Throughout this blog, I’ve documented my journey of moving away from emotional trading and, with the help of my AI, rebuilding a rational portfolio based on data. Through my dialogue with AI, I’ve learned the deep importance of a “core strategy” that diversifies across global markets, a process I detailed in my previous diary entry.

However, a desire for another kind of challenge was always simmering in the back of my mind.
It’s the dream of discovering a small, unknown company with the potential to blossom, to support its growth from the very beginning—a feeling akin to the quest for a “tenbagger” (a 10x stock).

Today, I want to share the story of why I decided to take the first step in this seemingly reckless challenge and reveal the new compass my AI co-pilot and I built for the journey.

It All Started with a Chat with a Venture Capitalist

The direct catalyst for this challenge was a recent conversation with a venture capitalist (VC).

He spoke passionately about the sheer number of startups in Japan with incredible founders and technology, all genuinely trying to build a better future. But he also shared a frustration:

“There are so many fascinating companies that struggle to get funding simply because they’re still small. It’s a problem of information asymmetry, you could say…”

Those words struck a deep chord. Wasn’t this the exact same dynamic at play in the public stock market, especially in the realm of small-cap growth stocks?

This is a segment of the market that’s often off the radar of professional institutional investors, and public information is limited. Could there be “hidden gems” here, undervalued simply because they are undiscovered? And if I could find them, wouldn’t that be more than just an investment? Wouldn’t it be a way to support the companies shaping our future? This is the core of my approach to **AI investing in Japan**.

Relying on intuition alone would be far too dangerous in this territory. But what if, together with my AI, I could overcome this information asymmetry? That was the moment a hypothesis crystallized into conviction.

My AI Co-Pilot: Forging a Hypothesis into a Strategy

I immediately took this passionate idea to my AI. “Is there a repeatable method,” I asked, “to unearth potential tenbagger candidates from the universe of Japanese small-cap growth stocks?”

The AI’s answer wasn’t a simple “YES.” Instead, it met my vague hypothesis with a series of constructive suggestions, backed by vast amounts of data and established investment theory.

“To measure growth, this metric is essential.”
“But that’s not enough. To avoid bankruptcy risk, we must also combine it with these financial health criteria.”
“Historically, tenbagger stocks show these statistical commonalities.”

Our dialogue felt like a pilot and a brilliant co-pilot meticulously planning a flight path. The AI respected my intuition and passion but stress-tested it against objective data, highlighting risks and revealing safer, more reliable routes. Through this process, my initial hypothesis was forged into a systematic and repeatable framework.

Taking the First Step

This week, guided by “Strategy G,” I took the next step in my portfolio’s evolution and initiated a real-world action.

Of course, this is not a reckless bet with my entire portfolio. Applying the lessons I’ve learned, I’ve allocated about 8% of my total assets to this new challenge, carving it out from my existing “Satellite Assets.” As a result, my asset allocation has changed as follows:

From a shortlist of dozens of candidates that the AI filtered, I performed the final qualitative analysis myself and invested in a handful of companies that I felt a strong conviction for. These include firms with unique technology supporting corporate DX and others developing fascinating services using AI.

I don’t expect this new approach to **AI investing in Japan** to bear fruit immediately. In fact, I fully expect to make mistakes along the way. But with the compass I built alongside my AI co-pilot, I’m confident I won’t lose my way.

Coming Next: The Complete Blueprint of Our “Framework”

This journey feels like a testament to the idea that even individuals without expert financial knowledge can tackle professional-grade challenges by leveraging generative AI. This potential surely extends far beyond the world of investing.

In my next “Knowledge” article, I’ll pull back the curtain and share the complete blueprint of the small-cap growth stock “Framework” that my AI and I spent weeks developing.

I’ll explain **why we limited our investment universe to companies with a “market cap under $300M, listed within the last 5 years.”** I’ll also reveal the secret behind our unique screening model, which isn’t just a simple filter but an **AI-powered system that automatically scores and ranks companies based on “Growth,” “Financial Health,” and more.** And finally, I’ll detail the **evaluation matrix** we created to find the “true gems” from the top 20 highest-scoring companies.

I hope my new challenge provides a hint for your own wealth creation and inspires a new way of collaborating with AI.