advantage of the market's negative bias clearly shows that 'interpretation, not information' determines profits.
Moreover, beyond simply recommending investing in undervalued stocks, it analyzes, through specific examples, why the market undervalues ​​small-cap stocks, why profit opportunities exist at that point, and what criteria should be used to minimize risk.
In particular, the net cash ratio, cash-neutral PER, and PER settings based on growth rates and interest rates are useful practical indicators for evaluating the intrinsic value of stocks.

An investment guru explains it himself.
How to Use Information for Individual Investors

These days, investors suffer from information overload rather than information deficiency.
For those feeling confused by the countless news reports, analyst reviews, and stock recommendations on YouTube and social media, this book consistently delivers the message that individual investors can beat the market.
He proves that paid information is not essential for performance, drawing on his experience canceling all expensive information services, such as Quick, operated by subsidiaries of Bloomberg and Nikkei.
The information sources he recommends are practical media such as the Company's Genealogy.
He recommends saving money on newspaper and magazine subscriptions and buying stocks.
He also emphasizes that the most important thing in gathering investment information is the ability to determine "who sent it," and advises that you train yourself to critically examine analyst and media bias and to penetrate the source and intent of information.

This book is not simply a 'book to read', but a 'book to use'.
It's filled with candid yet sharp insights, as if a senior were imparting advice to a junior, on everything from the attitude investors should have to the ability to interpret information to their attitude toward failure.
If you are wandering around, unable to decide on an investment direction, I recommend reading this book.
It will surely illuminate the path you must take.