When I first started NISA, I only purchased mutual funds.
I would steadily accumulate mutual funds tracking the S&P 500 or global stocks every month.
I thought that if I wanted to think about long-term asset formation, I should start by continuing with mutual funds.
The trigger for me becoming interested in individual stocks was shareholder benefits.
From there, as I looked at various stocks, I also began to take an interest in high-dividend stocks.
This time, I would like to write about my experience of coming to enjoy individual stocks while keeping mutual funds as my main focus.
The trigger for becoming interested in individual stocks was shareholder benefits
The biggest trigger for becoming interested in individual stocks was shareholder benefits.
By owning shares, I could receive benefits from my favorite stores.
And, I could use those benefits to actually go to the stores and enjoy meals or shopping.
I felt the appeal not only in receiving advantageous services but also in being able to support my favorite stores as a shareholder.
I can support stores I use regularly and companies I want to see continue for a long time.
I realized that there is such a way to enjoy investing.
The first ones I purchased were Komeda and ENEOS
One of the first individual stocks I purchased was Komeda Holdings.
The reason I chose Komeda was not only because I wanted the shareholder benefits, but also because I felt the appeal of the store itself.
The menu is extensive, and it is used by a wide range of people.
And, I also became interested in their franchise system.
It was impressive that the system was designed with consideration for franchise owners, rather than just focusing on store turnover rates.
Learning that the system also has benefits for franchise owners, I felt the appeal there as well.
Perhaps it is because there are benefits for the side operating the stores that they can continue to be stores that are loved for a long time.
Thinking about that, it became one of the companies I want to support.
Another one I purchased for the first time was ENEOS Holdings.
I did not purchase this for the purpose of shareholder benefits.
It was a company I felt close to, as I use it for my own car on a daily basis and often have opportunities to use it for work vehicles as well.
Also, at the time, I felt the stock price was reasonably priced.
Energy such as oil is indispensable to our lives.
Therefore, I thought that demand would not drop significantly, and I became interested.
Of course, in reality, a company’s performance and stock price fluctuate depending on crude oil prices, exchange rates, and the global situation.
This was just my own thinking at the time of purchase, but I wanted to try investing in a company that is familiar and needed.
Diversifying industries little by little with fractional shares
After I started individual stocks, the next thing I began to think about was diversifying my investments.
At first, I was buying in units of 100 shares, but if you try to invest in multiple companies, you need a considerable amount of funds.
In particular, if you try to buy 100 shares each of companies in various industries, it becomes a significant amount of money.
I personally want to keep investment trusts as the main focus of my asset formation.
I don’t want to concentrate a large amount of funds in individual stocks, but rather continue while enjoying it within a reasonable range.
That is why I started utilizing fractional shares.
Since you can purchase from small units such as one share, you can invest in multiple companies even without a large amount of funds.
It was also attractive that I could increase my holdings little by little while diversifying industries.
Also, it is not always the case that the stock prices of all companies will perform well at the same time.
That is why I would like to invest little by little, separating the companies and the timing of purchases, rather than buying them all at once.
Of course, even if you diversify stocks and industries, it does not mean that the risk of stock prices falling will disappear.
Even so, as a result of thinking about a method that I can continue without strain, I have settled on my current investment style.
Dividends are now one of the things I look forward to
When I first started individual stocks, my interest was mainly in shareholder perks, but now I have also started high-dividend stock investing, and dividends have become one of the things I look forward to.
Receiving dividends from companies I hold stock in is a pleasant experience, even if the amount is small.
By holding small amounts of multiple companies through fractional shares, I also enjoy the pleasure of receiving dividends from each of them.
The joy of going to my favorite shops using shareholder perks.
The joy of receiving dividends.
And the joy of researching companies myself and supporting the ones I have chosen with conviction.
By starting individual stocks, I realized there is a fun aspect that I couldn’t feel just by accumulating mutual funds.
Making mutual funds the main focus while finding my own way to enjoy it
For me, mutual funds and individual stocks have slightly different roles.
Mutual funds are for steadily growing assets for the future.
Individual stocks are for supporting companies and enjoying shareholder perks and dividends.
It is not a matter of which is better, but rather using them differently according to my own goals.
Individual stocks carry risks such as stock price declines and dividend cuts, and they do not guarantee a profit.
That is precisely why I want to continue investing with amounts I can afford, while researching companies and making investments I am comfortable with.
I started individual stocks because I was attracted to shareholder perks, but now dividends and researching companies have also become part of the fun.
Building on a foundation of mutual funds while enjoying individual stocks little by little.
I want to continue to value an investment style that suits me.