On Tuesday, the stock prices of Japan's five major trading companies rose collectively after regulatory filings showed that Warren Buffett's Berkshire Hathaway had increased its stake in these companies.
The filings revealed that Berkshire Hathaway had raised its holdings in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo by more than 1 percentage point each, with its stakes now ranging from 8.5% to 9.8%. Boosted by this news, the stock prices of these five companies rose at least 4% after the market opened, with Itochu and Marubeni seeing the largest gains of 4.12% and 4.55% respectively.
Buffett stated that these five firms are Japan's largest "sogo shosha" or diversified trading companies, engaging in various industries both domestically and internationally, with an investment approach similar to that of Berkshire Hathaway. In his annual shareholder letter released in February, he disclosed plans to continue increasing investments in Japanese stocks, particularly in these trading companies.
Berkshire Hathaway first began purchasing shares in these five companies in the summer of 2019. By the end of 2024, its total holdings in the Japanese market amounted to $23.5 billion, with a total investment cost of $13.8 billion. This long-term investment strategy indicates Buffett's optimistic view of the Japanese market and his continued commitment to expanding his investments there.
