The Great Purge: A Complete Audit of My 2025 Portfolio

From 14 stocks down to 10. A transparent look at what I’m selling, what I’m keeping, and how I’m rebalancing for the next phase of the Japanese bull market.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. I may hold positions in some of the securities mentioned. Please do your own research and invest at your own risk.

It feels strange to complain about making money. As I sit in Hibiya, looking out over the Christmas illuminations surrounding Tokyo Station, the Nikkei 225 has just reached the 50,000 mark, an unprecedented all-time high.

Since 2020, I have maxed out my Japanese NISA allowance every single year, scaling from the old limits to the new 3.6 million yen cap. While this constant influx of fresh cash naturally dilutes the headline percentage, the underlying engine is massive: my holdings from the 2020–2023 cycle have generated a +114.1% total return. This confirms that my deep-value strategy is compounding at a rate that significantly outstrips the market, creating a Money-Weighted Return (MWR) that beats the Nikkei 225 by roughly 5 percentage points annually.

The Problem: Portfolio Bloat

When everything looks cheap, you buy everything: “Oh, a fire truck monopoly at 8x earnings? I’ll take it.” “A train manufacturer trading at 0.3x book? Why not.” “The creator of Sonic the Hedgehog for <P/E 10x? Essential.”

Even after selling some positions this year, I still hold 14 stocks.

I am now suffering from what Peter Lynch called “diworsification.” Furthermore, the KonichiValue philosophy is about ownership. You cannot effectively own, monitor, and steward fourteen different businesses while working a day job.

Therefore, I am initiating The Great Purge.

Every single holding has been audited against the Five Pillars of KonichiValue:

1. The Narrative (物語) 📜: Is the macro-story intact? Does the company have the wind at its back (inflation, labor shortage, tourism)?

2. The Castle (城) 🏯: Does it have a moat? Is it a price-maker or a price-taker?

3. The Shogun (将軍) ⚔️: Is the leadership aligned capital allocators fighting for shareholders, or salarymen bureaucrats guarding a fortress of hoarded cash?

4. The Foundation (石垣) 🪨: Valuation, Piotroski F-Score, Balance Sheet health.

5. The Verdict (目利き) ⚖️: Keep or Kill.

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The Stocks I’ll Keep