Source: Fugumatsu, Oita, Japan established in the 1958. Highly recommended.
Fugu (popper fish) is a delicate fish. It has a unique texture and a subtle flavor. It is versatile and can be enjoyed as sashimi, grilled, steamed or deep fried. The fins are used to flavor sake, called hire-sake. None of the fish will be wasted, except the poisonous parts that can kill you.
The history of eating fugu in Japan dates back around 20,000 years ago, based on the fossils found from ruins. Eating the fish, because of its poison, was banned in the late 1500s1. It continued to be unlawful to enjoy fugu for the samurai class during the Tokugawa era. Matsuo Basho, the 17 century poet, wrote a poem, “Stupid eating fugu, you can have tai (snappers)”.
So how good is fugu? An artist from the Showa era wrote that fugu’s deliciousness is absolute and it is better than sushi, sashimi, Foie Gras, or a juicy beef steak. Thanks to science, he writes in 1935, the poisonous parts are identified and how to prepare it without harm has been established2.
The similarity of eating fugu and investing in distressed assets (some call it “special situation investing”) occurred to me when I was speaking with an experienced specialist. In spite of the attractive returns and low volatility the strategy has delivered over the years (the strategy simply buys undervalued assets and sells when the price recovers), some investors cannot not get their mind around it. Distressed assets seems “poisonous.” If you take out securities that have a very low probability to recover its value, you are left with a portfolio of assets with promising returns.
Is fugu better than snapper? I thoroughly enjoyed it a few years ago at Fugumatsu. The different ways the dishes are prepared brings out the multi dimensional character of the fish. It is no wonder that the fish was craved by many and the rulers banned as a result. Knowing that the annual number of death from fugu poison is less than 3 in Japan (mostly prepared at home) while the number of traffic accident deaths was around 3000, it seems pretty safe to eat.
If you take the poisonous part out, it is not poisonous.
It must have been popular, otherwise why ban it?
All modern fugu chefs in Japan are licensed and eating the fish is harmless… except from the bill at the end.