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Issei Okuno’s Money & Sports Lecture (15) -How to View Companies Part 1
Last time, a third-year baseball team member listened to Mr. Kazunari Okuno, who teaches students about investing in home economics classes while serving as an advisor to the baseball team at Shuei High School. Manager Yuki Sasaki and new member baseball boy Ichiro Suzuki. I felt gloomy that things were happening in Japan that we could not do anything about, and that the government was behind in taking measures.
One of the important points in investment education that high school students learn in home economics is “company”. In the sixth installment of this series, I will focus on “Changes in the Japanese economy as seen in the names of professional baseball teams.” This time, what Yuki and Suzuki are talking about in the baseball club room is the specific content of the “company”.
Yuki: Lotte is a confectionery company. Hanshin is a railroad company. Do you know what ORIX does?”
Suzuki: “Ichiro-san is in a commercial.
Yuki “I don’t understand more and more”
Mr. Okuno joined them.
Okuno: It’s true that just hearing the company name ‘ORIX’ doesn’t give you an idea of what kind of business the company does.
ORIX was founded in 1964. At that time, we had only 13 employees, so it was a small venture that I could not have imagined becoming a large company with a professional baseball team and sales of 2.5 trillion yen.
The company name at that time was Orient Lease. The current ORIX Group is developing various businesses, including finance, but the original business was the leasing business.
So what is the leasing business? In addition to leasing, non-banks include credit card companies, consumer credit companies, and consumer finance companies. None of them are deposit-taking financial institutions such as banks, credit unions, credit unions, labor banks, or agricultural cooperatives, but they are companies that earn profits by lending money and other things. “Non-bank” means that we are doing business similar to a bank, but we are not a bank.”
Suzuki: “It’s not a bank, but you’re lending me money? I don’t really understand.”
Yuki: “If you want to run a business that lends money, a bank is enough, so why is there a non-bank business?”
