Berkshire Hathaway, the investment firm led by Warren Buffett, has increased its stake in five Japanese trading firms to an average of more than 8.5%.
The companies involved are Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. The aggregate value of these interests surpasses that of Berkshire-held stock in any country outside of the United States, the firm said.
Berkshire Hathaway said it intends to hold its Japanese investments for the long term. CEO Warren Buffett pledged that the company will only purchase up to 9.9% of any of the five firms.
Berkshire Hathaway owns no other investments in Japan.
Commentary
This is a significant development for Berkshire Hathaway and for the Japanese trading firms. It shows that Buffett is confident in the long-term prospects of these companies and the Japanese economy. It also gives the trading firms access to Berkshire Hathaway’s vast resources and expertise.
The increase in Berkshire Hathaway’s stake in the Japanese trading firms is likely to be welcomed by investors. The trading firms are well-established companies with a long history of profitability. They are also well-positioned to benefit from the growth of the Japanese economy.
It will be interesting to see how Berkshire Hathaway’s investment in the Japanese trading firms plays out in the long term. However, the initial signs are positive.