Over the past decade, the growth of passive investing has made it easier to overlook company fundamentals, as investors increasingly focus on markets rather than businesses.
At BLI, we take a different path. We invest in companies, not indexes. We look for businesses with clear strategies, strong cash flow generation, and enduring competitive advantages—whether derived from technological expertise, customer loyalty, network effects, cost leadership, or great brands. We focus on disciplined valuation and let time do the compounding. As Warren Buffett reminds us, “Time is the friend of the wonderful business, the enemy of the mediocre.”
This article is written first and foremost for investors in our Japanese equity fund—but also for anyone curious about how we invest and what we believe in. It’s about understanding the businesses in your portfolio and the key elements that drive each investment decision. Investing isn’t about lines on a screen; it’s about real companies creating the products and services people rely on every day.
You’re likely using products from your Japanese investments without even realizing it. Your smartphone, for instance, was assembled by Japanese automation equipment and runs on chips made with Japanese semiconductor technology. Other portfolio businesses come into view when you visit a hospital and see diagnostic devices, ride a bicycle, watch your kids play video games, notice contractors using power tools and machinery, or add a splash of soy sauce to your meal. These aren’t abstract investments—they’re real businesses generating real returns.
Read the series of 4 articles edited by Steve Glod, fund manager BL Equities Japan at BLI - Banque de Luxembourg Investments:
- Your Investment Soundtrack: The Companies Behind BL Equities Japan – Part 1
- Your Investment Soundtrack: The Companies Behind BL Equities Japan – Part 2
- Your Investment Soundtrack: The Companies Behind BL Equities Japan – Part 3
- Your Investment Soundtrack: The Companies Behind BL Equities Japan – Part 4