 Hey everyone, this is Dan. Let's talk about Warren Buffett's awesome Japanese portfolio. We will also figure out how we can replicate Buffett's success or maybe even beat his performance. In the Berkshire Hathaway shareholders letter that was published on February 24th, Warren Buffett talked about the success of the shares that he bought of the five Japanese trading companies. The trading companies are Sumitomo, Mitsui, Maro Bene, Itachu, and Mitsubishi. Buffett mentioned that by year end 2023, he saw the gain of 61% for his Japanese portfolio. Here's a section of the shareholders letter about these Japanese companies with the 61% gain. In this table, I'm showing the percentage gain of each of the five stocks for the last 10, 20, 30, 60, 120, 180, and 240 trading days. 20 trading days is about a month and 240 trading days is about a year. I color coded each time period with green being the most profitable and red being the least profitable. I also listed the returns of SPY, the S&P 500 ETF, and QQQ, which is the NASDAQ 100 ETF for comparison purposes. You can see that Mitsubishi is the best performer. If we bought the same dollar amount for each of the five companies, the one year return would have been 29.9%, not as good as the 61% mentioned by Buffett. That's because Warren Buffett has a different mix among the five stocks. However, if we pick the best three companies out of the five companies, which are Mitsubishi, Mitsui, and Sumitomo, and if we buy three dollars of Mitsubishi for each dollar of Mitsui and Sumitomo, we will give more weight to Mitsubishi, which is the best performer. With this mix of the three companies, we would have achieved 67% gain for the last year, beating Buffett's 61% gain. This will be the portfolio that I'm building. If you like what you've seen so far, please click the like, subscribe and notification buttons so that you can receive notifications when I post my new videos in the future or when I send text updates in the future. It'll also help with the YouTube ranking algorithm. Thank you very much. Let's continue. We have a lot of interesting stuff to cover. Of course, as they say, past performance is no guarantee of future results. Past performance, however, does give us some ideas about the probability of success. What we are seeing here are three companies with a track record of success, at least for the last year or so. To ensure I'm investing in the right stocks, I've also looked into the big picture issues related to Japan. I will also continue to monitor any news related to these companies and will update my subscribers accordingly. So what are these Japanese trading companies anyway? Here's a description of trading companies. I highlighted the important words. They are companies that engage in logistics, plan development, and other services, as well as international resource exploration. These companies have a lot of international trade experiences, and they have extensive risk management capabilities. They also can generate captive supply and demand for their own operations, and they have very large-scale in-house marketing information systems. They can also provide capital in the form of credit, financing, and export services. They actually add sometimes investment funds or private equity funds. This is a list of the market caps of five trading companies in terms of US dollars, with Mitsubishi being $89 billion. These trading companies are certainly large and resourceful companies. But what made Warren Buffett want to buy these stocks was because the Japanese economy and the Japanese stock market are expected to finally go up after many years of stagnation. According to a recent article published by Goldman Sachs, the TOPIX index, which is an index of Japanese stocks, is projected to rise about 13% by the end of 2024. Indeed, the index already went up a lot in 2023. And the key part of Goldman's forecast is that the Tokyo Stock Exchange Company Governance Reforms has incentivized listed companies to boost valuations and earnings. And companies can potentially be delisted if they are unable to show they are using the capital efficiently. So that's starting a lot of corporate governance reforms in the Japanese economy. Foreigners and corporations are expected to remain net buyers of Japanese stocks. That certainly will help boost the Japanese stock market. Three years of chronic deflation, inflation started to happen finally in 2023, which is actually beneficial to the Japanese economy. And Goldman quoted the forecast figure of 12% growth in TOPIX earnings per year in 2023 and 8% in fiscal year 2024 and 7% in fiscal year 2025. Let's look at this chart. I developed a composite index showing the stock performance of the three companies according to the 3-1-1 ratio I mentioned. If you look at the daily chart of our composite index, we can see that it has indeed been going up nicely since the beginning of the year. The RSI value at this point is very high, however. That means the stocks are overboard for the short term. As you can see, the index has already dropped in the last couple of days because of the high RSI value. I will therefore wait for the index to drop more in the next few days. When it starts to rebound, that's when I will buy shares with the dollar ratio of Mitsubishi 3, Mitsui 1, and Sumitomo 1. I will post my trades in the community section of my YouTube channel as well as on my Twitter account. To sum up my strategies, I will buy the dollar amounts of the three stocks, Mitsubishi and Sumitomo, at the 3-1-1 ratio. I will wait for the RSI value to be lower before I buy, which will probably be in the next few days and I'll certainly send out a text update to my subscribers when I buy shares. I will swing-trade some of the shares according to technical indicators such as the Bollinger Bands, RSI, DMI, Subcastic Indicator, and MACD. I will update my subscribers about some of my trades and about my latest market analysis by way of the community section of my YouTube channel and by way of my Twitter or X account. At this point, I'd like to encourage you to subscribe to my Twitter or X account in addition to subscribing to my YouTube channel. My X account is DanMarketL. For example, on February 21st, I tweeted that I sold the rest of my Apple shares at 1.2% gain to Lock In Profit before it becomes a loss at the time the market was dropping. And then on the same day, I tweeted that I bought NVIDIA shares at 1.8% below my sell price the day prior and since then, my NVIDIA share bought on that day have gone up quite a bit. On February 23rd, I bought the CSWC, which is Southwest Capital Stock, which is recommended by Louis Nevalier for its high dividends since then has gone up a little bit but not much yet. And then on the same day, I tweeted that the reason I bought CSWC was because it dropped for a few days, but it seemed to be rebounding from support. Thank you for watching All the Way To Here. Again, I'd like to remind you to click the like, subscribe and notification buttons. As usual, I will very much appreciate your comments, questions and suggestions. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and analyses for educational and entertainment purposes only. If you want to buy or sell stocks, you should make your own decisions and you should definitely consult with your financial advisors before you do so. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.