In today’s briefing:
- If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors

If Profits Cannot Grow, Tokyo Market Will Be Full of PE and Activist Investors
- There do not seem to be many companies that have executed large one-time dividends that have subsequently grown in corporate value.
- Now that the exit from deflationary economy is seen and profit margins have room to grow, the environment is conducive to investing in growth, and companies have opportunities to change.
- Limited profit growth is making it easier for market risk-taking investors to leave. Unless companies can grow profitably, Tokyo market will be full of private equity funds and activist investors.