Buffett's Berkshire takes stake in Japan trading firms

[TOKYO] Warren Buffett's Berkshire Hathaway has acquired five per cent stakes in five leading Japanese trading companies, it said in a statement on Monday.

The stakes are valued at more than US$6 billion according to Bloomberg News, and were acquired over approximately a year through regular purchases on the Tokyo Stock Exchange, Berkshire said.

The stakes are in Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co and Sumitomo Corp, and Berkshire said it plans to "hold its Japanese investments for the long term".

Berkshire said it could increase its holdings up to 9.9 per cent in any of the five firms, but added it would not exceed that cap "unless given specific approval by the investee's board of directors".

Berkshire Hathaway is the holding company of Mr Buffett, who is considered one of the world's savviest investors and has amassed a US$72-billion fortune - the world's fourth-largest, according to Forbes magazine.

But even he has suffered setbacks during the pandemic, particularly on investments in the airline industry.

In the statement, Mr Buffett said he was "delighted" to participate in the Japanese firms and he hoped there would be "opportunities of mutual benefit".

News of the purchases sent stock in all five firms soaring, with Marubeni Corp up 10.18 per cent to 643.7 yen (S$8.28), Sumitomo Corp up nine per cent to 1,373.5 yen, Mitsubishi Corp up 8.72 per cent to 2.536 yen, Mitsui & Co up 6.47 per cent to 1,898.5 yen and Itochu Corp up 4.49 per cent to 2,731.5 yen.

The Nikkei as a whole was higher, up 1.20 per cent at the open on Monday.

AFP