Key Facts
• In February 2024, a 40s office worker, Michio Katsumata, opened a new NISA account.
• Katsumata invested ¥820,000 in 500 shares of Chikara no Moto Holdings at ¥1,630/share.
• The company offers shareholder benefits: 8 ramen meals annually for 500 shares.
• By January 2025, the stock price dropped to ¥894, causing significant unrealized losses.
• In January 2025, the company expanded benefits to ¥16,000 annually (¥20,000 for 1+ year holders).
• Stock price rebounded but remained at ¥1,459 by August 15, 2025, with ¥100,000 unrealized loss.
• Key investment tips: prioritize company performance, avoid overly generous benefits, diversify holdings.
• Avoid buying during high-price periods or near fiscal year-end to reduce risks.
• Consider selling stocks if prices do not rise within a year of purchase.
• “Free-riding” shareholder benefits, though legal, is discouraged due to its impact on companies.
Summary
Investing in stocks for shareholder benefits can be appealing but carries risks. Michio Katsumata’s experience highlights the importance of prioritizing company performance over benefits. After investing ¥820,000 in Chikara no Moto Holdings, he faced significant losses as the stock price dropped. Despite a rebound following expanded shareholder benefits, he still holds unrealized losses. To avoid similar pitfalls, investors should focus on financially strong companies, diversify holdings, and avoid buying during high-price periods. Selling underperforming stocks after a year is also recommended. Additionally, while “free-riding” benefits is a common practice, it is discouraged due to its negative impact on companies. Long-term investment strategies focusing on growth potential, rather than solely on benefits, are key to success.
