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Warren Buffett's Berkshire Hathaway reveals $6 billion investment in 5 Japanese giants

Aug 31, 2020, 21:31 IST
Business Insider
Bill Pugliano/Getty
  • Warren Buffett's Berkshire Hathaway on Sunday night disclosed a $6 billion bet on five of Japan's biggest trading companies.
  • The billionaire investor's company said it owned just over 5% of Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo.
  • "I am delighted to have Berkshire Hathaway participate in the future of Japan and the five companies we have chosen for investment," Buffett said in the statement.
  • Visit Business Insider's homepage for more stories.
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Warren Buffett marked his 90th birthday on Sunday by revealing a $6 billion investment in five of Japan's largest trading companies.

The famed investor's Berkshire Hathaway conglomerate said it had built passive stakes of just over 5% in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo over the past 12 months. Its National Indemnity subsidiary made the investments.

"I am delighted to have Berkshire Hathaway participate in the future of Japan and the five companies we have chosen for investment," Buffett said in the press release.

"The five major trading companies have many joint ventures throughout the world and are likely to have more of these partnerships," he continued. "I hope that in the future there may be opportunities of mutual benefit."

Read more: GOLDMAN SACHS: Buy these 9 stocks that are poised to continue crushing the market as the 'shared favorites' of Wall Street's biggest investors

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Shares in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo all rose by 4% to 10% on Monday.

Buffett's company highlighted its longstanding positions in Coca-Cola, American Express, and Moody's in the statement, underscoring its intention to maintain the Japanese investments for the long term.

Berkshire has the option to boost its stakes as high as 9.9% in any of the five companies. Buffett pledged to seek approval from the relevant board of directors to raise it beyond that point.

Investing in Japanese companies is a departure from the norm for Berkshire, as it has historically favored American businesses such as Apple and Bank of America. However, it has made a few bets on foreign companies, such as the Brazilian payments group StoneCo.

Read more: MORGAN STANLEY: Buy these 12 underappreciated stocks that offer strong profit growth and are due for a surge

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