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Warren Buffett said that Berkshire Hathaway could increase its already large stake, which could be at the core of Japan’s industrial core It will increase its already large stake, so the shares of five Japanese trading companies rose by 9%.
Five shares rose 4% to 9% in Berkshire’s morning trading in Tokyo over the weekend, revealing its intention to increase ownership and hold “decades” of shares. Markets in Japan closed on Monday for a public holiday.
Mitsubishi saw growth of about 9%, while Mitsui, Marubeni, Sunitomo and Ithu all rose by more than 4%.
Berkshire revealed in 2020 that it made 5% investments in each trading institution, totaling more than $6 billion, and subsequently increased its stake.
The market value of these holdings soared to $23.5 billion, while the cost of acquiring them was $13.8 billion.
Buffett told shareholders in Saturday’s annual letter that Berkshire has agreed to the consent of five trading buildings to relax the cap and limit its investment to 10%.
“As time goes by, you may see an increase in ownership of all five people in Berkshire,” he wrote.
The five companies have expanded their activities from commodity trading to hold a highly diverse portfolio, including convenience store chains, salmon farms, infrastructure and technology startups. Each trading company has hundreds of companies in its portfolio, some of which have up to 1,300 companies.
“These guys are like Japanese private equity,” said Thanh Ha Pham, an analyst at Jefferies.
Buffett’s signal to increase investment in trade institutions is that in the decade of corporate governance reform, and after prices fell or fell three decades, the return on inflation attracted global investors to Japan.
In his letter, Buffett highlighted the $812 million dividend expected by Berkshire Trade House Stock in 2025, highlighting the greater focus of Japanese management team on investor returns.
Marubeni said on Tuesday that Berkshire’s interest is “proves that the trading company sector, including our company, has a high emphasis.”
Despite speculation that it may expand the country’s portfolio, the trading agency remains the only Japanese division of Berkshire’s investments.
Investors suggest Berkshire may use its stake in trading institutions to acquire transactions for infrastructure and energy, a region where U.S. companies have important global interests.
Mitsubishi said it was in a “continuous discussion” about cooperation with Berkshire, including joint investment.
Commitment to increase Japan’s investment in the United States and strengthen U.S. natural gas purchases is a key result of a recent meeting between Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump.
“Japan needs the energy of the United States and the United States, and needs the financial and technical support of Japan,” Pham said.
“I’ll see trade houses at the center of it,” he added, noting that Berkshire also likes the flexibility of the exchange, namely exiting dying industries and pivoting to high-growth areas.
“The business model makes sense, we’ve seen a lot of it [foreign direct investment] Enter Japan,” Pham said. “Geopolitics is changing and these guys will benefit from it. ”
