Japanese Stock God's Wealth Code: The Rational Path from 70 Yen to 20 Billion

He created a myth of 20 billion yen in the market with only 70 yen borrowed from his wife. What did this Japanese stock god rely on to repeatedly achieve success in the unpredictable stock market? Even more thought-provoking is that he later lost 30 billion in profits by greedily taking one more bite, watching as his gains vanished before his eyes. This is the investment life of Kawashiro Ginzō—a story about the duel between rationality and greed.

The Self-Discipline Path of a Poverty-Stricken Youth

Before turning 31, Kawashiro Ginzō’s life was far from smooth. During the era of World War I, he traveled extensively—doing business in China, working as an accountant in London, engaging in currency melting and trading, even making a fortune at one point. But investment failures became a turning point in his life, and he returned to Japan in disgrace, bearing the lessons of his failures.

The turning point came the moment he decided to “change his fate with knowledge.” At 31, Kawashiro entered the Osaka Library and began three years of intense study. He immersed himself in economics texts, trying to develop a set of investment principles that could lead to success. In 1931, when he finally entered the stock market with only 70 yen borrowed from his wife, he was no longer the reckless businessman—he had become an investor armed with “knowledge as his weapon.”

From then on, Kawashiro developed a persistent habit: collecting data daily, studying market trends, communicating with securities firms, and striving for a comprehensive understanding of the market. This daily routine of fundamental skills ultimately forged the birth of Japan’s stock god.

Three Legendary Investments Demonstrating Market Insight

At the end of World War II, Kawashiro made his first bold decision—massively buying galvanized iron. He predicted that in the fall and winter, people would build iron sheet houses as shelters. His judgment proved impeccable, and the price of galvanized iron soared dozens of times.

In the early 1970s, when the international oil crisis severely impacted Japan’s economy and the cement industry declined, the stock price of Japan’s largest cement company fell from over 800 yen to around 100 yen. This was a crash—and an opportunity. Kawashiro keenly perceived that the government would initiate infrastructure projects to address unemployment. He bought large quantities of Japan Cement stocks, and three years later, reaped a profit of 30 billion yen.

In the 1980s, a news report about “Rising Mine Potential for High-Quality Gold” caught Kawashiro’s attention. He began extensive investigation and research, eventually convinced that it was a gold mine with astonishing potential value. Coincidentally, even the owner of the mine, Sumitomo Metal Mining, was unaware of its true worth. Kawashiro quietly positioned himself to buy in, and when survey data confirmed his judgment, the stock price skyrocketed to more than nine times his purchase price. This investment again brought him 20 billion yen and made him the top individual earner that year.

The “Eight-Point Satisfaction” Philosophy: The Secret to Avoiding Market Tops

But what truly set Japan’s stock god apart was not just his stock-picking eye but his ability to exit the market precisely before the frenzy.

Take Sumitomo Metal Mining as an example. When the market pushed the stock price higher, Kawashiro went against the trend, quickly selling his holdings. Astonishingly, just three weeks later, the stock price plummeted to a third of his selling price. This was not luck but the result of his original “Eight-Point Satisfaction” principle.

Kawashiro compared selling stocks to eating: “Only eating to eight-tenths full is the realm of wisdom.”

In his view, the most difficult timing in the stock market is not when to buy but when to sell. The market changes rapidly, and optimism is like an illusion, most easily triggering greed. When stock prices surge and everyone screams “it will go higher,” Japan’s stock god proactively curtails expectations, controls desires, and exits early. He may not have sold at the absolute peak, but he avoided the subsequent crash—this is the core of his repeated success in high-risk cyclical industries.

How the Tortoise’s Three Principles Defeat Market Greed

Besides the “Eight-Point Satisfaction,” Kawashiro also created a set of “Tortoise’s Three Principles” investment philosophy, advocating that investing should be like the tortoise in the race—steady and persistent to win in the end:

First, identify potential stocks. Choose stocks with promising prospects that are yet undiscovered by the public, and hold them patiently for the long term. This tests insight and patience.

Second, conduct independent research. Keep a daily close watch on the economy and market trends, and insist on “doing your own homework.” He never blindly trusts optimistic news from newspapers or magazines—because by the time the news hits, the stock price is usually near its high. He personally gathers information rather than relying on others’ words.

Third, eliminate over-optimism. Do not believe that the stock market only rises and never falls. Use only your own funds for operations—no margin trading, no leverage. This principle sounds simple but is a nightmare for many investors.

The Painful Lesson of a 30 Billion Yen Loss

However, even Japan’s stock god was ultimately human.

In the late 1970s, international prices of non-ferrous metals surged. Kawashiro judged that the Soviet invasion of Afghanistan would further accelerate the rise, so he heavily bought related stocks. As the market heated up and profits ballooned, Kawashiro, in a rare loss of composure, lost his cool. Driven by greed, he refused to sell, trying to squeeze out the last bit.

The result was a series of sharp declines in stock prices, and his 30 billion yen profit turned into nothing—only “paper wealth” remained.

This disastrous failure was a huge irony—it completely violated his early “Eight-Point Satisfaction” wisdom and proved a cruel truth: knowing the right method and actually executing it are separated by an invisible wall called human nature.

The Eternal Dilemma of Rationality and Greed

Kawashiro Ginzō’s legendary life tells a story: knowledge can be learned, experience can be accumulated, but the hardest thing to control is always the beast called “greed” deep in human hearts.

From 70 yen to 20 billion yen, Kawashiro proved the power of rationality and discipline. From losing 30 billion, he warned how greed can devour everything. The most valuable legacy of this Japanese stock god is not the numbers but the life lessons he forged—his timeless motto: Invest rationally, exit calmly.

Next time you face market madness, ask yourself: Am I “eating to eight-tenths full,” or am I trying to “take the last bite”?