Key Facts
• Overseas investment in Japanese stocks has surged significantly in recent years.
• Orbis Investments, managing $6 trillion, doubled its Japanese stock allocation in 2025.
• Key strategy: Identify gaps between ‘true corporate value’ and stock prices.
• Orbis analyzes 60 years of data to assess corporate value across economic cycles.
• Mitsubishi Estate is considered undervalued, with assets priced at 50% of their value.
• 80% of Mitsubishi Estate’s debt is at fixed interest rates, mitigating market risks.
• Orbis invested in Japanese trading companies a decade before Warren Buffett.
• Trading companies were purchased at 0.5x tangible net assets with 4%+ dividend yields.
• Orbis avoids U.S. tech stocks like the ‘Magnificent Seven,’ citing overvaluation risks.
• Growth sectors face intense competition and shorter corporate life cycles.
• Orbis employs a ‘contrarian’ approach, focusing on undervalued opportunities.
• Individual investors are encouraged to adopt value investing for long-term returns.
Summary
Orbis Investments, a $6 trillion fund, has significantly increased its focus on Japanese stocks, citing undervaluation as a key opportunity. By analyzing 60 years of data, Orbis identifies gaps between corporate value and stock prices, exemplified by Mitsubishi Estate, whose assets are priced at half their value. The firm also succeeded in early investments in Japanese trading companies, achieving high returns before exiting. Avoiding overvalued U.S. tech stocks, Orbis emphasizes a contrarian approach, encouraging investors to focus on intrinsic value rather than market trends. This philosophy highlights the importance of long-term value investing for sustainable returns.
