Japan's Buddhist Monks Turn to Investing Amid Rising Inflation Fears

Japan's Buddhist temples are struggling to cope with rising costs and dwindling donations. The Kongo-ji temple in Hokkaido has turned to investing, generating over 10% per year from a portfolio of government bonds, shares of carmakers like BYD (BYDDY) and Hyundai, and U.S. Treasuries.

The monks' investment strategy is defensive rather than profit-seeking, aiming to preserve income to maintain the temple's historic building. The traditional financial model supporting these temples has broken down, with donations drying up and families opting for cheaper funeral ceremonies.

Japan's national consumer price index shot up 1.9% in August 2026, causing panic in a country long accustomed to deflation. The Bank of Japan dropped its negative-rate policy, creating a brave new world for savers and institutional investors.