We received a very interesting question about Jitta’s vision and the effect of the increased amount of users of Jitta, so I’d like to casually address them in this post.
Actually, our team has always been discussing these issues, about our vision, mission, and what will happen to the world of investment if we have increasing users. Nobody really knows what will happen in the future, but as of now, we can see that Jitta’s entrance has altered the field of investment quite a bit.
Especially increasing investors’ awareness of Warren Buffet’s investment philosophies, and the fact that some investors have actually admitted to getting bitten in the butt by new technologies -how the new-generation investors have made use of these technologies like Jitta to analyze data that would have taken ten years to go through in the past.
(Although us new-generation cannot match the mature investors in experience, we are still able to understand and choose the same good and inexpensive stocks, in addition to being emotionally stable when we see stock prices dive, while the fundamentals are still strong. We have frameworks and plans to manage our investments effectively as well)
This is a fun and exciting time for us as well -to see and wait on the edge of our seats of how Jitta will grow and how it will affect the world of investment. I imagine it’s probably the same feeling teams such as Google and Facebook experience in their beginning stages… how will their creations change the world?
Another challenging statement is this: “Silicon Valley has changed the world but not yet Wall Street.” Of course, our challenge and our dream is to see how Jitta can change the stock markets in the world.
After starting operations for a year or so, and talking to many users, we have established these mindsets:
1. Jitta’s Mission
Jitta was created under the perspective that investing is not a difficult task, and it shouldn’t be something we should constantly be busy with. The reason people are so busy and fixated is because the stock market contains so many factors that create these issues.
So if this world didn’t have a stock market, the investing in businesses must revert back to the basics of analyzing the information, the asset’s quality, and only invest when we are sure that we are investing in a good asset for a lower price that it should have.
This simple mindset is enough to build your wealth if you truly understand and know how to apply it.
Therefore, the main mission of Jitta is to help investors create good returns through simple methods.
What we emphasize is simplicity -because there really is no use for yet another method that is difficult to use. There are plenty of those already.
Saving investors’ time is part of the simplicity that we talk about, because presently, many Jitta users use Jitta to quickly screen for stocks, and then later go read the financial statements and other information in further detail.
2. Jitta’s Vision
Our vision for Jitta is to become a standard for investment in the world. We envision that one day, the many figures on Jitta, such as Jitta Score, Jitta Line, and others will be figures that investors use as references, standards, and to apply to their own investments.
For example, the Dow Jones index which is used as a reference to the stock market movements; even though the person who came up with it is no longer on this earth, the Dow Jones index appears on the news every day.
Also, we can see that there are many technical figures that are used and widely accepted by investors, such as MACD, EMA, RSI, and Fibo, while there are no such figures used in the field of VI (widely accepted ones, that is). Because analyzing companies is quite a complicated task that requires studying many financial figures, and constantly updating them from the financial statements each trimester, making it very difficult for anyone to compile such figures for every company and create a standard.
Therefore, in the future, Jitta’s would like to grow in this direction; gradually teach people the basics and approach to use our figures (Jitta’s Score, Jitta’s Line, Jitta’s Factor, Jitta’s Signs, etc.) and adapt them to their own investing methods, and refer to these values as something everyone will understand (for example, if you say that this stock has a Jitta Score of 8, then people will understand immediately that this is a good company).
In addition, we aim to gradually increase the number of stocks from different countries, because one of the advantages of Jitta’s is that we can easily apply our standardized figures and calculations to stocks in other countries. For example, if we added stocks listed in Japan to our system, you can easily see which ones are attractive and which companies are eye great companies. If you visit the Factsheet, you will also know which figures to look at and where, because it would be in the same format.
Once we are able to accomplish this, Jitta’s will become the standard and reference that everyone in the world uses and understands, which is a very challenging task that might need tens of years to achieve. But when that day comes, we will surely be extremely happy that we took parts in creating and helping share Jitta’s around the world.
And the most important part of our vision is to know that Jitta’s will still be there to help investors for, even if all of us are long gone. We believe that it is a beautiful thing to create something of value for our predecessors, our children, to the people who come after us.
3. Using Jitta
From our mission and vision, you will know that Jitta’s aims to let people apply our different values and figures as a reference to their own investment styles to make their investments easier and yield better returns.
How you use Jitta is up to you. Some might invest according to the Jitta Ranking, some might use Jitta to scan for stocks and then study them in detail again later, some might use it to assess the risk in each stock and then use other technical methods to determine when to buy/sell, or some might use Jitta when investing in turnaround stocks.
The good part is, no matter which way you use Jitta to make profits, you can always learn from it and use it as a standard in investing, enabling you to repeat and scale your investments continuously.
4. Main users of Jitta
If you look at our mission and vision, you will know that any investor can use and adapt our system to their own investment style and experience. We do not limit our target to any specific group.
Speaking of experience, for those who do not have any prior investing experience can also use Jitta to study investing further, and to minimize the chances of losing money from investing in the first time round.
For others who have been in the market for quite some time, Jitta can serve as a reference and as a filter for stocks, and a quick indicator of quality and value, so that investors can quickly filter stocks and study more deeply in detail later.
And for the investors with vast experience in the field, Jitta’s can help you expand your investment territory in other markets outside of your countries, and allow you to view data in the same format with any market in the world.
5. Investing based on Jitta Ranking
Actually, Jitta Ranking was created to prove that the Jitta Score and Jitta Line were methodologically created and are really applicable in investment. Because by just simply investing in the Top 5 Jitta Rankers under the simplest method of buying and selling once per year, we can beat the market’s return.
But the real strategy that we recommend in using Jitta is the investment principle of Warren Buffet: investing in good businesses at reasonable prices, as written in Invest with Jitta.
From what we found, many investors have used Jitta in referencing and filtering stocks and then deciding for themselves rather than following the Jitta Top Rankers alone. Many have had better returns, because the method we show with Jitta Ranking is the easiest, simplest method: buying and selling every 12 months (actual,y if you buy and sell every 6 months, you would get even better returns because you can get rid of stocks whose statements aren’t so great. The reason that we don’t do this is because our purpose was just to prove that we can beat the market with even the simplest method, not to yield higher returns with the cost of complications)
But for those who want to invest based on just the Jitta Ranking, I still believe that you can get good returns that beat the market in the same period of time.
The key is “in the same period of time,” because based on the Jitta Ranking, you’d need to hold the stocks for 12 months and then sell, and so to compare, you’d have to compare results with the market index during that same period. And from what we have proven, we found that no matter at which point in time, investing in her Jitta Top Rankers, and trading every 12 months, the returns always beat the market.
This is because Jitta clearly distinguishes quality stocks and their values so that we can easily decide; and the Jitta Ranking changes every day depending on the fluctuating stock prices, as the higher the prices rise, the less attractive those stocks become.
This makes it almost impossible for the people who use the Top 5 Jitta Ranking to invest to buy the same stocks everyday, because if today there are many who buy stocks A, B, C, D, E, tomorrow these stocks would be pushed from the Top 5 while other stocks would replace them in ranks.
Therefore, the Jitta Ranking at any point in time is the ranking of stocks at that moment, making the Top 5 Rankers stocks that are most attractive to invest in (calculated from the quality and value compared to their prices). So holding them for 12 months will surely yield better returns than the index, which includes tons of other ill-performing stocks during the same period.
And another layer of protection is this: if so many people buy A, B, C, D, E, until their prices are driven up too highly, there won’t be too many who will buy them after that surely, , thus minimizing the chance of making a loss and so returns would still be higher than the market in the same period.
This method is different from the other existing ones where they tell you to buy a list of stocks, without any explanation for investors to analyze and decide, and without knowing whether the list they received is updated or not, whether the prices are now too high. The later comers would then have high chances of losing profits and decreasing their returns.
6. What will happen when many people use Jitta
In terms of return from investing based on Jitta Top Ranking, we don’t think there will be a problem with beating the market, as explained earlier.
For those who decide to invest on their own while applying Jitta’s information to their methods, success really depends on personal skill and the chosen methods. But the main takeaway would be that most investors (and their capital) in the world have great confidence in Jitta.
What this will bring about is the “ideal world of investment.” It will be as though there are no stock markets. The gap between the stock price and the company value would become much narrower, and the stock prices will always fall close to the Jitta Line.
This will decrease the chances of profiting through speculation, and eliminate insider trading because nobody would go buy the stocks whose prices exceed the suitable value by much. Investing would be much more reasonable and everyone would invest with the perspective of investing in good businesses, letting their port grow with these companies.
The hassle and time spent with the stock market would decrease, and everyone would have more time to spend on doing the things they love, while also building their wealth.
This is what we Jitta folks hope to have happened, but in reality, it will probably be too difficult because there is no way that everyone will adopt Jitta, and even if they do, greed and fear from various news and information that different people receive will make them decide differently in the short run.
But anyhow, in the long run, we believe that Jitta will bring stock prices closer to the suitable values much faster than in the past (just like the way the Internet and Excel have sped up our information and analysis process).
7. Zero to One
Lastly, we would like to define Jitta as a “Zero to One” entity, which means that it is something that has never existed before in this world, and so I believe that it will gradually grow and evolve with its users. And one day, the world (users) will be the one that dictates how Jitta is being used, just like the different ways in which we use Google, Facebook, and YouTube according to our own needs.
Having said all this, we still don’t know what will happen in the future, how much change Jitta will bring about, or what will happen to Jitta’s capacity when the large public adopts it… These are things that only time will tell.
The thing that we do know, is this: every day we are happy to know that we are creating something that helps and benefit others, and we have fun in developing and waiting to see which direction Jitta will be headed, and the changes that it will bring about.