Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Buffett's Berkshire boosts stakes in Japan's five biggest trading houses

Published 11/20/2022, 08:04 PM
Updated 11/20/2022, 11:15 PM
© Reuters. FILE PHOTO: Berkshire Hathaway CEO Warren Buffett, arrives to attend the annual Allen and Co. Sun Valley Media Conference in Sun Valley, Idaho, U.S., July 5, 2022.   REUTERS/Brendan McDermid

By Makiko Yamazaki and Noriyuki Hirata

TOKYO (Reuters) -Berkshire Hathaway Inc, run by billionaire Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday, sending shares higher.

The move is line with Berkshire's statement in 2020 that its investments in the Japanese trading houses were for the long term and the stakes could rise to 9.9%.

Berkshire's stakes have increased to 6.59% from 5.04% in Mitsubishi Corp, to 6.62% from 5.03% in Mitsui & Co Ltd, to 6.21% from 5.02% in Itochu Corp, to 6.75% from 5.06% in Marubeni Corp and to 6.57% from 5.04% in Sumitomo Corp.

The news boosted shares of the five trading houses, led by Mitsubishi and Marubeni, which were up about 2% against a nearly flat benchmark Nikkei average.

Takashi Hiroki, chief strategist at Monex, said he was not surprised that Berkshire had bought more shares.

"Trading companies' high stock prices are associated with high commodities prices, but there's much more to their businesses than that," he said. "Their earnings are good and shareholder returns are strong."

Shares of the five trading houses have risen by double digit percentages since the start of the year, outperforming a 3% drop in the Nikkei average.

© Reuters. FILE PHOTO: Berkshire Hathaway CEO Warren Buffett, arrives to attend the annual Allen and Co. Sun Valley Media Conference in Sun Valley, Idaho, U.S., July 5, 2022.   REUTERS/Brendan McDermid

Japanese regulatory rules require disclosure within five business days when an investor who owns more than 5% of a listed company raises or cuts a stake by 1 percentage point.

Berkshire's increased investments in the trading houses come as it bought more than $4.1 billion of stock this month in Taiwan Semiconductor Manufacturing, a rare significant foray into the technology sector by the conglomerate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.