Stocks are usually traded in units of 100 shares (one unit), but depending on the securities company, it is possible to trade in “less than one unit” such as 1 share. Continuing from the first part , which introduced the merits and demerits of such “investment in shares of less than one unit” and securities companies that can buy and sell shares of less than one unit , in this article, we will introduce individual investors who practice “investment in shares of less than one unit”, I heard about the charm of it.
Experienced the Livedoor shock and moved to a long-term holding & diversification style
This time, we will introduce Mr. Kanato, who posts about his own asset management on the blog “Kanato’s Asset Building Research Institute”. He is a married man in his 40s who usually works for a company that deals with the service industry.
Kanato has been investing for about 18 years. It seems that he started investing at the same time as he started working as a new graduate.
“It was recommended by my father, who was in the stock market. I started by investing in Japanese stocks in units of 100 shares with a capital of 1 million yen.”
Focusing on short-term trading of Japanese stocks, investment results are trending favorably. However, in January 2006, the “Livedoor shock” occurred (*). The assets, which had increased to about 3 million yen, decreased to one-third, and the situation reverted to 1 million yen.
“At that time, I felt a fear of investing, and my enthusiasm for investing temporarily subsided. However, I continued my research through books and other sources, and changed my trading style for Japanese stocks from short-term trading to long-term holding. Also, I tried and errored to diversify my investment targets into “investment trust accumulation”, “U.S. stocks”, “FX system trading”, “crypto assets”, etc. As a result, in 2012, the total assets exceeded 10 million yen and reached 20 million yen in 2016. After that, although it was affected by the “cryptocurrency (crypto asset) bubble burst” in 2018, it basically continued to rise. ”
If you invest in shares less than one unit, you can operate in units of one share like US stocks
Since 2020, kanato has also been working on Japanese stocks less than one unit investment. The original purpose was “shareholder benefits”, and it seems that even shareholders holding fractional shares selected and held stocks that were eligible for the benefits.
However, recently there have been an increasing number of cases in which shares less than one unit are not eligible for the preferential treatment. Since the merit of “getting preferential treatment just by owning it” is decreasing, we changed the purpose to “aiming for capital gains and income gains through long-term investment”.
Invest gradually in large companies and companies with growth potential in each sector
Now, let me tell you specifically about Mr. Kanato’s portfolio of shares less than one unit. Below are the stocks of less-than-one-unit shares actually owned by kanato (below, information as of September 6, 2022).
“A total of 20 stocks are held as shares less than one unit. 16 of them are shares of companies that represent Japan, such as Toyota Motor Corporation (7203). The remaining 4 stocks are for future growth. We choose start-ups that can
kanato’s fractional share portfolio
“Large companies are attractive because they have stable management and low risk of bankruptcy. The first thing I bought was Toyota Motor Corporation, and after that, I bought telecommunications, finance, and pharmaceuticals to build a solid system. We have increased the number of investment targets by dividing them into sectors such as ‘aviation’ and ‘retail’.Currently, the ratio of ‘Toyota Motor Corporation’ is slightly high, so we are thinking about how to rebalance.”
“Emerging companies focus on ‘growth potential’. ‘Seria (2782)’ is a company that operates 100-yen shops that are often seen in the city. The company’s security company “Sogo Security (2331)” is a brand that I’ve been interested in because I often see it in TV commercials recently, and “Agricultural Research Institute (3541)” is a platform that allows farmers to wholesale directly to supermarkets. The company I run is a company that my wife heard about on the radio and recommended it to me, saying it looked interesting.The reasons for each are different, but we are investing with the expectation of further growth.”
How to buy fractional shares?
Mr. kanato flexibly changes the method of purchasing these fractional shares from time to time. Initially, we invested a fixed amount every month, such as “10,000 yen per month, 20,000 yen at bonus time”, but after that, due to changes in the commission rules of securities companies (described later), shares less than one unit account for total assets. I changed the method to buy each brand by looking at the ratio of .
Currently, the method has been changed to buying domestic stocks less than one unit on a regular basis every month. In addition, it seems that they are considering increasing the stocks themselves to invest.
“The amount we have used to purchase fractional shares so far is about 800,000 yen. Although there are fluctuations, as of September 2022, it will be around 850,000 to 900,000 yen.In 2022, the Nikkei Stock Average will As you can see from the slump, it’s not a situation that will increase significantly, but when the stock price is down, it’s time to buy, so I plan to buy steadily from a long-term perspective.”
The appeal of “fractional unit stock investment” is that it is easy to test your own ideas
As mentioned above, kanato is practicing various investments. Compared to them, what is the appeal of “investment in shares less than one unit”?