Murakami's Arrest Creates Buying Opportunity in Japan (EWJ, ITF)

The headlines coming out of Japan about the arrest of Yoshiaki Murakami on insider trading charges may sound ominous to American ears in light of the scandals that we’ve been through in this country.

Please don’t fall for this. It is an interesting story, but it is a sideshow, just like the Livedoor scandal that came and went a few months ago. This is not Enron or Eliot Spitzer-caliber material and none of it has anything to do with the fundamental investment case for Japan. Any sell-off as a result of this non-story is simply a great buying opportunity.

Murakami’s demise is unfortunate. Steven Towns nails it:

Murakami has done a lot for Japanese shareholders and it will be hard to replace the outspoken capitalist that wasn’t afraid of making money but slipped up in a stupid deal.

I believe Murakami can–and will–be replaced. The activism cat is out of the bag in Japan and it just needs a bigger and better evangelist.

Carl, are you ready yet? Call me–let’s go make some money!!