Key Points
- Weeks ago, Warren Buffett’s Berkshire Hathaway was offloading some of its stocks selling $13.3B worth of stocks in Q1 2023.
- Now, Berkshire Hathaway is going hard on Japanese stocks after its gamble in Japan’s markets raked in over $17B
Berkshire Hathaway seems pretty convinced by Japanese markets after bagging over $17B to add its stakes in five different Japanese trading firms. Berkshire Hathaway said on June 19 that its wholly-owned subsidiary National Indemnity Company had increased its stake in five Japanese trading firms to average more than 8.5%.
Berkshire Hathaway filling its bags again
Berkshire has confirmed that it’s upping its stakes in five Japanese companies: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. It said it intends to hold its Japanese investments long-term, with CEO Warren Buffett pledging that the company will only purchase up to 9.9% of any of the five firms.
This purchase was made by National Indemnity Company, a subsidiary of Berkshire Hathaway, with a drive to average the stakes in the five firms at 8.5%. The company said that the aggregate value of the five interests surpasses that of Berkshire-holed stocks in any country outside the U.S., making them highly promising.
As such, the company is looking at the investment long-term. Warren Buffett visited Japan in April 2023 and promised Berkshire Hathaway would boost its investments in various Japanese trading houses to 7.4%. It was then disclosed that he had hit this level in August 2022.
These five stocks almost tripled after Warren Buffett started investing in them. They have gained an average of 181% ever since his original disclosure. That led to an upshot from $6 billion to about $17 billion in the present day. Now, Japanese stocks rank as Berkshire’s largest position.
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