About this episode

Mike and Emmet explore overlooked growth stocks in Japan, highlighting companies like Sanrio and Smaregi.

This week, Mike and Emmet head to Japan in search of overlooked growth stocks. Japan is home to some of the world's oldest businesses, with more than 140 companies claiming histories of over 500 years. Many of them have survived by following two simple rules: hold plenty of cash and avoid debt. But after decades of economic stagnation, a new wave of corporate reforms is pushing Japanese businesses to become more growth-oriented and shareholder-friendly. To uncover some of the market's most promising opportunities, Emmet screens the entire Japanese stock market for companies with market caps below $20 billion, strong returns on equity, high returns on invested capital, and rapidly accelerating revenue growth. One company that stands out is Sanrio (8136.T) , the owner of some of Japan's most recognizable intellectual property. Despite growing revenue at an impressive pace in recent years, its valuation has actually become cheaper relative to its historical averages—a combination investors rarely get to see. Mike then pitches his favorite company of the bunch: Smaregi (4431.T) , a fast-growing software business often described as Japan's answer to Square. While countries like China…

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