On Monday, billionaire investor Warren Buffett’s Berkshire Hathaway (BRKa.N) increased their interest in Japan’s five largest trading firms to over 8%, highlighting and boosting Japan’s stock market.
In 2020, Berkshire disclosed investments in Itochu (8001.T), Marubeni (8002.T), Mitsubishi Corp (8058.T), Mitsui & Co (8031.T), and Sumitomo (8053.T) with plans to hold them long-term and raise them to 9.9%.
Buffett’s investments and confidence in Japan have drawn attention to improving economic circumstances and shareholder-friendly corporate governance measures that have helped the Nikkei share average soar.
Berkshire’s decision came after Friday’s 1% decline, but ten weeks of consecutive advances have lifted the Nikkei by 28% this year.
Berkshire claimed its ownership averages 8.5% at the companies, and the aggregate value of the investments is the largest of any Berkshire-held public stocks outside the U.S.
Japanese trading houses, called “sogo shosha,” act as mediators and provide logistical support.
Marubeni shares are up 62% and have quadrupled since 2020. The Berkshire announcement helped Nikkei futures recover.
