When it comes to Japanese companies, I only know Sony, Toyota, Nintendo, and Uniqlo. Are their stocks worth buying?

Hello! That's an excellent question. The four companies you mentioned are practically the face of Japan and among the most familiar Japanese brands to foreigners. While they are undoubtedly outstanding companies, there's sometimes a question mark between a "good company" and a "good stock worth buying."

Let me share my thoughts with you like an old stock market friend.

First, a Big Premise: A Good Company ≠ A Good Stock Worth Buying at Any Time

It's like finding a house with a fantastic location, layout, and quality. But if its price has been driven through the roof, jumping in could leave you holding the bag for years. The same logic applies to stocks. Even the best company, if bought too expensively, takes a long time to digest that valuation.

So, for these four companies, let's look at them separately and discuss their "Side A" and "Side B."

Talking About These Four "Japanese Icon" Companies

1. Toyota Motor (Toyota) - Ticker: 7203.T

Toyota in Your Eyes: Reliable family cars that "never die," the world's top-selling automaker.
Toyota in Investors' Eyes:
- Strengths (Side A):
  - Rock Solid: It's a global automotive behemoth with incredibly strong supply chain control, ample cash flow, and very healthy finances. Attractive for investors seeking stability and dividends.
  - Deep Technical Reserves: Don't be fooled by its perceived slowness in pure EVs; its technological reserves in hybrid (HEV), hydrogen fuel cell (FCEV), and other areas are world-class. This gives it strong strategic flexibility.
- Risks (Side B):
  - The "Elephant Turning" Challenge: The biggest story in the global auto industry right now is "electrification." Toyota's pace of transformation in the pure EV space does lag behind rivals like Tesla and BYD. The market worries if it can keep up with the times, which is the biggest uncertainty for its stock price.
  - Cyclical Industry: Cars are big-ticket consumer goods, closely tied to the global economic climate. When the economy is bad, people stop buying cars, impacting company performance and the stock price.

In a nutshell: If you believe Toyota will ultimately succeed in EVs and value its stability and dividends, it's a solid "ballast stock" choice. But if you're expecting Tesla-like explosive growth, Toyota probably won't deliver that.

2. Sony (Sony) - Ticker: 6758.T

Sony in Your Eyes: Sells TVs, headphones, cameras, and PlayStation game consoles.
Sony in Investors' Eyes:
- Strengths (Side A):
  - Not an Electronics Company, But an Entertainment Empire: Sony's most profitable businesses now are Gaming (PlayStation) and Music. It's also the world's largest supplier of image sensors (CMOS) (your phone camera likely has Sony components), a business with high technical barriers. Its film, financial services, and other businesses also contribute diversely.
  - "Black Tech" and IP Moat: Sony's brand and technological prowess remain formidable, coupled with vast amounts of gaming, music, and film IP (intellectual property). These form a strong "moat" that's hard for others to breach.
- Risks (Side B):
  - Overly Complex Business: Having many businesses is both a strength and a weakness. For the average investor, it's difficult to fully analyze all its business lines. Profits from gaming might be offset by losses in film.
  - Consumer Electronics Competition: Its traditional electronics businesses (TVs, phones, etc.) face fierce competition from Chinese and Korean manufacturers, constantly squeezing profit margins.

In a nutshell: Investing in Sony means primarily investing in its gaming/content ecosystem and its technological edge in core components. Don't think of it as just a simple "appliance stock" anymore.

3. Nintendo (Nintendo) - Ticker: 7974.T

Nintendo in Your Eyes: Mario, Zelda, Pokémon! Switch console! Ruler of the gaming world!
Nintendo in Investors' Eyes:
- Strengths (Side A):
  - World's Strongest IP Roster: Nintendo's core value isn't hardware; it's the treasure trove of IP that makes global gamers willingly open their wallets. Mario, Pokémon, Zelda... these are truly cyclical "gold mines."
  - Strong Profitability: The company has extremely healthy finances, sitting on a huge pile of cash with almost no debt. This "rolling in riches" status allows it to develop at its own pace, unconcerned with market pressures.
- Risks (Side B):
  - Console Cycle Dependency: Nintendo's performance and stock price are heavily tied to its console lifecycle. The Switch is now in its twilight years. The timing and success of the next-generation console are the biggest unknowns. The stock may enter a "wait-and-see" phase before the new hardware launch.
  - "Strong-Willed" Management: Nintendo is a company with a very distinct "personality" or "stubbornness." It rarely changes its rhythm to meet Wall Street's short-term expectations. This style can sometimes frustrate investors.

In a nutshell: Buying Nintendo stock is a bit like "feast or famine." You're betting on the success of its next hit hardware and software. If you have faith in its IP and creativity, buying during the low points of its cycle could yield good returns.

4. Uniqlo (Parent: Fast Retailing) - Ticker: 9983.T

Uniqlo in Your Eyes: Sells basic clothing, good quality, affordable prices.
Uniqlo in Investors' Eyes:
- Strengths (Side A):
  - Global Apparel Retail Giant: Uniqlo's parent is Fast Retailing, a global giant on par with ZARA and H&M. Its supply chain management, cost control, and store expansion capabilities are world-class.
  - Strong Brand & Overseas Growth: Uniqlo has successfully embedded the "LifeWear" concept into global consumers' minds. Its growth potential, especially in Asian markets, remains huge.
- Risks (Side B):
  - Very Expensive Stock: Fast Retailing is one of the highest-weighted stocks in the Nikkei 225. Its stock is notoriously expensive, with a very high barrier to entry for retail investors due to the price per lot (100 shares) (though many brokers now support fractional shares).
  - Fashion & Consumer Trend Shifts: While Uniqlo focuses on basics, it's still affected by changing fashion trends and consumer preferences. Simultaneously, new online fast-fashion players like SHEIN are constantly challenging it.

In a nutshell: Investing in Fast Retailing means betting on its position as a global apparel retail leader and its ongoing overseas expansion. But you need to be mindful of its high valuation and high share price barrier.

Before You Hit the Buy Button, a Few More "Buts"

Currency Risk: If you're buying Japanese stocks with RMB or USD, you must consider yen exchange rate fluctuations. Even if your stock gains 10%, if the yen depreciates 10%, you might break even when converting back to your home currency. This is a crucial risk when investing overseas.
How to Buy: You'll need to open a brokerage account that supports Japanese stocks, like Futu, Tiger Brokers, or Interactive Brokers. The process is slightly more complex than buying A-shares or Hong Kong stocks.
The Japanese Macro Environment: Recently, "Oracle of Omaha" Warren Buffett's significant investments in Japan have refocused global capital on the Japanese market. Japan is also emerging from years of deflation, and corporate governance is improving. This is a positive macro backdrop, but its future evolution remains uncertain.

To Summarize

These four companies are leaders in their respective fields. Long-term, they are all quality assets worth putting on your watchlist.
They aren't the kind of stocks that will make you rich overnight. They are better suited for long-term holding to share in the company's growth dividends.
Don't put all your money in at once. Consider starting with a small position or using dollar-cost averaging to spread out your cost basis and risk.
Most Importantly: Everything I've said is just for reference. The final decision is yours. Before buying, review their financial reports, stay updated on the latest news, and take responsibility for your money.

Hope this plain talk helps! Best of luck with your investments!