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<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> is in talks to partner with <keyword id="138513" type="COMPANY" weightage="60" keywordseo="Mitsui">Mitsui</keyword>, CEO Tatsuo Yasunaga told Nikkei Asian Review.</li><li>"We have been in discussions to identify where we can collaborate on new business and where there are mutual benefits in using our global network," Yatsunaga said.</li><li>Berkshire revealed 5% stakes in Mitsui and four other Japanese trading companies at the end of August, and Yatsunaga immediately wrote to Buffett about joining forces.</li><li>Yatsunaga intends to expand Mitsui's joint venture with Berkshire-backed Davita into <keyword id="6355311" type="UNKNOWN" weightage="60" keywordseo="japan">Japan</keyword>, he said.</li><li><a href="https://www.businessinsider.com/international?r=US&amp;IR=TIR=T">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's Berkshire Hathaway is exploring partnerships with Mitsui, the Japanese trading group's boss told Nikkei Asian Review in a <a href="https://asia.nikkei.com/Editor-s-Picks/Interview/Mitsui-tells-new-shareholder-Warren-Buffett-health-care-is-the-future">recent interview</a>."We have been in discussions to identify where we can collaborate on new business and where there are mutual benefits in using our global network," Mitsui CEO Tatsuo Yasunaga told the newspaper.Read More: <a href="https://www.businessinsider.com/stock-picks-to-buy-35-huge-sales-and-margin-growth-2020-10" target="_blank" rel="noopener noreferrer">Goldman Sachs says buy these 35 stocks for big gains right now, as they offer double-digit sales growth and explosive margin expansion</a>Yasunaga began talks with Berkshire by letter in early September, days after Buffett's company <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397?utm_source=markets&amp;utm_medium=ingest#est#">revealed</a> 5% stakes in Mitsui and four other <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-7-billion-japanese-sogo-shosha-companies-2020-9-1029561054#">Japanese trading companies</a>. The positions were worth about $6.5 billion in total at the close of Tokyo trading on Tuesday.Buffett, in the <a href="https://www.berkshirehathaway.com/news/aug3020.pdf">press release</a> announcing the holdings, highlighted the quintet's myriad joint ventures and expressed his hope for "opportunities of mutual benefit."Mitsui already has a joint venture with Davita, a kidney-dialysis specialist that counts Berkshire as its biggest shareholder, with a roughly 30% stake. Mitsui plans to expand their partnership from Singapore, Malaysia, and China to Japan, Yasunaga told Nikkei Asian Review.Yasunaga also signaled he's eager to work with Berkshire's insurance subsidiaries, which include Geico and Gen Re as well as National Indemnity, that bought the Japanese shares."I would like to make new businesses with insurance and pharmaceutical companies by using our data," he said.Read More: <a href="https://www.businessinsider.com/investing-tips-strategy-stock-picks-recommendations-fund-manager-david-dudding-2020-10" target="_blank" rel="noopener noreferrer">A fund manager beating 90% of his rivals told us why he actively avoids companies with giant profit margins — and shares 5 stocks he thinks will keep winning for years</a>Berkshire and Mitsui's shared interest in collaborating isn't surprising, as they're both sprawling conglomerates with significant overlap in their operations.Buffett's company owns scores of businesses across the retail, manufacturing, construction, transportation, insurance, and consumer goods industries. Meanwhile, Mitsui's core businesses include mining, energy, machinery, and chemicals, and its growth areas span mobility, healthcare, nutrition, and retail.

Warren Buffett's Berkshire Hathaway is in talks to partner with Mitsui, the Japanese trading group's CEO says

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> has built 5% stakes in <keyword id="6355311" type="UNKNOWN" weightage="60" keywordseo="japan">Japan</keyword>'s five biggest "<keyword id="9876400" type="UNKNOWN" weightage="60" keywordseo="sogo-shosha">sogo shosha</keyword>" or general trading companies: Itochu, Marubeni, <keyword id="6427662" type="ORGANIZATION" weightage="60" keywordseo="mitsubishi">Mitsubishi</keyword>, <keyword id="138513" type="COMPANY" weightage="60" keywordseo="Mitsui">Mitsui</keyword>, and Sumitomo.</li><li>Their operations span multiple industries including mining, energy, food, aerospace, retail, real estate, <keyword id="25455" type="ORGANIZATION" weightage="100" keywordseo="finance">finance</keyword>, consulting, and logistics.</li><li>Buffett may have backed them because of their depressed valuations, improved management, and similarities to Berkshire, Maria Nikishkova, a Fidelity International research analyst, told Business Insider.</li><li>If Berkshire subsidiaries collaborate with sogo shosha businesses it could end up "making Buffett's entrance point very attractive," she said.</li></ul>Warren Buffett's Berkshire Hathaway <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397">recently revealed</a> 5% stakes worth a total of <a href="https://markets.businessinsider.com/news/stocks/why-warren-buffett-berkshire-hathaway-7-billion-5-japanese-stocks-2020-9-1029555556#">$7 billion</a> in five Japanese giants: <a href="https://markets.businessinsider.com/stocks/itochu-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Sumitomo</a>.They are the largest of the country's "sogo shosha" — general trading companies that engage in a vast range of international business activities.Those run the gamut from mining metals to producing energy, processing meat, manufacturing aircraft parts, operating stores, <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> in real estate, and providing services such as financing, consulting, and logistics.Their diverse operations give them a "holistic" view across many industries, which they leverage to develop new business models, technologies, and services, Mitsubishi said in its latest strategy report.Read More: <a href="https://www.businessinsider.com/warren-buffett-berkshire-hathaway-investing-strategy-japanese-stocks-turning-point-2020-9" target="_blank" rel="noopener noreferrer">A top strategist explains why Warren Buffett's latest bets could be a 'true turning point' for Japanese stocks</a>The "big five" sogo shosha have market capitalizations between $10 billion and $42 billion, annual revenues of $48 billion to $136 billion, and profits ranging from $4.9 billion in net income to a $1.8 billion net loss, according to Sentieo, a financial-research site.Their stock prices are down an average of 7% this year, and all but one (Itochu) trade below book value, meaning their market caps are lower than their net assets.However, it's tricky for investors to determine whether the companies are undervalued, Maria Nikishkova, a research analyst at Fidelity International, told Business Insider. The timeframes for investment returns vary between their businesses, and it's tough to gauge their overall risk profiles, she said.Moreover, their many joint ventures mean they lack full control of their operations, their late-stage investments often have limited upside, and their earnings can be volatile, Nikishkova continued.They have also been forced to write down the value of some assets due to financial crises, pressure on commodity prices, and low interest rates, she added.Read More: <a href="https://www.businessinsider.com/investing-strategy-for-small-companies-from-mircocap-expert-ian-cassel-2020-9" target="_blank" rel="noopener noreferrer">'You can make 5, 10, 50x your money': Here's an inside look at the 7-part strategy small-stock expert Ian Cassel is using to unearth the market's most overlooked gems</a>Buffett's decision to bet on them is an "interesting development," Nikishkova said. It likely reflects his signature strategy of buying companies trading below their intrinsic values, she continued.The famed investor's backing may also be due to their increased focus on allocating capital wisely, generating cash, and boosting shareholder returns through dividends and buybacks, Nikishkova added.Other key factors might be the similarities between Berkshire and the sogo shosha, and the potential for collaborations, she said.Berkshire owns scores of businesses — including See's Candies, Geico, PacifiCorp, and the BNSF railway — and boasts massive stakes in Apple, Bank of America, Coca-Cola and other public companies.If it invests alongside or forms joint ventures with the Japanese giants, that could boost the value of the sogo shosha, "making Buffett's entrance point very attractive," Nikishkova said.

Warren Buffett has $7 billion invested in 5 Japanese trading houses. Here's a look at the 'sogo shosha'

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> recently revealed 5% stakes in <keyword id="6355311" type="UNKNOWN" weightage="60" keywordseo="japan">Japan</keyword>'s five largest <keyword id="2606450" type="PERSON" weightage="60" keywordseo="trading-houses">trading houses</keyword>: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.</li><li>The famed investor blasted Japanese businesses in 1998, highlighting their lack of earnings power and low returns on equity.</li><li>"We're quite a bit less enthused about those <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">stocks</keyword> as being any kind of obvious bargains," Buffett said at Berkshire's shareholder meeting that year.</li><li>"Corporate governance, profit margins, and business structures are like night and day since then," John Vail, chief global strategist at Nikko Asset Management, told Business Insider.</li></ul>Warren Buffett seems to have warmed to Japanese stocks, more than 20 years after dismissing them as inferior investments.The famed investor's Berkshire Hathaway conglomerate <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397">recently disclosed</a> it had taken 5% stakes in all five of Japan's biggest trading houses or "<keyword id="9876400" type="UNKNOWN" weightage="60" keywordseo="sogo-shosha">sogo shosha</keyword>": <a href="https://markets.businessinsider.com/stocks/itochu-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Sumitomo</a>.The bets, <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-scores-570-million-gain-japanese-stocks-2-days-2020-9-1029551264#">worth a combined $7 billion</a> at the close of trading on Thursday, mark a reversal of Buffett's stance at <a href="https://www.dropbox.com/s/etweigonkss9p4y/Berkshire%20Hathaway%20Shareholder%20Meeting%20Transcript%20-%201998.pdf?dl=0">Berkshire's annual meeting in 1998</a>."We're quite a bit less enthused about those stocks as being any kind of obvious bargains," Buffett replied to a shareholder's question about whether he saw value in Japanese equities.Read More: <a href="https://www.businessinsider.com/warren-buffett-berkshire-hathaway-investing-strategy-japanese-stocks-turning-point-2020-9" target="_blank" rel="noopener noreferrer">A top strategist explains why Warren Buffett's latest bets could be a 'true turning point' for Japanese stocks</a> (edited) "Earnings have been poor for a great many Japanese companies," he continued. "Returns on equity are very low," he added, referring to the ratio of net income to shareholders' equity."It's extremely difficult to get rich by owning a business that earns a low return on equity," Buffett added. "Even if you buy it cheap to begin with."Berkshire was no longer interested in "cigar butt" <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword>, or seeking out "pathetic" companies with "one good free puff left," Buffett said."Time is the enemy of the poor business, and it's the friend of the great business," the Berkshire chief said. His company's focus on long-term investing required it to "stay away" from businesses with low returns on equity, he added.Moreover, Buffett's business partner and Berkshire's vice chairman, Charlie Munger, flagged the difficulty of judging company cultures in foreign countries. He gave the example of a business that might care more about serving a particular community than its shareholders.However, Munger wisely left the door open to Japanese investments in the future."I suppose anything could happen," he said. "After all, we <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-bought-3500-tons-silver-made-thomas-kaplan-billionaire-2020-5-1029228443#">bought silver</a>. But we have never made a big sector play on a country. In fact, we've almost never made a big sector play."Read More: <a href="https://www.businessinsider.com/investing-strategy-for-small-companies-from-mircocap-expert-ian-cassel-2020-9" target="_blank" rel="noopener noreferrer">'You can make 5, 10, 50x your money': Here's an inside look at the 7-part strategy small-stock expert Ian Cassel is using to unearth the market's most overlooked gems</a>Berkshire's bets on five Japanese trading companies show Buffett and Munger have changed their minds since then. They're right to do so, John Vail, chief global strategist at Nikko Asset Management, told Business Insider. "Japan is extremely different now than in 1998," he said. "That was even before Koizumi, not to mention Abe," he continued, referring to former Prime Minister Junichiro Koizumi and current Prime Minister Shinzo Abe."A few things remain the same, but corporate governance, profit margins, and business structures are like night and day since then," Vail added.

Warren Buffett has $7 billion riding on Japanese stocks. He trashed them as bad investments in 1998

<ul class="summary-list"><li>Warren Buffett's investments in five Japanese companies are emerging as winners in Berkshire Hathaway's portfolio. </li><li>A Bloomberg analysis points out that share prices in Mitsubishi and Mitsui have respectively climbed 100% and 130% since Buffett's initial investments in 2020.</li></ul>Warren Buffett invested in a batch of Japanese companies at a time when other investors shunned them – and his moves have been paying off as the recent commodities boom set them up to rake in record profit and see their share prices soar, according to Bloomberg. Buffett is the third-largest shareholder in <a href="https://www.tradingview.com/symbols/SAPSE-8031/">Mitsui &amp; Co</a>. and a leading investor in Mitsubishi Corp., Itochu Corp., Sumitomo Corp., and Marubeni Corp. The five companies, known collectively as the sogo shosha, or general trading companies, emerged as winners of the 2022 inflation shock, according to a <a href="https://www.bloomberg.com/opinion/articles/2023-01-09/the-warren-buffett-way-to-profit-from-the-energy-crisis?sref=GUP2BhaG">Bloomberg analysis of the holdings</a> published Monday. They invest in worldwide energy and commodity projects, including those focused on oil, coal, copper, and liquefied natural gas, or LNG. Last year's surge in prices for raw materials allowed the companies to squeeze record-high amounts of cash from those projects, and the companies also profited from the trading of natural resources. The group is heading toward a collective record profit of nearly 3.9 trillion yen ($29.49 billion) for the upcoming end of the 2023 fiscal year, the report said. Meanwhile, share prices of Mitsubishi and Mitsui – the two most profitable sogo shosha – have climbed 100% and 130%, respectively, since Buffett's initial investment in 2020.Buffett's investment company, Berkshire Hathaway, made its first disclosure of the investment in the sogo shosha in August 2020, with 5% stakes in each then worth a total of $6 billion, said Bloomberg. Those positions have gained more than 50%, even when accounting for the <a href="https://markets.businessinsider.com/currencies/jpy-usd">yen's depreciation against the dollar</a>. And two months ago, Berkshire disclosed more share purchases, increasing its stake to about 6.5% — or about $12 billion at today's exchange rate.Other investors had previously ditched stakes in the Japanese companies after a long run of stagnant profits and poor market performance, the analysis said. Before 2020, their combined net income stayed at roughly 1.5 trillion yen for more than a decade.

Warren Buffett's energy bets in Japanese companies are turning out to be huge winners, with some up 100% since his initial investment

<ul class="summary-list"><li>Berkshire Hathaway said Monday that it had poured more cash into Japan's five largest trading houses.</li><li>The holdings of Warren Buffett's conglomerate in the stocks now average over 8.5%.</li></ul>Warren Buffett's Berkshire Hathaway has poured more money into Japan's top five trading houses, pressing ahead with its big bet on the Asian country where stocks are trading near three-decade highs.Berkshire said in a <a href="https://www.berkshirehathaway.com/news/jun1923.pdf" target="_blank" rel="noopener">news release</a> that its stakes in the five stocks now averaged over 8.5% – up from <a href="https://markets.businessinsider.com/news/stocks/buffett-munger-meeting-banks-real-estate-occidental-ai-apple-dollar-2023-5?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">the 7.4% figure it had disclosed</a> in May.Buffett's conglomerate, which mostly invests in the US, surprised many close followers when it reported 5% stakes in five Japanese trading houses – <a href="https://markets.businessinsider.com/news/itocy-stock">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/maruf-stock">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/msbhf-stock">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mslof-stock">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/ssumf-stock">Sumitomo</a> – in August 2020.But Japanese equities have surged since, with the country's flagship <a href="https://markets.businessinsider.com/index/nikkei_225">Nikkei 225</a> stock-market index up around 50% and <a href="https://asia.nikkei.com/Business/Markets/Japan-s-Nikkei-hits-32-000-reaching-33-year-high" target="_blank" rel="noopener">hitting a 33-year high</a> earlier this month.The five Japanese companies owned by Berkshire are known as "sogo shosha" – or general trading houses – and tend to serve as intermediaries for a wide range of products including materials and food.Buffett intends to hold the stocks for the long-term and eventually up his stakes to a maximum of 9.9%.At Berkshire's annual meeting in May, the billionaire investor said the five Japanese companies were "ridiculously" cheap, had a long-term focus, and were big enough to have a material impact on the conglomerate's earnings.Tokyo has also been pushing for the country's listed companies to return more money to investors, likely boosting their appeal to Buffett.Read more: <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-japan-stock-price-portfolio-shareholder-returns-2023-6">Warren Buffett's Japan bets have nearly tripled in value to north of $17 billion in under 3 years</a>

Warren Buffett presses ahead with his big bet on Japan, upping his stakes in 5 trading houses

<ul class="summary-list"><li>Warren Buffett's Japan bet has swelled from about $6 billion to $15 billion in under three years.</li><li>He's grown his stakes in five Japanese companies from about 5% in August 2020 to 7.4% today.</li></ul>Warren Buffett's unusual bet on five Japanese stocks has ballooned in size from roughly $6 billion to $15 billion in under three years.The famed investor's company, <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a>, first <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397?miRedirects=1&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">revealed it owned</a> just over 5% of Itochu, Marubeni, Mitsui, Misubishi, and Sumitomo on August 30, 2020. The conglomerate <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-buys-japan-stocks-portfolio-spending-spree-2022-11?utm_medium=ingest&amp;utm_source=markets">boosted its positions</a> in the five "<a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-7-billion-japanese-sogo-shosha-companies-2020-9-1029561054">sogo shosha</a>" or trading houses to between 6.2% and 6.8% by November last year.Since then, Berkshire has raised its stakes to around 7.4% across the board, Buffett <a href="https://markets.businessinsider.com/news/stocks/buffett-munger-meeting-banks-real-estate-occidental-ai-apple-dollar-2023-5">disclosed</a> during Berkshire's annual shareholder meeting this month.Meanwhile, the five Japanese stocks have soared by an average of 146% to multi-decade highs since Buffett's first disclosure. Marubeni has led the way with a 241% gain, while Itochu has trailed the pack with a 85% rise.The upshot of Berkshire raising its interests in the businesses by roughly 50% within the past three years, and the stocks skyrocketing in price during the same period, is that Buffett's company now has about 2.5 times as much money riding on them.Buffett's original decision to invest was a surprising one, as he tends to concentrate his wagers and mostly sticks to US stocks. Apple, Bank of America, American Express, Coca-Cola, and Chevron accounted for over 75% of the total value of Berkshire's stock portfolio at the <a href="https://berkshirehathaway.com/qtrly/1stqtr23.pdf" target="_blank" rel="noopener">end of March</a>.The billionaire CEO explained during his company's recent shareholder meeting that he broke from tradition because the Japanese wager was such a no-brainer. The businesses were large enough to move the needle at Berkshire, traded cheaply, operated in a broad range of familiar industries, and several of them paid dividends and repurchased their shares, he said.Moreover, Buffett and his team realized they could hedge against currency depreciation by issuing yen-dominated bonds."They're doing intelligent things, and they're sizable, so we just started buying them," Buffett recalled. "We are $4 billion or $5 billion ahead plus dividends."Buffett emphasized that the stocks were absolute bargains during a recent trip to Tokyo. He <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-japan-trading-houses-inflation-recession-economy-2023-4?utm_medium=ingest&amp;utm_source=markets">described</a> their valuations as "ridiculous" relative to prevailing interest rates.Read more: <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-inflation-recession-rates-credit-business-economy-2023-5?utm_medium=ingest&amp;utm_source=markets" rel="">Warren Buffett's businesses are battling historic inflation, hefty interest rates, and tighter lending. 5 Berkshire Hathaway CEOs break down why they're thriving despite a brutal economic backdrop.</a>

Warren Buffett's Berkshire Hathaway has about $15 billion riding on Japanese stocks that have surged to multi-decade highs

<ul class="summary-list"><li>Warren Buffett has boosted his Japan bets and wants to buy more shares and partner on big deals.</li><li>Berkshire Hathaway owns about 7.4% of Japan's five largest trading houses, Buffett told Nikkei.</li></ul>Warren Buffett's <a href="https://markets.businessinsider.com/stocks/brk-b-stock?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets" rel="">Berkshire Hathaway</a> has boosted its bets on five Japanese companies, and wants to grow its stakes further and partner on big deals, Nikkei reported in a <a href="https://asia.nikkei.com/Editor-s-Picks/Interview/Warren-Buffett-says-he-intends-to-add-to-Japanese-stock-holdings2" target="_blank" rel="noopener">pair</a> of <a href="https://www.nikkei.com/article/DGXZQOUB10C060Q3A410C2000000/" target="_blank" rel="noopener">stories</a> on Tuesday.The famed investor's conglomerate now owns about 7.4% of <a href="https://markets.businessinsider.com/stocks/itochu-stock?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets" target="_blank" rel="noopener">Sumitomo</a>, Buffett told the newspaper while visiting Tokyo to meet with the bosses of all five companies. He <a href="https://twitter.com/SquawkCNBC/status/1645732957246611456" target="_blank" rel="noopener">confirmed the news</a> to CNBC. The combined value of the five positions is likely around $14 billion, a Markets Insider analysis shows."We're very proud of that," Buffett told Nikkei about the investments. The 92-year-old billionaire suggested his company may join forces with one or more of Japan's five largest trading houses in the months and years ahead."We don't think it's impossible that we will partner with them at some point in the future in a specific deal," Buffett said. "We would love if any of the five would come to us ever and say, 'We're thinking of doing something very big or we're about to buy something and we would like a partner or whatever.'"Berkshire originally <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397?miRedirects=1&amp;utm_medium=ingest&amp;utm_source=markets">spent about</a> $6 billion to amass 5% stakes in each of the five Japanese companies, and first disclosed the positions in August 2020. Berkshire <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-buys-japan-stocks-portfolio-spending-spree-2022-11">ramped up its wagers</a> on the "<a href="https://www.jftc.or.jp/shosha/publish/2012_03_en.pdf" target="_blank" rel="noopener">sogo shosha</a>" to between 6.2% and 6.8% by November last year, meaning it had a total of about $11 billion riding on them at the time. The five stocks rose between 2.1% (Mitsubishi) and 4.6% (Marubeni) on Tuesday, as investors welcomed Buffett's vote of confidence. They have gained an average of 121% since Buffett revealed his investments in them.Buffett also spoke to Nikkei about Berkshire's unusual wager on Taiwan Semiconductor. The investor's company <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-stock-portfolio-q3-tsmc-jefferies-lp-2022-11">amassed</a> a $4 billion stake in Taiwan Semiconductor in the third quarter of last year, then promptly <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-q4-stock-portfolio-tsmc-banks-apple-2023-2">slashed the holding</a> by 86% during the next three months.Geopolitical tensions between the US and China over Taiwan were "a consideration" in the share sales, and Berkshire found better places to deploy its capital, Buffett said.Close followers of the investor won't be surprised to learn his company has bolstered its Japan bets. Berkshire <a href="https://markets.businessinsider.com/news/bonds/warren-buffett-berkshire-hathaway-japanese-stocks-yen-bond-sale-investing-2023-4">recently disclosed</a> plans to issue yen-denominated bonds, which help to hedge against the yen falling against the greenback and devaluing its Japanese equities in dollar terms.

Warren Buffett's Berkshire Hathaway has boosted its bets on 5 Japanese titans - plus it wants to raise its stakes more and join forces on big deals

<ul class="summary-list"><li>Warren Buffett's Berkshire Hathaway ramped up its bets on five Japanese stocks.</li><li>Berkshire grew its stakes to over 6%, helping to lift the holdings' combined value to $11 billion.</li></ul>Warren Buffett's <a href="https://markets.businessinsider.com/stocks/brk-b-stock?utm_medium=ingest&amp;utm_source=markets" rel="">Berkshire Hathaway</a> has bolstered its stakes in Japan's five largest trading houses, continuing a historic spending spree that shows few signs of stopping.The famed investor's company <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397?miRedirects=1">revealed</a> 5% stakes worth a combined $6 billion in Itochu, Marubeni, Mitsui, Mitsubishi, and Sumitomo in August 2020. It has now bolstered those positions to between 6.2% and 6.8%, <a href="https://disclosure.edinet-fsa.go.jp/E01EW/BLMainController.jsp?uji.verb=W1E63012CXW1E6A012DSPSch&amp;uji.bean=ee.bean.parent.EECommonSearchBean&amp;TID=W1E63013&amp;PID=W1E63012&amp;SESSIONKEY=1669029705956&amp;lgKbn=1&amp;pkbn=0&amp;skbn=0&amp;dskb=&amp;dflg=0&amp;iflg=0&amp;row=100&amp;idx=0&amp;cal=2&amp;mul=national+indemnity&amp;fls=on&amp;lpr=on&amp;oth=on&amp;mon=&amp;yer=&amp;pfs=4">Tokyo Stock Exchange filings</a> revealed on Monday.Berkshire's enlarged stakes in the Japanese quintet are valued at around $11 billion. The increase in worth reflects the recent purchases, and the five stocks rising by an average of 99% since Berkshire first disclosed its positions in August 2020. However, the yen has fallen by more than 20% against the dollar over the same period, tempering the gain in dollar terms.Following the news, Berkshire <a href="https://www.sec.gov/Archives/edgar/data/1067983/000119312522289445/d372820d424b5.htm">filed</a> a preliminary prospectus for a yen-denominated bond offering. It has <a href="https://markets.businessinsider.com/news/bonds/warren-buffett-berkshire-hathaway-japanese-stocks-yen-bond-issue-hedging-2022-1">issued yen debt in the past</a> to hedge against the currency weakening against the greenback, which would reduce the dollar value of its investments in Japan.The five businesses, known as the "sogo shosha," are <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-7-billion-japanese-sogo-shosha-companies-2020-9-1029561054">sprawling holding companies</a> with operations ranging from mining and energy to finance and real estate. Notably, their interests in oil and natural-gas projects have benefited from the surge in energy prices this year fueled by Russia's invasion of Ukraine.Berkshire's Japanese purchases mark only the latest outlay in a big year of buying. It plowed an unprecedented $66 billion into stocks in the first three quarters of this year, and only sold $16 billion worth, making it a net buyer of nearly $49 billion of equities. It has also repurchased over $5 billion of stock, and handed Buffett's appointed successor, Greg Abel, <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-q2-earnings-stocks-buybacks-abel-bhe-2022-8?utm_medium=ingest&amp;utm_source=markets" rel="">$870 million</a> for his 1% stake in BHE in the second quarter.Buffett has mostly stuck to domestic investments throughout his career — Berkshire's biggest holdings include Apple and Coca-Cola, and it owns scores of American businesses including See's Candies and Geico. That may be starting to change, as Berkshire continues to ramp up its Japan bets, and <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-stock-portfolio-q3-tsmc-jefferies-lp-2022-11">recently built</a> a $4 billion stake in TSMC, a Taiwanese chip manufacturer.On the other hand, Berkshire has <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-us-bancorp-stock-sales-portfolio-banking-2022-11">sold about $900 million</a> of shares in Chinese electric-vehicle maker BYD since July, after not touching its wager on the Tesla rival since 2008.Read more: <a href="https://www.businessinsider.com/stock-market-crash-when-will-sp500-bottom-signals-indicators-wolfenbarger-2022-11">100 years of stock-market history show the sell-off is likely only half done, says a 30-year market vet who called the downturn. Here are 3 criteria to watch to know when the worst is over.</a>

Warren Buffett's Berkshire Hathaway now has $11 billion riding on 5 Japanese stocks, as it continues a record spending spree

<ul><li>Warren Buffett famously moves markets with his decisions, as other investors follow his lead.</li><li>The "Buffett Effect" is likely behind his Berkshire Hathaway conglomerate scoring a 9% gain on its latest investments in just two days.</li><li>Buffett's company <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397">revealed</a> on Sunday night that it has built 5% stakes worth a combined $6 billion in all five of Japan's largest trading companies.</li><li>Their stock prices soared on Monday and Tuesday, generating a $570 million gain for Berkshire.</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett is famous for moving markets when he makes a bet, as other investors trust his judgement and pile into whatever he's bought. The "Buffett Effect" may have generated a $570 million gain for its namesake in just two days.The famed investor's <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a> conglomerate <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397">revealed on Sunday night</a> that it has built 5% stakes in each of the five largest Japanese trading companies or "sogo shosha": <a href="https://markets.businessinsider.com/stocks/itochu-stock">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock">Sumitomo</a>.Read More: <a href="https://www.businessinsider.com/us-investing-championship-strategy-matthew-caruso-contender-secret-to-return-2020-8" target="_blank" rel="noopener noreferrer">US Investing Championship hopeful Matthew Caruso landed a 382% return in the first half of 2020. He shares the unique twist he's putting on a classic trading strategy — and 3 stocks he's holding right now.</a>Japanese regulatory filings confirm that National Indemnity, one of Berkshire's insurance subsidiaries, owns between 5.0% and 5.06% of the five businesses. The positions were worth between $756 million (Sumitomo) and almost $2 billion (Itochu) as of Friday's close.<keyword id="6355005" type="UNKNOWN" weightage="60" keywordseo="news">News</keyword> of Buffett's backing sent the five companies' stock prices up by an average of 9.6% over the course of Monday and Tuesday. The upshot is the combined value of Berkshire's stakes has jumped from the yen equivalent of $6.3 billion to $6.9 billion — a 9%, or $570 million gain.Buffett won't be too excited about the immediate success, as he plans to maintain the five positions for a long time. However, the burst of enthusiasm suggests other investors also see value in the five stocks, validating his bet on them.

Warren Buffett scores a $570 million gain on his new Japanese stocks in just 2 days

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> is set to invest more than $550 million in Snowflake when it goes public, according to the cloud-data group's <a href="https://www.sec.gov/Archives/edgar/data/1640147/000162828020013381/snowflakes-1a1.htm">amended S-1 filing</a>.</li><li>The billionaire investor's company will buy about 3.1 million Class A shares in a private placement, and purchase another 4 million shares from former Snowflake CEO Robert Muglia.</li><li>Salesforce's strategic venture arm has also agreed to invest $250 million in Snowflake stock.</li><li>Berkshire's bet is striking as Buffett has historically stuck to companies he understands, and joins a string of unusual moves from Berkshire, such as <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> in a gold miner and acquiring 5% stakes in five Japanese trading companies.</li><li><a href="https://www.businessinsider.com/international?r=US&amp;IR=TIR=T">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's Berkshire Hathaway has agreed to invest $250 million in Snowflake when it goes public in the coming weeks, according to the cloud-data company's <a href="https://www.sec.gov/Archives/edgar/data/1640147/000162828020013381/snowflakes-1a1.htm">amended S-1 filing</a>.The famed investor's conglomerate will purchase roughly 3.1 million Class A shares in a private placement, based on the $80 midpoint of Snowflake's expected IPO price range of $75 to $85.Buffett's company has also agreed to buy another 4 million Class A shares from former Snowflake CEO Robert Muglia in a secondary transaction, paying the IPO price for each share. That could cost it $303 million to $344 million based on the expected price range.Read more: <a href="https://www.businessinsider.com/stock-market-crash-bofa-september-meltdown-risks-technical-indicators-2020-9?r=US&amp;IR=TIR=T" target="_blank" rel="noopener noreferrer">Bank of America lays out the under-the-radar indicators showing that huge swaths of the stock market are 'running on fumes' — and warns a September meltdown may just be getting started</a>If both purchases go through, Berkshire might spend upwards of $550 million for more than 7 million shares, representing about 19% of the 38.3 million Class A shares that Snowflake expects to be outstanding after its offering.Salesforce has also agreed to purchase $250 million of Snowflake stock through its strategic venture arm, Salesforce Ventures, the filing shows.Snowflake declined to comment in an email to Business Insider.Read more: G<a href="https://www.businessinsider.com/stock-picks-to-buy-for-covid-19-vaccine-gains-goldman-2020-9?r=US&amp;IR=TIR=T" target="_blank" rel="noopener noreferrer">OLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available</a>Berkshire's latest bet is striking as Buffett famously eschews <keyword id="6358815" type="UNKNOWN" weightage="60" keywordseo="tech">tech</keyword> stocks, preferring to invest in businesses he understands. It joins a flurry of surprising moves from his company, including its <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-barrick-gold-miner-investment-big-change-2020-8-1029508701#">first investment in a gold miner</a> and deep cuts to its stakes in JPMorgan, Wells Fargo, and other financial companies <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-sells-jpmorgan-wells-fargo-buys-barrick-gold-2020-8-1029506182#">last quarter</a>.Buffett's company also <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397#">disclosed 5% stakes</a> in the five biggest Japanese trading companies or "sogo shosha" last week, and bought <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-bank-of-america-buying-years-pay-off-experts-2020-8-1029477087#">$2.1 billion</a> of Bank of America stock over 12 straight trading days to August 4.Snowflake was founded in 2012 and <a href="https://www.businessinsider.com/snowflake-reported-ipo-plan-blockbuster-cloud-2020-6?r=US&amp;IR=TIR=T">privately valued</a> at $12.4 billion in February. Its revenues surged 121% year-on-year to $133 million in the the three months to July 31, helping to narrow its operating loss by 19% to $78 million.

Warren Buffett's Berkshire Hathaway is set to plow more than $550 million into Snowflake when the cloud-data company goes public

<a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell&amp;hash=8122c716833601fc1471f79af063b104?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning.</a>Here's what you need to know before <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> open.1. <a href="https://markets.businessinsider.com/news/stocks/dating-app-bumble-preparing-ipo-worth-over-6-billion-2020-9-1029555219#">Dating app Bumble is preparing for an IPO worth between $6 billion and $8 billion.</a> Bumble, the location-based dating and networking app that allows women to make the first move, is prepared to go public as soon as early 2021, according to a <a href="https://www.bloomberg.com/news/articles/2020-09-01/dating-app-bumble-is-said-to-prepare-for-6-billion-plus-ipo?utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;utm_medium=social&amp;utm_content=business&amp;cmpid=socialflow-twitter-businesstwitter-business" target="_blank" rel="noopener">Bloomberg report</a>.<a href="https://markets.businessinsider.com/news/stocks/warren-buffett-scores-570-million-gain-japanese-stocks-2-days-2020-9-1029551264#"></a>2. <a href="https://www.businessinsider.com/hong-kong-richest-man-li-ka-shing-billion-zoom-stake-2020-9">Hong Kong's richest man holds an $11 billion stake in Zoom that makes up one-third of his total wealth.</a> Hong Kong's richest man, Li Ka-shing, currently holds an $11 billion stake in video-conferencing app <a href="https://markets.businessinsider.com/stocks/zm-stock?utm_source=markets&amp;utm_medium=ingestgest">Zoom Video Communications</a> that makes up one-third of his wealth, according to <a href="https://www.bloomberg.com/news/articles/2020-09-02/one-third-of-li-ka-shing-s-wealth-is-an-11-billion-zoom-stake?utm_medium=social&amp;utm_content=business&amp;cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic&amp;utm_source=twitterm_source=twitter">Bloomberg</a>.3.<a href="https://markets.businessinsider.com/news/stocks/market-volatility-tends-to-fall-in-september-in-election-years-2020-9-1029555322#"> Investors are bracing for choppy markets, but volatility typically falls before elections, one strategist says. </a>The upcoming US election has been cited as a key factor causing volatility for markets this month, but one strategist says that September will be calmer than many investors expect. 4. <a href="https://markets.businessinsider.com/news/stocks/why-warren-buffett-berkshire-hathaway-7-billion-5-japanese-stocks-2020-9-1029555556#">Why Warren Buffett's Berkshire Hathaway has a $7 billion bet on 5 Japanese stocks. </a>Warren Buffett's Berkshire Hathaway <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">recently disclosed</a> that it owns 5% of each of Japan's five biggest trading companies or "sogo shosha": <a href="https://markets.businessinsider.com/stocks/itochu-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest" target="_blank" rel="noopener">Sumitomo</a>. The positions, which Berkshire built over the past 12 months, were worth a <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-scores-570-million-gain-japanese-stocks-2-days-2020-9-1029551264?utm_source=markets&amp;utm_medium=ingest#est#" target="_blank" rel="noopener">combined $6.9 billion</a> as of Wednesday's close.<a href="https://www.businessinsider.com/investing-advice-portfolio-strategy-changes-post-covid-world-blackrock-2020-8"></a>5. <a href="https://www.businessinsider.com/stocks-to-buy-25-owned-outperforming-women-fund-managers-gs-2020-9">GOLDMAN SACHS: Female portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men. </a>So far this year, female portfolio managers are outperforming their male counterparts, according to a note from Goldman Sachs.6. <a href="https://www.businessinsider.com/tesla-stock-investing-bull-case-fund-manager-david-baron-interview-2020-9">David Baron's fund has returned 93% to investors in the last 12 months thanks to a Tesla bet 5 years ago. He told us why he thinks the electric-car behemoth has much further to run, despite its huge rally. </a>For years, Tesla stock didn't do much except spin its wheels.<a href="https://www.businessinsider.com/elon-musk-announces-neuralink-will-do-live-tech-demo-2020-8"></a>7. <a href="https://www.businessinsider.com/apple-amazon-google-pass-costs-digital-services-taxes-2020-9">Apple, Amazon, and and Google hike their developer and ad client fees to pass on the costs of paying new digital taxes in Europe.</a> Amazon, Apple, and Google will pass on the costs of new European taxes on their revenues to smaller developers and clients.<a href="https://www.businessinsider.com/stock-picking-strategy-7-part-model-market-legend-william-oneil-2020-8?r=US&amp;IR=TIR=T"></a>8. Stocks are mostly up. European stocks are sharply up between 1.8% and 2.3%. Asian stocks closed slightly down. Futures underlying the Dow 30, S&amp;P 500, and Nasdaq 100 are pointing to an increase between 0.6% and 1%. <a href="https://www.businessinsider.com/warren-buffett-airbnb-brian-chesky-get-rich-slow-ipo-filing-2020-8"></a>9. <a href="https://markets.businessinsider.com/earnings-calendar">Earnings coming in.</a> CrowdStrike Q2 2021 and Copart Q4 2020 earnings are due. 10. <a href="https://markets.businessinsider.com/economic-calendar">On the economic front. </a>EIA crude oil stocks change, the Fed's Beige Book and speeches from FOMC members Mester and Kashkari are due.

10 things you need to know before the opening bell

<ul><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> revealed 5% stakes in five Japanese trading houses on Sunday.</li><li>The positions in Itochu, Marubeni, <keyword id="6427662" type="ORGANIZATION" weightage="60" keywordseo="mitsubishi">Mitsubishi</keyword>, <keyword id="138513" type="COMPANY" weightage="60" keywordseo="Mitsui">Mitsui</keyword>, and Sumitomo were worth a combined $6.9 billion as of Wednesday's close.</li><li>The billionaire investor was likely attracted by their depressed valuations and sprawling operations, and may have seen them as hedges against <keyword id="22195" type="COMPANY" weightage="60" keywordseo="Inflation">inflation</keyword> risk and US dollar weakness.</li><li>Here are six reasons why Buffett may have invested.</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</li></ul>Warren Buffett's Berkshire Hathaway <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397">recently disclosed</a> that it owns 5% of each of <keyword id="6355311" type="UNKNOWN" weightage="60" keywordseo="japan">Japan</keyword>'s five biggest trading companies or "sogo shosha": <a href="https://markets.businessinsider.com/stocks/itochu-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Sumitomo</a>. The positions, which Berkshire built over the past 12 months, were worth a <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-scores-570-million-gain-japanese-stocks-2-days-2020-9-1029551264#">combined $6.9 billion</a> as of Wednesday's close.The famed investor may have backed the businesses because of their cheap valuations and varied operations, as well as the macroeconomic environment.Read More: <a href="https://www.businessinsider.com/saas-venture-capital-huntress-whistic-invest-cybersecurity-small-cities-2020-9" target="_blank" rel="noopener noreferrer">A scrappy VC reveals the 3 big advantages to finding startups in small towns across America instead of major tech hubs like Silicon Valley</a>Here are six potential reasons why Buffett is betting on the Japanese quintet:<h2>1. Bargain prices</h2>Buffett is renowned for identifying and <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> in businesses that are undervalued by the market. He lived up to his reputation with the five Japanese trading houses, as four of them trade at a significant discount to book value, meaning their market capitalizations are lower than their net assets.The investor may have turned to Japan after struggling to unearth value on home soil. <keyword id="6354298" type="DEFINITION" weightage="60" keywordseo="Stocks">Stocks</keyword> were far from a bargain this time last year, when Buffett began building the Japanese stakes, and have rebounded from the coronavirus crash in record time, thanks to unprecedented interventions by the US government and Federal Reserve.Buffett invested in the Japanese companies at "laughably low" prices, highlighting the "tremendous" value on offer in the island nation, Dalton Investments chief Jamie Rosenwald <a href="https://www.reuters.com/article/us-usa-investors-buffett-analysis/why-buffets-bet-on-japan-could-turn-on-higher-inflation-weakening-dollar-idUSKBN25R2XB">told Reuters</a>.<h2>2. Low risk</h2>Buffett may be investing in a foreign country, but he's deeply familiar with what the five trading houses do. They could be described as mini-Berkshires, as they're conglomerates focused on traditional industries such as natural resources and shipping and have business interests around the world.The Japanese quintet are also firmly established, generate plenty of cash, boast competitive moats to fend off rivals, and several pay sizeable dividends, Jefferies Japan analyst Thanh Ha Pham <a href="https://www.bloomberg.com/news/articles/2020-08-31/buffett-s-berkshire-takes-stakes-in-japanese-trading-companies">told Bloomberg</a>.Read More: <a href="https://www.businessinsider.com/tesla-stock-investing-bull-case-fund-manager-david-baron-interview-2020-9" target="_blank" rel="noopener noreferrer">David Baron's fund has returned 93% to investors in the last 12 months thanks to a Tesla bet 5 years ago. He told us why he thinks the electric-car behemoth has much further to run, despite its huge rally.</a>Japanese companies are also known for their honest accounting, making the nation a "natural fit" for Buffett, Pham said in <a href="https://www.bloomberg.com/news/articles/2020-08-31/buffett-s-1977-letter-hints-at-why-he-likes-japan-trading-houses">another Bloomberg story</a>.The five firms offer a "winning combination" of global operations and "fingers in a lot of pies at an attractive price," James Armstrong, president of Henry H Armstrong Associates, told Reuters. <h2>3. Teaming up</h2>Buffett appears to see the Japanese companies as not just investments, but also potential partners for Berkshire's subsidiaries.The investor highlighted the quintet's many joint ventures around the world in his statement on Sunday, and expressed hope that "opportunities of mutual benefit" will emerge.<h2>4. Preparing for inflation</h2>Inflation fears are rising as governments and central banks continue trying to spend their way out of the coronavirus crisis. Their efforts so far include mailing out stimulus checks, bailing out distressed companies such as airlines and cruise lines, and plowing trillions of dollars into financial <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword>.Central bankers have also slashed interest rates to almost zero, and Federal Reserve chief Jerome Powell <a href="https://markets.businessinsider.com/news/stocks/federal-reserve-inflation-jerome-powell-jackson-hole-comments-crisis-strategy-2020-8-1029540793">said last week</a> that inflation will be allowed to rise above the bank's previous 2% annual target for periods of time.Read More: <a href="https://www.businessinsider.com/stocks-to-buy-25-owned-outperforming-women-fund-managers-gs-2020-9" target="_blank" rel="noopener noreferrer">GOLDMAN SACHS: Female portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men.</a>Buffett may be betting on higher prices with his Japanese investments, Bill Smead, boss of Smead Capital Management, told Reuters."Buffett is migrating his investment to where you can create value through inflation," he said. "These are companies that will make more money if the price of oil [or] any input goes up."<h2>5. Dollar drop</h2>Worries about the pandemic's brutal fallout and stimulus deadlock have driven the US dollar to a <a href="https://markets.businessinsider.com/news/stocks/us-dollar-year-low-coronavirus-struggle-hedge-funds-short-2020-8-1029514034#">two-year low</a>, and a stronger Japanese yen means bigger profits for many Japanese companies.Buffett may have anticipated a US dollar decline and turned to Japan to diversify his currency exposure. Indeed, Berkshire sold 430 billion yen ($4 billion) worth of bonds last September — the biggest yen-denominated bond sale by a non-Japanese issuer in history.It sold another 195.5 billion yen ($1.8 billion) of bonds in April, meaning it has a total 625.5 billion of yen-denominated bonds outstanding. Berkshire cited that figure on Sunday as the reason it has "minor exposure to yen/dollar movements."<h2>6. Cash to burn</h2>Buffett is <a href="https://markets.businessinsider.com/news/stocks/why-warren-buffett-unhappy-berkshire-hathaway-record-137-billion-cash-2020-4-1029181516">constantly looking</a> for ways to responsibly spend Berkshire's massive cash pile, which totaled $147 billion <a href="https://markets.businessinsider.com/news/stocks/5-key-takeaways-warren-buffett-berkshire-hathaway-q2-earnings-2020-8-1029486853">at the last count</a>. His disclosure of the Japanese bets follows a flurry of purchases in recent weeks.For example, Berkshire struck a <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-strike-10-billion-deal-dominion-energy-2020-7-1029368062">$10 billion deal</a> to buy Dominion Energy's natural-gas assets in July, <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-bank-of-america-buying-years-pay-off-experts-2020-8-1029477087#">plowed close to $2.1 billion</a> into Bank of America stock in the 12 days to August 4, and appears to have repurchased <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-7-billion-stock-buybacks-3-months-2020-8-1029490985#">more than $7 billion</a> of its own stock between May and July.Buffett may have simply bought the Japanese stocks because he had the cash to spare and they met his investment criteria.

You Searched For "sogo shosha" and got 12 results

Warren Buffett's Berkshire Hathaway is in talks to partner with Mitsui, the Japanese trading group's CEO says

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Warren Buffett has $7 billion invested in 5 Japanese trading houses. Here's a look at the 'sogo shosha'

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Warren Buffett has $7 billion riding on Japanese stocks. He trashed them as bad investments in 1998

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Warren Buffett's energy bets in Japanese companies are turning out to be huge winners, with some up 100% since his initial investment

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Warren Buffett presses ahead with his big bet on Japan, upping his stakes in 5 trading houses

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Warren Buffett's Berkshire Hathaway has about $15 billion riding on Japanese stocks that have surged to multi-decade highs

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Warren Buffett's Berkshire Hathaway has boosted its bets on 5 Japanese titans - plus it wants to raise its stakes more and join forces on big deals

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Warren Buffett's Berkshire Hathaway now has $11 billion riding on 5 Japanese stocks, as it continues a record spending spree

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Warren Buffett scores a $570 million gain on his new Japanese stocks in just 2 days

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Warren Buffett's Berkshire Hathaway is set to plow more than $550 million into Snowflake when the cloud-data company goes public

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10 things you need to know before the opening bell

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Why Warren Buffett's Berkshire Hathaway has a $7 billion bet on 5 Japanese stocks

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