I'm a net-net investor. I trade stocks with more current assets net of all liabilities than their market cap. Unfortunately there are not many stocks so cheap. At least, in developed markets like Europe, the US, Canada and Australia. So to get sufficient diversification I also invest elsewhere. At the moment 40% of my net-nets are in China and Hong-Kong and about 40% in Japan. It's the Japanese stocks I want to talk about in this article. In the long run stocks prices correct for exchange rates. So if the Japanese yen goes down Japanese stocks go up, especially the exporting ones. But usually there is a delay. And with net-nets the best holding period is often less than a year. Therefore, if my net-net goes up and the yen goes down my net profit could be zero. So when I invest in, for example, the Japanese net-net Funai Electric (OTCPK:FUAIY) or Shinko Shoji (OTCPK:SKSJF) I need to have an opinion on the exchange rate of the yen. Even though I'm not a currency trader. BTW, this is my version of a quote from George Soros in his book The Alchemy of Finance. Read more