Berkshire Hathaway, led by Warren Buffett, is considering raising its stakes in Japan’s five major trading companies due to their strong business strategies. Current holdings are about 9%, with an expected increase following a relaxation of ownership caps. The total market value of these investments is approximately $23.5 billion, correlating with rising share prices.
Warren Buffett’s Berkshire Hathaway Inc. is contemplating increasing its stake in Japan’s five major trading houses, reflecting a strong enthusiasm for their diverse business strategies spanning food and energy sectors. Currently, Berkshire’s equity stakes in Mitsubishi Corp., Mitsui & Co., Itochu Corp., Sumitomo Corp., and Marubeni Corp. are around 9%, with potential increases due to a newly agreed-upon relaxation of the ownership ceiling.
In a letter to Berkshire shareholders, Buffett indicated, “The five companies agreed to moderately relax the ceiling. Over time, you will likely see Berkshire’s ownership of all five increase somewhat.” Buffett’s initial investments in these Japanese firms commenced in 2019, and he has progressively elevated Berkshire’s holdings since then, amounting to approximately 9% as of February 2024.
At the close of 2024, Berkshire held shares in these trading houses valued at approximately $23.5 billion, demonstrating a significant market presence. The ongoing interest from Buffett has corresponded with a notable surge in the share prices of these companies, likely attributed to his investments and their subsequent market performance.
Berkshire Hathaway’s potential for increased investments in Japan’s major trading houses not only highlights Warren Buffett’s confidence in their business models but also reflects a strategic shift allowing greater ownership. Such moves could further influence share prices positively and enhance Berkshire’s portfolio in the diversified sectors of food and energy.
Original Source: japannews.yomiuri.co.jp
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