Berkshire Hathaway’s holdings in five major Japanese trading houses have reached an average of 8.5%.
Berkshire Hathaway has added to its existing holdings in five major Japanese trading houses, bringing its average ownership of the companies to more than 8.5%. The investment firm, led by prominent investor Warren Buffett, aims to further add to its positions in the future.
Warren Buffet’s Berkshire Hathaway Remains Bullish on Japanese Market
On Monday, Berkshire Hathaway announced that it had purchased additional shares in five top Japanese trading houses, including Itochu, Marubeni, Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp, according to a report from Nikkie Asia. The report added that Berkshire’s holdings in four out of the five companies now surpass 8%.
More specifically, Berkshire’s holdings in Mitsubishi Corp’s outstanding shares now stand at 8.31%, up from 6.59%. The shareholding of Mitsui & Co., Itochu, Marubeni, and Sumitomo Corp. also rose from 6% to 7-8%. Berkshire now holds around 2.8 trillion yen in shares.
In a comment to Nikkie Asia, Buffett reportedly reiterated its intention to hold these stakes for the long term. He even claimed that he wants to own up to 9.9% of the five companies, implying that the billionaire aims to keep adding to his holdings in Japan.
Investors Flock to Japan after Buffet Reveals Investment
In April, Buffett declared that he possessed more stocks in Japan than any other country apart from the US. He added that Berkshire, which started purchasing shares in all five of Japan’s biggest trading houses almost three years ago, had expanded each stake to 7.4% by April.
The announcement led to increasing interest in Japanese equities. Throughout April, foreign investors purchased a net $15.6 billion worth of Japanese shares, the highest monthly level in several years, according to data from the Japan Exchange Group. The data showed they have continued to add to their positions in May.
This also triggered a rally in Japanese equities, which reached a 33-year high by mid-May. “This market has just been long, long overlooked,” Kei Okamura, a Japanese equities portfolio manager at Neuberger Berman, said at the time. “It’s a very long taxi runway, but when the plane takes off, it takes off.”
Nevertheless, Japan Nl225, commonly called Nikkei Stock Average, or Nikkei 225, is up 29.54% YTD. The index is up around 3% over the past 5 days and more than 7% over the past month.
Japan’s Crypto Ecosystem Resumes Growth
Last week, Tokyo-based global information technology solutions company Fujitsu revealed that it aims to launch the Fujitsu Web3 Acceleration Platform on June 30. The platform will leverage ConnectionChain blockchain technology to connect different economies and streamline cross-border securities settlements in regions such as Japan, China, South Korea, and other Southeast Asian nations.
Furthermore, Fujitsu is one of the Japanese companies involved in establishing a “Japan Metaverse Economic Zone.” The company and 10 other Japanese tech firms have agreed to advance Japan’s metaverse plans by building an open metaverse infrastructure called “Ryugukoku.”
Japan recently increased its regulatory measures to tackle anti-money laundering (AML) issues. In a move to align the country’s legal framework with the global standards of the FATF, Japan’s cabinet implemented tougher AML regulations last month, requiring the tracking of all cryptocurrency transactions.
One significant element of this revised framework is enforcing the “travel rule.” Financial institutions must now disclose information on customers who conduct crypto asset transactions, such as their names and addresses. This ensures full disclosure of customer information between financial institutions.
—
Originally Posted June 19, 2023 – Berkshire Hathaway Adds to Japanese Holdings Amid a Booming Stock Market
Disclosure: Ruholamin Haqshanas has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Disclosure: The Tokenist
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult a licensed financial advisor prior to making financial decisions.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from The Tokenist and is being posted with its permission. The views expressed in this material are solely those of the author and/or The Tokenist and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.