value investing and corporate change…
One of the basic tenets of value investing in the US is that when a company is performing badly, one of two favorable events will occur: either the board of directors will make changes to improve results; or if the board is unwilling or incapable of doing so, a third party will seize control and force improvements to be made.
…hasn’t worked in Japan
Not so in Japan, as many Westerners have learned to their sorrow over the thirty years I have been watching the Japanese economy/market.
Two reasons for this:
—culturally it’s abhorrent for any person of low status (e.g., a younger person, a woman or a foreigner) to interfere in any way with–or even to comment less than 100% favorably on–a person of high status. So change from within isn’t a real possibility.
–in the early 1990s, as the sun was setting…
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