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21 Japanese Stocks with US ADRs

I read with interest Geoff Gannon’s call today to buy Japanese stocks, buy them soon, and buy them big. You can certainly get exposure by simply buying a Japanese ETF, of which there are a few to choose from. However, I agree with Geoff that it would be better to pick out some individual stocks and create a basket. If you decide to load up on Japanese stocks, you don’t want to be too focused if you’re not familiar with the companies and culture, but you also don’t want to be as diversified as an ETF. I suggest doing some research using traditional metrics and finding a nice basket of cheap stocks that you would be comfortable being in. That way, if you miss on a few of them, you’ll be okay.

If you use a discount broker or if your broker doesn’t give you access to overseas stocks, I’ve compiled a list of Japanese stocks with American ADRs. These ADRs trade on the New York Stock Exchange and the Nasdaq, so you should have no problem making trades even if your broker is as vanilla as they come. If you’re a real virgin and don’t know what an ADR is, it stands for American Depository Receipt and represents ownership in the shares of a non-U.S. company, but which trades on a U.S. exchange. An ADR is issued by a U.S. depository bank, trades just like a U.S. stock, and can be exchanged with the actual stock of the foreign corporation.

Here is the list of the 21 Japanese ADRs. Use this list to begin your research, and if you do have the ability to trade on foreign markets, you’ll probably be able to find some bigger bargains there. To help you drill down a bit quicker, I’ve listed any guru ownership after the stock name.

Advantest (ATE): Jim Simons owns shares

Canon (CAJ): Steven Cohen, Pioneer Investments, Ken Fisher, Ron Baron, Charles Brandes, and Jim Simons own shares.

Hitachi (HIT): Mario Gabelli and Jim Simons own shares

Honda (HMC): Bruce Kovner, Pioneer Investments, Charles Brandes, Tweedy Brown, Dodge & Cox, Ken Fisher, Steven Cohen, Jim Simons, and Sarah Ketterer own shares.

Internet Initiative Japan (IIJI): Jim Simons owns shares.

Konami (KNM): No gurus own shares.

Kubota (KUB): Jim Simons owns shares.

Kyocera (KYO): Jim Simons and Mario Gabelli own shares.

Makita (MKTAY): Ken Fisher and Charles Brandes own shares.

Mitsubishi UFJ Financial (MTU): Ken Fisher, Charles Brandes, Bruce Kovner, and Sarah Ketterer own shares.

Mistui (MITSY): Jim Simons and Ken Fisher own shares.

Mizuho Financial (MFG): David Dreman, Charles Brandes, and Jim Simons own shares.

Nidec (NJ): Jim Simons previously held shares, but currently does not.

Mizuho Financial (NTT): John Buckingham, David Dreman, Mario Gabelli, Charles Brandes, and Jim Simons owns shares.

Nomura (NMR): Steven Cohen, David Dreman, Ken Fisher, and Jim Simons own shares.

NTT DOCOMO (DCM): Jim Simons and Manning & Napier Advisors own shares.

Orix (IX): Jim Simons owns shares.

Panasonic (PC): Ken Fisher, Dodge & Cox, and Jim Simons own shares.

Sony (SNE): Louis Moore Bacon, Mario Gabelli, Jean-Marie Eveillard, Ken Fisher, Primecap Management, Dodge & Cox, Charles Brandes, Steven Cohen, and Jim Simons own shares.

Toyota Motor (TM): Bruce Kovner, Charles Brandes, John Rogers, Jim Simons, and Steven Cohen own shares.

Wacoal (WACLY): Jim Simons owns shares.

The Purchase Price

Disclosure: Long TM

About the author:

Steven Kiel
Steven Kiel is the president and chief investment officer for Arquitos Capital Management, a Virginia-based investment management firm. He is a graduate of George Mason School of Law and a captain in the Army Reserves. He manages two spoke funds, The Freedom Fund, a value-oriented portfolio, and The Hayek Fund, a portfolio dedicated to free market principles. He can be contacted at steven.kiel@arquitos.com or through the firm's website at www.arquitos.com.

Visit Steven Kiel's Website


Rating: 4.1/5 (15 votes)

Comments

mla
Mla - 3 years ago
Have Japanese stocks really been hammered that much? The EWJ is only down like %15 and back to Sept. 2010 levels. Or is that largely due to the strengthening Yen?

Alex Garcia
Alex Garcia premium member - 3 years ago
Wow Jim Simons owns just about everything
schn1eck7
Schn1eck7 - 3 years ago
None of these are any good. The gurus will be fooled by this Japanese market.. the ADR list is pretty terrible. I'd much rather own some of the really unfollowed companies. Take a hard look through the equity lists & you'll find a few much better opportunities.

Take a look at 10-year historical returns on this ADR list in 2021. You'll see what I'm talking about.

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