Warren Buffett’s holding company Berkshire Hathaway (BRK.B) has increased its stake in five Japanese trading firms to an average of more than 8.5% each.
The companies involved are Itochu, Marubeni, Mitsubishi (MSBHF), Mitsui and Sumitomo. Buffett now has more money invested in Japan than any country outside of the U.S.
Buffett has said he intends to hold the Japanese investments for the long-term but only plans to purchase a maximum of 9.9% of each of the five trading firms.
Buffett visited Japan in April of this year to announce that Berkshire Hathaway was increasing its investment in the Japanese trading houses to 7.4%. It has now raised that stake to 8.5%.
The five firms are the largest of Japan’s so-called “sogo-shosha,” or general trading companies, and focus on diversified long-term investments that prioritize value and free cash flow.
The trading firms are essential to Japan’s imports of energy, minerals and food, as well as exports of finished products.
Berkshire Hathaway’s Class B stock has risen 25% over the last 12 months to trade at $338.31 U.S. per share.
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