The share price of the top five Japanese trading houses surged on Tuesday, following the report yesterday that Warren Buffett’s Berkshire Hathaway has increased its stake in their companies.
As of 9:49 BKK time on Tuesday, the share price of Itochu Corp rose 3.83%, Marubeni Corp gained 4.18%, Mitsubishi Corp increased 4.28%, Mitsui & Co Ltd surged 4.32% and Sumitomo Corp edged 3.77% higher.
Yesterday, it was reported that Berkshire Hathaway has strengthened its investments in Japan’s premier trading firms, just weeks following Warren Buffett’s highly anticipated annual communication to shareholders that hinted at potential escalations in these stakes.
According to the filing, the company of the Wizard of Omaha has increased the stake of five trading houses by about 1 percentage point to range between 8.5% to 9.8%.
These developments align with Buffett’s previous statements in February indicating a strategic intent to deepen involvement with these giant trading entities. This bold move further underscores Berkshire’s growing interest in Japan’s complex trading landscape, highlighting a long-term investment strategy in one of the world’s most robust markets.
Warren Buffett’s Berkshire Hathaway initially invested in the five major Japanese trading firms back in 2020. Since Buffett’s involvement, these trading houses have consistently outperformed the Nikkei 225, owing not only to a surge in commodity prices in 2022 but also their expansive business operations which provide resilience against market fluctuations.
Buffett has commended the Japanese trading houses for their prudent dividend increases, sensible share buybacks, and restrained executive compensation compared to American firms.
