Warren Buffett’s Berkshire Hathaway increases stakes in five trading companies
- Berkshire Hathaway said on Monday that its wholly-owned subsidiary National Indemnity Company has increased its stake in five Japanese trading companies to an average of more than 8.5%.
- The companies involved are Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.
- Berkshire Hathaway said it intends to keep its Japanese investments for the long term, with CEO Warren Buffett promising the company will only buy up to 9.9% of any of the five firms.
The logo of the American multinational investment conglomerate Berkshire Hathaway is displayed on a smartphone screen.
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Berkshire Hathaway said on Monday that its wholly-owned subsidiary National Indemnity Company has increased its stake in five Japanese trading companies to an average of more than 8.5%.
The companies involved are Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. The combined value of these interests exceeds the value of Berkshire-owned shares in any country outside the United States, the firm said.
Berkshire Hathaway said it intends to keep its Japanese investments for the long term, with CEO Warren Buffett promising the company will only buy up to 9.9% of any of the five firms.
Buffett visited Japan in April to announce that Berkshire Hathaway would increase its investment in the various Japanese trading houses to 7.4%, after identifying the five businesses as comparable entities to his Omaha-based conglomerate.
The five firms are the largest of Japan’s so-called sogo-shosha, or general trading companies, and focus on diversified long-term investments that prioritize value and cash flow. Traditionally, they have been central to the import of energy, minerals and food to Japan and exporters of finished products.
Berkshire Hathaway owns no other investments in Japan.
