We are very pleased to inform that Watanabe & Brother’s Investment announced 2022 Q2 financial results on October 6, 2022.
In this regard, our fund suffered a loss of 15% with respect to 2021 Q1 (JPY, YoY). We believe that it was due to further rising long-term interest rates as well as rising inflation rates in the U.S. and European markets. At the same time, we recorded a negative earning yield of -7% based on the total investment amount.
In this regard, our fund grew 2% on quarter over quarter basis with respect to 2022 Q1 (JPY, QoQ). Although it reflects the weaker Japanese Yen, the stock prices also appear to hit bottoms at the moment. We expect at least moderate recoveries of stock prices in near future.
In 2022 Q2, we purchased TDOC and NVTA while selling parts of holding shares of AAPL and MSFT. We believe that investment strategies of buying higher PER stocks while selling lower PER stocks under the higher volatility markets would be beneficial from medium to long term perspectives.
As for the European market, we concern its drastic rising of inflation rate. Due to such higher volatility, ADS.DE recorded a loss of 49% with respect to 2021 Q2 (EUR, YoY).
We will continue to purchase stocks in this higher volatility markets, and we believe that such action would bring the larger gains in near future.
Watanabe & Brother’s Investment will continue to invest in the U.S. and European markets from medium to long term perspectives based on the philosophy of ESG investment.