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Buffett Berkshire Hathaway Increases Stake in Japanese Trading Houses
Berkshire Raises Holdings in Key Commodity Firms
Berkshire Hathaway has increased its stakes in five major Japanese trading companies, according to regulatory filings on Monday. This move marks the latest development in the U.S. conglomerate’s investments in Japan’s top commodity firms, which began nearly five years ago.
Updated Stake Percentages
Berkshire’s holdings in the five trading houses have grown as follows:
- Mitsui & Co: Increased to 9.82% from 8.09%
- Mitsubishi Corp: Stake increased
- Sumitomo Corp: Stake increased
- Itochu Corp: Stake increased
- Marubeni Corp: Stake increased
These changes were disclosed in documents filed with Japan’s securities watchdog by Berkshire’s subsidiary, National Indemnity Company.
Relaxation of Ownership Limits
This move follows Warren Buffett’s annual letter to shareholders, in which he noted that the five trading houses had agreed to “moderately relax” limits that previously capped Berkshire’s ownership below 10%.
Buffett indicated that this trend is likely to continue, stating, “Over time, you will likely see Berkshire’s ownership of all five increase somewhat.”
The Role of Japan’s Trading Houses
Known as “sogo shosha”, these trading firms operate across multiple sectors, including:
- Commodities and materials
- Logistics and supply chain management
- Shipping and transportation
- Energy and metals industries
- Food and consumer products
Their diversified business models and strong global reach make them attractive investment opportunities for long-term value investors like Berkshire Hathaway.
Strategic Implications
Berkshire Hathaway’s continued interest in Japanese trading houses reflects its confidence in their ability to generate stable cash flows. The decision also suggests a growing recognition of the value in Japanese stocks, which have historically been undervalued relative to Western counterparts.
As Berkshire’s stakes approach 10%, investors will be watching closely for further increases and potential strategic developments in the Japanese market.
“Buffett Berkshire Hathaway Increases Stake in Japanese Trading Houses” “Buffett Berkshire Hathaway Increases Stake in Japanese Trading Houses”