Apr 2019


What, really? This was a sad article to read from a few weeks back. Daiwa House, Japan’s largest homebuilder has got it wrong in a big way.

News came out that of a suspected US$211 million embezzlement by three employees at Daiwa’s joint venture company based in China. The case goes back to 2015, which in itself is incredible. Daiwa have already decided to write off half of the missing money as it investigates criminal proceedings.

What does this have to do with you and me? Small to midsize investors moving ahead but not quite at the point where we can invest US$211 million! Well as investors, we know that investing alone is lonely and slow. Have a joint venture partner or partners that are on the same path is motivating and fun. However, you must know the person you are investing with, do your due diligence on the property, your joint venture partner and the figures involved. If any of these do not work out, step back and step away if necessary.

Over the years JPI has turned people away because the fit was not good. Perhaps they couldn’t afford the investment or had unrealistic ideas about how the investment would go. Both sides have to be comfortable when investing together. Being honest now save pain later and may mean that when circumstances change, the investment partnership can flourish.

Good luck with the investigation Daiwa, of course your war chest of coins will survive but “Ouch” and don’t forget the due diligence in the future!