PresentationKeita IshiiPresident, COO, Chief Strategy Officer & Representative Director Good morning, everyone. I am President Ishii. Thank you very much for joining us today. I will explain 3 highlights from our first half business results announcement, solid earnings progress, dividend increase and share split. Please refer to Page 2 of the FY 2025 first half business results summary presentation materials released on November 5. The first point is the progress of financial results for FY 2025. Consolidat ...

Group 1: Stock Recommendations - Reynolds Consumer Products Inc. (REYN) has a Zacks Rank 1 and a dividend yield of 3.8%, with a 3.2% increase in the current year earnings estimate over the last 60 days [1] - Mitsui & Co., Ltd. (MITSY) also holds a Zacks Rank 1, showing a 3.6% increase in the current year earnings estimate over the last 60 days, and has a dividend yield of 2.6% [2] - Alpine Income Property Trust, Inc. (PINE) is a real estate investment trust with a Zacks Rank 1, experiencing a 1.7% increase in the current year earnings estimate over the last 60 days [2] Group 2: Industry Comparisons - The dividend yield of Reynolds Consumer Products Inc. (3.8%) significantly exceeds the industry average of 0.0% [1] - Mitsui & Co., Ltd. has a dividend yield of 2.6%, compared to the industry average of 1.1% [2] - Another Zacks Rank 1 company has a dividend yield of 7.8%, which is higher than the industry average of 4.8% [3]

Financial Performance - Deutsche Bank's US distressed trading desk earned approximately $200 million in profit during Q3 (ending September 30) [1]

Three of the worst businesses you can start today from a millionaire businessman. First, a clothing brand. The world really doesn't need any more of these.Second, an independent restaurant. Fewer people are eating out these days. And if you've ever seen Gordon Ramsay's Kitchen Nightmares, need I say more.First, day trading. Most people that teach this are scammers. ...

Market Share & Revenue - Jane Street、Citadel 等新兴公司目前占据全球交易收入的五分之一 (20%)[1] - 行业市场份额预计将在本十年末达到 30%[1]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Core Insights - Warren Buffett has invested over $400 million in two major Japanese trading houses, Mitsubishi and Mitsui, indicating a strategic focus on large, stable companies capable of absorbing significant capital [1][8][10] - The current investment landscape presents challenges for Buffett, as stock prices have risen faster than financial results, leading to high valuations, particularly in the S&P 500 [2][3] Investment Strategy - Buffett's investment strategy is centered around long-term holdings in companies with strong management and solid balance sheets, which aligns with his historical preference for maintaining investments indefinitely [6][11] - The recent investments in Mitsubishi and Mitsui are seen as opportunities to capitalize on attractive valuations, with Mitsubishi trading below 1.5 times book value and Mitsui even lower at around 1.25 times [10][12] Company Characteristics - The five major Japanese trading houses, including Mitsubishi and Mitsui, are characterized by their diversified operations across various industries, strong financial health, and a conservative approach to returning capital to shareholders [11][12] - These companies typically reinvest a significant portion of their earnings into business growth rather than issuing new shares or paying high dividends, making them appealing to Buffett [12][13] Future Outlook - Buffett anticipates that his successor, Greg Abel, will continue to work productively with these trading houses, suggesting a long-term partnership and potential for further investments [13] - Berkshire Hathaway has received permission to exceed the 10% ownership threshold in these companies, indicating a willingness to deepen its investment positions as opportunities arise [13]

Core Insights - High-speed trading firms in India are significantly increasing entry-level salaries despite regulatory scrutiny in the equity derivatives market [1][3][5] Salary Trends - IMC Trading BV has raised intern salaries to 1.25 million rupees per month ($14,182), a threefold increase from 2024 [2] - Quadeye has increased entry-level pay to 750,000 rupees, a 50% rise from the previous year [2] - The average annual base pay for Indian finance professionals is approximately 700,000 rupees [2] Market Dynamics - Despite a 40% decline in derivatives trading due to increased regulations aimed at protecting retail investors, the potential for gains in the equity derivatives market remains high [3] - Foreign funds and proprietary trading desks generated $7 billion in gross profits in the year ending March 2024 [3] Demand for Talent - There is a strong demand for skilled traders, with frequent inquiries for new trading desks and intense competition for top-tier talent in India [4] - Companies are actively seeking quant researchers and trading system engineers to enhance their trading capabilities [4] Regulatory Environment - The Securities and Exchange Board of India (SEBI) is increasing scrutiny of the market, particularly following allegations against Jane Street Group LLC regarding market manipulation [5][6] - Jane Street has disputed SEBI's findings and is seeking to overturn a temporary ban from the Indian market [6][7] Client Sentiment - While recent regulatory actions have made some potential clients cautious, there remains a steady interest from companies looking to enter the high-speed trading segment [7]

Group 1 - eToro Group Ltd. is recognized as a promising stock with significant upside potential, despite a recent price target reduction by Citi analyst Christopher Allen from $62 to $57, maintaining a Neutral rating due to broader caution in retail trading [1][3] - In Q2 2025, eToro reported a 31% year-over-year increase in adjusted EBITDA, reaching $72 million, attributed to higher revenue and effective cost management, alongside a 14% increase in funded accounts to 3.63 million [2] - eToro has expanded its trading offerings by launching 24/5 trading for 100 US equities and increasing its US crypto assets to over 100, while also introducing AI-powered tools and portfolios, including an AI analyst named "Tori" [3] Group 2 - eToro operates a multi-asset trading platform that supports various asset classes, including equities, crypto assets, commodities, currencies, and options, allowing trading as both assets and derivatives [4]

Mergers and Acquisitions - Kraken acquires Breakout, a proprietary trading startup [1] Investment and Funding - Breakout backs traders with up to $200 thousand in capital [1]