The Japanese Money Tree: How Investors Can Prosper from Japan's Economic Rebirth

285 Pages·2007·1.53 MB·English

by  Andrew H. Shipley

Praise for
The Japanese Money Tree
“Andrew Shipley has written an enlightening, insightful, and extremely read-
able book on how the investment and new finance opportunities of post-
bubble, post-deflation Japan are being pursued. This book is “must” reading
for any student, practitioner, or professional money manager interested in
contemporary Japan.”
—Allen Sinai, Chief Global Economist, Strategist & President,
Decision Economics, Inc.
“Andrew Shipley provides a highly readable account of the new Japan that is
finally emerging from a “lost decade” of stagnation, deflation, banking fail-
ure, and other problems. While he provides notes of caution when due, this
is a tale of exciting new business opportunities that Americans should learn
about.”
—Edward J. Lincoln, Director, Center for Japan-U.S. Business and
Economic Studies, Stern School of Business, New York University
“Andrew Shipley, a true “connoisseur” of the Japanese economy, offers excit-
ing insights into the “New Japan.” This new book focuses on the changes
that will bring Japan to the forefront of Asia’s new century.”
—Håkan Hedström, senior strategist at Deka Investment,
one of the top 3 German asset management companies
“Japan’s lost decade was bound to end, and Andrew Shipley’s book describes
the efforts of those who had prepared for a new and better decade even
before it was clear that the bad times would end. He focuses particularly on
the ability to find Japanese companies rich in intangible assets that will give
them an advantage as they compete in the global market, especially against
new competitors from China and the rest of Asia. This book is important
reading for investors everywhere.”
—Rich Mattione, partner, Grantham, Mayo,
Van Otterloo & Co. LLC (GMO)
“Shipley, who spent 15 years living and working in Japan, writes from an
insider’s perspective and draws on revealing conversations with the country’s
key economic players—both foreign and Japanese—to bring readers a knowl-
edgeable, intimate portrait of today’s Japanese economy. Both professional
money managers and savvy individual investors will gain invaluable insights
on how to reap the benefits of Japan’s economic rebirth.”
—Kirkus Business & Financial Report
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The Japanese Money Tree

The Japanese Money Tree
How Investors Can Prosper
from Japan’s Economic
Rebirth
Andrew H. Shipley
An Imprint of PEARSON EDUCATION
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2007 by Pearson Education, Inc.
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Printed in the United States of America
First Printing: February, 2007
ISBN 0-13-134551-6
Pearson Education LTD.
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Library of Congress Cataloging-in-Publication Data
Shipley, Andrew H.
The Japanese money tree : how investors can prosper from Japan’s economic rebirth /
Andrew H. Shipley.
p. cm.
Includes bibliographical references.
ISBN 0-13-134551-6 (hardback : alk. paper) 1. Investments, Foreign—Japan. 2. Japan—
Economic conditions—1989- I. Title.
HG5772.S5165 2007
332.67’30952—dc22
2006021478
For Laura, Owen, and Elle
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C
ONTENTS
Introduction and Executive Summary xv
Chapter 1 From ultimate capital destruction machine
to the best value in the world
Japan returns to favor among global
investors 1
Chapter 2 Intellectual property wars
Investors to increasingly focus on the hidden
strengths of Japanese firms 25
Chapter 3 Cultural arbitrage
Foreign hedge funds pursue opportunities
in Japan 57
Chapter 4 The future of Japanese management
Private equity firms lead Japanese
restructuring efforts 85
Chapter 5 Barbarians at the Genkan
Japan’s fledgling M & A market yet to
internationalize 107
Chapter 6 The Manhattan of Asia
Tokyo experiences stunning urban
renaissance 133
Chapter 7 Birthrates and Bushido
Market watchers see surprising opportunities
inupcoming demographic shifts 163
Chapter 8 The Chinese paradox
Japanese firms face conundrum in crucial
Chinese market 197
Chapter 9 High-speed capitalism
Structural reforms lead to stronger firms, more
investment opportunities 219
Index 247