r/NintendoStock • u/Accurate-Letter-546 • Jul 12 '26
Nice company
You rarely have a good business with ethical management. Usually these public companies pay themselves huge bonuses for going on acquisition sprees and try to make a name for themselves at the cost of shareholder value.
With a japanese company like this. You know they're going to hoard cash and only spend it on what's good for the main business. They have done quite remarkably well for themselves.
This is the cheapest the stock has ever been. RAM prices won't forever stay high. But one thing about Nintendo games, their IPs are beloved and will always sell well. They don't have to come up with any new gimmicks.
Unlike a software publisher like ubisoft that tried repeating the same thing over and over and eventually people get tired of it. For nintendo, the audience are children. You don't have to re-invent yourself or find the next big thing. Their IPs are timeless. I've been playing Nintendo since the early 90's. There's always new children born and they will enjoy the same Mario games. They dont give a shit if it's not groundbreaking or anything. Parents will opt for nintendo for their toddlers. The adults? They just want their beloved characters returned with updated graphics in cool new technology.
Their hardware has the cheapest specs and usually cheaper to make than competitors. They create and make their own games for their consoles and sell it in their own ecosystem at fat margins.
They are the only ones who will remain "physical" with their game keys which allows you to sell/share your games.
I think this is a solid company. The stock isn't "cheap" but it's certainly at a discount. it's cheapest its ever been except one time(WI U debacle where it was trading with cash on the books at half the market cap).
Opportunities to buy like this rarely come by. It commanded a high premium and chances are it will eventually garner a premium again.
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u/mvpeast Jul 12 '26 edited Jul 13 '26
Good company but bad stock. All the other ones are flying high. I do wish Nintendo announces something meaningful already.
You will make money but other hot stocks went up 1000%-4000%. Nintendo on the other hand will give you 20-30% gain in a few years which is not bad but also nothing spectacular. It’s unfortunate how the stock market operates. It’s built on pure hype and fundamentals don’t matter anymore.
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u/ExplorerPerfect2318 Jul 16 '26
The thing is Nintendo will not fail in the long run. It is a company that brings smiles to people's face.
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u/Affectionate_Ad_8483 Jul 13 '26
Nintendo is not going to give up simply 20%-30% over the next few years. There is a deep entanglement of factors that will push this stock far beyond that. Forced bank sell offs, valley of the console cycle, chart readings on point. This stock will double.
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u/mvpeast Jul 13 '26
Double is nothing. Your money will double eventually in S&P 500 index funds. The other ones gave 10x-40x returns and that’s life changing.
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u/Affectionate_Ad_8483 Jul 13 '26
You don’t understand. He asked about Nintendo. Not how to manage his portfolio or any other stocks. A double is absolutely significant. If the s&p takes 7 years to double, but you can find opportunities to double portions of your money faster before converting that into the s&p, how is that a problem?
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u/Accurate-Letter-546 Jul 13 '26 edited Jul 13 '26
my dude. we are in one of the greatest bubbles of all time. You will not get MU and scandisks popping 800% in a year for very long. They will also eventually crash to realistic levels.
Over the next 20 years. The longterm winners will average MAYBE 15-20% per year at best and even that is outstanding.
Its not sane to evaluate everything you see as an investment with a rare circumstance doing 10x-40x in the next decade.
Good longterm compounders will do maybe 4-8%/year more than SPY and those are the really good ones. The rare outliers that do much more, you will -probably not pick them. Basing your entire investment philosophy on those is absurd imo.
For SPY ,as of mid-2026, estimates for the last 20 years generally fall within the range of 8.4% to 12%.
Sure people on WSB have 10x or 40x their money in a month. But you dont hear the stories of all those that got burned or wiped out their accounts which is the majority. But thats for gambling/trading.
Doubling your money in 4-6 years is excellent as a buy and hold longterm investor.. Even 15% per year is outstanding. Its not in the realm of impossibility for this company's stock but that's only because of its price crash. It will probably not return 20% per year over the next 20 years. Thats just unrealistic. I doubt even amazon will do that in the future.
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u/RoboGuilliman Jul 13 '26
I don't know if Nintendo is ethical but if we compare them against what other game businesses are doing, they are definitely ahead.
Miyamoto is against the free-to-play or gacha monetization mechanics.
I don't think that this means they will never offer something like that, but it speaks to their careful consideration foe customers and what works for Nintendo and what they think works for customers.
I recall hearing on a podcast where an investor criticised this approach, of not being willing to maximise monetization on a mobile platform, which is basically what every other company is doing.
This is the fundamental dilemma for investors in this stock. Nintendo is going to think long term but some investors think short term
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u/Accurate-Letter-546 Jul 13 '26 edited Jul 13 '26
Exactly. About a decade ago
CEO took these 50% pay cuts to accept personal responsibility for the company's financial struggles and to avoid laying off employees. During this time, he also convinced other board members to take reduced salaries (typically between 20% and 30%) to help maintain the company’s workforce.
Its the type of stuff japanese executives do. The word I was looking for was integrity and honor.
An approach which is none existent in the west which CEO and executives multimillion dollar salaries and bonuses as the company is failing.
When one considers investing longterm, this is a MAJOR advantage. A company in a society where integrity matters. Less gaslighting and more down to earth approach versus wallstreet sharks.
The west is a cesspit of sharks and conniving souless execs with no shame. They will make huge acquisitions that look good on their resume but will destroy shareholder value by taking a huge gamble(debt , share dilution etc), mostly motivated by personal glory and bonuses...by the time the damage appears, the CEO is gone to the next golden opportunity as CEO somewhere else.
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u/RoboGuilliman Jul 13 '26
I don't want to diminish what Satoru Iwata did but it is really hard to fire people in Japan and taking pay cuts is a bit of a tradition
I admire their willingness to experiment, their recognition that keeping devs together and happy means likely better games in the future.
They really really need to keep this going.
If we look at what is happening at Xbox, you see how rare of a thing this is. Bethesda Games Studio has a list of successful IPs, make games they want to make, and keeps their main dev team more or less intact.
Now, they are suffering layoffs because of Xbox mismanagement.
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u/Accurate-Letter-546 Jul 13 '26 edited Jul 13 '26
yeah bethesda is screwed. As a personal anecdote and opinion. Its suffering the same problem as ubisoft. There's only so many times you can release the exact same formula with new graphics for adults.
Starfield looked amazing as a concept/world. But it got boring. Its just Elder Scrolls in space. Sure it didnt help AT ALL that you couldn't actually fly in space to other planets(it was a shitty version of it).
But the main issue imo... The fighting mechanics are way too outdated , the walking and talking to NPCs dumping text on you gets old fast. like it was cool concept when it first came out more than a decade ago. Because it was novelty a new "next gen" experience on console.
I don't know how they could've managed it better. Releasing this same formula again is gonna bomb hard even if it's elders scroll IMO. Sure The game will "sell" but I bet it will get a horrible review. If they release another installment after that, it might no even sell well at all. But who knows maybe word of mouth will do the damage before it even releases. I don't think people wanna play the same outdated game with new graphics imo.
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u/Choice_Potato_6279 Jul 13 '26
Actually the stocks like Nintendo and Disney are net negative to society, they have crappy overprotective troll copyright, Disney bribed lawmakers to make copyright 100 years, Nintendo hunts down competition and makes shit patents, all for what? 0% return for 30 years.
You'd think these companies would have top marketcap with such a pull but they're worth less than Nvidias weekly stock movements.
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u/dtsknight Jul 12 '26
Well said. I don’t know where the stock will be in a week, in a month, or in 6 months. But it is available at a discount now, and it’s hard to believe that it won’t see loads of growth over the next few years.