It’s time for SoftBank Group to stop buying and start selling

SoftBank Group Corp.’s prolific spending on startups and listed companies underpins founder Masayoshi Son’s entire strategy, driving both earnings and share price. But such massive outlays have forced its balance sheet into a hole that suggests the only way out is to start selling.

Net income at the Japanese company dropped 39% for the June quarter, while profit at its eponymous investment unit plunged almost 90% amid a decline in the share prices of key holdings like ride-hailing provider Uber Technologies Inc. and e-commerce company Coupang Inc. Such swings have become a normal feature of SoftBank’s earnings as it rides the peaks and troughs of stock market and startup valuations.