Japan – Buffett’s Berkshire buys more

News overnight ICYMI confirmed Warren Buffett has bought even more in Japan. Buffett’s big buying spree of Japan’s trading houses began in August 2020 when Berkshire Hathaway revealed that it had acquired just over 5% stakes in five major Japanese trading firms:

• Mitsubishi Corp.
• Mitsui & Co.
• Itochu Corp.
• Sumitomo Corp.
• Marubeni Corp.

Buffett’s move was seen as a major endorsement of Japan’s centuries-old sogo shosha (general trading houses), which operate diversified businesses across commodities, energy, industrial goods, and consumer products.

In April 2023, he increased Berkshire’s stakes to over 7% in each firm and hinted at the possibility of further investments. This was seen not only as an endorsement of the firms, but a move on the cheap yen. By November 2023, the stakes had risen further to around 9%.

On Monday, filings to Japan’s finance ministry showed Berkshire had raised its stakes in the above to an average holding of around 9.3%.

This article was written by Eamonn Sheridan at www.forexlive.com.