Berkshire Hathaway Increases Stakes In Japanese Trading Firms

Warren Buffett’s Berkshire Hathaway (BRK.A/BRK.B) has increased its stake in Japanese trading houses Mitsubishi (MSBHF) and Mitsui (MITSY).Berkshire Hathaway raised its stake in Mitsubishi to 10.2% from 9.7% previously. Buffett’s holding company also boosted its position in Mitsui, though it is not clear by how much.In all, Berkshire Hathaway has invested in five of Japan’s trading houses. Its investments also include Marubeni (MARUY), Itochu (ITOCY) and Sumitomo (SMFG). Buffett opened the positions in 2019. The Japanese trading houses are diversified conglomerates that act as intermediaries for trade, investments, and business development in sectors such as food, energy and finance.Berkshire Hathaway’s increased stakes are not a surprise as Buffett earlier this year asked a Japanese regulator for permission to increase his stakes beyond 10% in all five firms. In Berkshire’s annual report this year, Buffett explained why he bought the five Japanese trading houses in the first place.“We simply looked at their financial records and were amazed at the low prices of their stocks. As the years have passed, our admiration for these companies has consistently grown,” wrote Buffett. Buffett added that Berkshire Hathaway plans to hold its positions in the Japanese trading houses “for many decades.”Additionally, Buffett noted that Berkshire Hathaway’s dividend income this year from the five Japanese trading houses will total $812 million U.S. Berkshire Hathaway’s more affordable Class B stock has gained 10% this year to trade at $495.72 U.S. per share.