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Forums - Nintendo Discussion - Nintendo Investors Thread

OceanJ said:
Tarumon said:
Maybe it's what I do and how I made my money. Sustained price weakness is a great way to accumulate wealth. I would at least continue buying for another year or two. If you are still trying to make it, this is even better as it literally waits forever until it launches again, allowing you to beef up your holdings over time at your leisure. Especially if you find it enjoyable following an industry and a stock this closely. As long as the company did not veer itself into eminent danger (excessive leverage kills just about all businesses), bite a big chunk out of this baby!!!

The average person benefits little from stock trading, the returns are abysmal over time, and that's blended up by professional results! Instant pricing availability, split second trading availability, makes the stock market an easy place to move your money through it, but ever more diffcult to keep it growing in it. So instead of listening to the BS about diversification, allocation, blah blah. Stick with a few that you truy understand, then pour any time you would have spent on your career or on having fun, and over time you'd have much more wealth and fun than the typical miserable stock market participant.


A lot of folks are scared by the stock-market, that the game's rigged.  I still think it's the best way to make wealth.  But I have to endorse basic principles of diversification and not putting your eggs in one basket.  

Nintendo is a great buy right now, hands down.  With so much of their book-value & tangible book-value made up of Cash & Short-Term Investments, the downside risk right now is pretty much zero.  It's crazy.

It is rigged.  Paying 20-30-40-100 times earnings, and being brain washed into accepting it is crazy.  Also, the more you diversify, the more your porfolio will perform @ market, the market generates a return that simply doesnt justify the risks, so every cycle, bam!  One down year wipes off an entire cycle worth of gains.  All trading strategies just manage how and when you are exposed to risks.  But the systematic risk that is the casino itself can only be avoided by having as little chips as you can on as big a return as you can get and leaving the table with your winnings while you still can.

Have you come across Black Swan theory?  Even though I dabbled in stocks, bonds, real estate, commodities, fx, having 95% of your portfolio making a solid high fidelity returns but still betting with the 5% for multi-baggers has been the easiest approach I've tried.  



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Great news last night with Nintendo regaining a lot of value on Osaka. The gains were credited to NDP reporting... which surprised me. It also reinforces that most people who invest in Nintendo are not like us. They are not in the games trenches, and they definitely aren't following weekly sales reports on VGChartz. It provides a great opportunity if you follow the industry closely. I'm also not big on diversifying. I've been an all eggs in one basket investor to date and it's worked very well. Hopefully it continues to do so. I try to become as big an expert I can on one industry and invest heavily in an under-valued stock. I like strong, established companies and industries. I've invested in automobiles, banks and energy in the past. I like Nintendo for it's high cash reserves and very established brands. Even if its consoles bombed, the mario image and games have tremendous values. But I don't expect their consoles to bomb, since they have an outstanding history of using older tech to produce high profit margins.



Major fall for the yen, too, it's at 89 per US dollar. This is outstanding!



TheLastStarFighter said:
Major fall for the yen, too, it's at 89 per US dollar. This is outstanding!

Crazy I know! I think, following the trajectory we have now, Nintendo will be profitable regardless of Wii U's sales due to exchange rates being in their favour. Nintendo's makes a bulk of their money on software. Furthermore, Gamecube was sold at a loss and yet were profitable. Wii U's sales won't pick up without game releases, its simple so Nintendo needs to get going with a new Nintendo Direct and showing those games with release dates.



A 90yen dollar probably makes WiiU profitable per unit in the US. Same in Europe. The timing couldn't be better with a full year of WiiU and possibly 3DS's biggest year ahead. I'd really like to see it fall further. A 100yen dollar could make a $299 deluxe profitable for next Christmas, and I think that's where they need to be for a mass market adoption.



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TheLastStarFighter said:
Great news last night with Nintendo regaining a lot of value on Osaka. The gains were credited to NDP reporting... which surprised me. It also reinforces that most people who invest in Nintendo are not like us. They are not in the games trenches, and they definitely aren't following weekly sales reports on VGChartz. It provides a great opportunity if you follow the industry closely. I'm also not big on diversifying. I've been an all eggs in one basket investor to date and it's worked very well. Hopefully it continues to do so. I try to become as big an expert I can on one industry and invest heavily in an under-valued stock. I like strong, established companies and industries. I've invested in automobiles, banks and energy in the past. I like Nintendo for it's high cash reserves and very established brands. Even if its consoles bombed, the mario image and games have tremendous values. But I don't expect their consoles to bomb, since they have an outstanding history of using older tech to produce high profit margins.


To me it proves that day to day movement of a stock price is a very simple-minded thing.  Much more simple-minded than investors who bury their brains in stats would like to believe.

A simple spin-job PR release like Nintendo did last night, is enough to move it up.   And all the negative publicity around the Wii U, the overall Video-Game industry revenue declines, and fear-mongering that traditional consoles are dying...is enough to keep it down around these levels.

Short-term, a stock-price is one giant spin-job.  It's only in the longer term that actual stats & company financial reports puts it back where it should be.

Nintendo's stock right now, should be trading close to $20 / share.  It's tangible-book value is about $14/share...with a new console on the rise it's totally insane to be trading below tangible-book.

When you buy a Nintendo share today, you're very close to buying just their Cash & Short-Term investments in the bank!  It's like getting a $1 for a $1 almost!  Shares today are hardly factoring in the value of any Nintendo IP or profits.  It's totally insane.



This is an interesting thread although I don't understand anything :p. I'd like to invest but don't know where, how and how much is required. Maybe I can learn a thing from you guys =)



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Soma said:
This is an interesting thread although I don't understand anything :p. I'd like to invest but don't know where, how and how much is required. Maybe I can learn a thing from you guys =)


I'm just an amateur investor and don't want to pretend to dish out wisdom.  But I've had some success and just so happen to think Nintendo is a good investment right now.

But as to the "where" of your question, you need a Brokerage account.  Most individual investors use discount brokerages, like Ameritrade, ScottTrade, E-Trade, so you'd have to open an account with one of them.

For the "how much" part, brokerages make their money off the commissions they charge you when you buy and sell a stock.  It's around $10 usually each time, so $20 round-trip.  The general wisdom is you don't want the fees to be more than 2% of your total money.  So that means usually $1000 is an accepted minimum amount.  But you also don't want to be investing money that you need.  For example the money you'll need to live off of in a year or so's time shouldn't be risked.

Otherwise investing generally - whether in real-estate, stocks, or whatever else that gives you returns, over the long haul, is a good way to make wealth and help you retire comfortably. Why work when your money can work for you?

For the "how" part, once you've opened an account and put some money into it with which to invest, you then have to start teaching yourself about how buying & selling stocks work, and which ones you want.  Then make your first purchase.  There's so much to know in the investing world you can never know it all.   And with investing you typically have to learn the hard way...make your mistakes early so you have time later to recover and prosper.

The way I make it simple, is by following just the companies I actually like, or hate - for whatever reason, and then look for good entry points into those.  That method whittles the whole stock world down to something manageable, and keeps me inherently interested in what's going on.



I started investing several years ago once I started working full time. I just invest directly through my bank. It's quite easy, and for me there is no limit on how little I invest.  To date I have had very good success, and I'm hoping it continues with Nintendo.  As Ocean has outlined Nintendo is very undervalued right now so it's (likely) an excellent investment. Buying Nintendo shares should be considered a moderately long-term investment as I would expect them to grow over the next year or two.  Investing requires knowledge, patience, calmness and an understanding of what you are investing in.  I'd be happy to answer any questions you have, though I'll be clear that I am not an investment advisor and any investing you do are your own decisions.



Tagged for future reference.

Thanks for posting!