Warren Buffett's Berkshire Hathaway boosts stakes again in five Japan trading companies

By Barbara Kollmeyer

Berkshire says those stakes may rise even higher

Berkshire Hathaway said Monday it has again boosted its stake in five Japanese trading companies that the conglomerate's storied leader Warren Buffett purchased two years ago.

Berkshire's (BRKA)(BRKA) stakes in Mitsubishi Corp. , Mitsui , Itochu, Marubeni and Sumitomo now average more than 8.5% each, the company said in a statement. Their aggregate value now "considerably exceeds" that of Berkshire-held stocks in any other non-U.S. country, it added.

The conglomerate originally invested in the five in 2020. In April, Buffett said exposure to each had been lifted to 7.4%, following another boost in November.

The CEO and chairman of Berkshire told CNBC that month while visiting Japan that he had been drawn to those companies due to their similarity to his conglomerate, plus they were selling at a "ridiculous price."

In the statement, Berkshire said it intends to "hold its Japanese investments for thelong term," though depending on prices, those stakes could be lifted to a "maximumof 9.9% in any of the five."

Read: Why Buffett's Japan stock buys look like a savvy move

"The company will make no purchases beyond that point unless given specific approval by the investee's board of directors," the company said.

Buffett has been credited with bringing attention to Japan investments, a move that would have paid off as the Nikkei 225 index has gained 28% so far this year, making it one of the best performing regional indexes. Also helping out, optimism over Japan corporate governance reforms, signs of rising inflation and wages, and souring on China stocks. A weak yen has also assisted Japan stocks, according to some

Read: ETF investors are following Warren Buffett and betting big on Japan. But here are key risks to consider

And those following his lead into those Japan financial stocks would have little to complain about. Shares of Mitsubishi and Marubeni are up 62% year to date, with Mitsui up 44%, Itochu up 35% and Sumitomo 39% higher. Since the start of 2020, shares of Mitsubishi have gained fivefold, while the others have also largely seen strong gains.

-Barbara Kollmeyer

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06-19-23 0932ET

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