We Study Billionaires - The Investor’s Podcast Network TIP565: Why Buffett is Doubling Down on Japan w/ Dan Rasmussen
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Jul 16, 2023 
Dan Rasmussen, Founder and Portfolio Manager of Verdad, shares his contrarian perspective on Japan's undervalued stock market. He argues that Japanese equities present some of the best valuations globally, contrasting them with overvalued US stocks. The discussion includes Japan's recent economic evolution, the impact of yield curve control, and how rising interest rates are shaping corporate earnings. Rasmussen also touches on financial literacy and emerging technologies, urging investors to reconsider opportunities beyond conventional markets.
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Meta-Analysis in Investing
- Investing is about meta-analysis: your views relative to the market's.
- Investable opportunities are where you disagree with consensus.
US vs International Valuations
- US equities are overvalued compared to international stocks, driven by narratives and recent US market success.
- This consensus pushes US valuations higher, potentially lowering future returns.
Growth vs Value Stocks
- Growth stocks are historically overvalued relative to value stocks, primarily due to unpredictable growth patterns.
- Betting against market extremes in valuations, like overvalued growth stocks, is a prudent long-term strategy.