The Nikkei 225 is booming. Learn how to invest in Japanese stocks like Toyota, Sony, and Nintendo from the US, Europe, or anywhere else.

Warren Buffett is buying Japanese stocks. Should you? With the Yen being weak, Japanese stocks are "on sale" for foreign investors. Here is how to invest in Japanese stocks from overseas.

Method 1: ADRs (American Depositary Receipts)

If you are in the US, this is the easiest way.

• What are they? Certificates that represent shares of a foreign stock. You buy them on the NYSE or NASDAQ just like Apple or Tesla.
• Examples: Sony (SONY), Toyota (TM), Honda (HMC).
• Pros: Easy, no currency conversion needed.
• Cons: Limited selection (only big companies).

Method 2: Global Brokerages

Interactive Brokers (IBKR) is the king here.

• How it works: Open an account, convert your currency to JPY within the app, and buy stocks directly on the Tokyo Stock Exchange (TSE).
• Pros: Access to ALL Japanese stocks (even small ones).
• Cons: Slightly more complex interface.

Method 3: ETFs (Exchange Traded Funds)

Don't want to pick individual stocks? Buy the whole market.

• EWJ (iShares MSCI Japan ETF): The most popular Japan ETF.
• DXJ (WisdomTree Japan Hedged Equity): Good if you want to hedge against currency fluctuations.

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Risks to Watch

• Currency Risk: If the Yen gets stronger, your returns go up (in USD terms). If the Yen gets weaker, your returns go down.
• Taxes: Japan withholds 15.315% tax on dividends. You may be able to claim this back depending on your country's tax treaty.