Billionaire investor Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) disclosed additional stakes in five of the largest Japanese trading firms. Per the data released, as of June 12, Berkshire’s unit, National Indemnity Company, owned 7.4% of Itochu, 8.3% of Marubeni and Mitsubishi shares each, 8.1% of Mitsui, and 8.2% of Sumitomo stock. Now, reports note that National Indemnity holds an average position of over 8.5% in the top five trading houses.
Buffett’s Fondness for Japanese Stocks is Growing Fast
Recently, the Oracle of Omaha shared his intent to shift his focus to Japanese stocks as growing concerns of political instability between the U.S. and China could hinder businesses in both nations. This instability was the sole reason for Berkshire trimming its stake in chip maker Taiwan Semiconductor (NYSE:TSM), mentioned Buffett in Berkshire’s annual shareholder meeting held on May 6.
At the time, Buffett also stated that his conglomerate would steadily increase stakes in the five trading companies to not more than 9.9% each. Even so, the jump in his position sizes has come sooner than expected.
Berkshire intends to hold these Japanese investments over the long term. Also, the company noted that as of date, the combined Japanese investments, valued at approximately 2.8 trillion yen, are larger than any other investments held outside of the U.S. These so-called sogo-shosha (general trading) companies trade a variety of goods, and their businesses are somewhat similar to that of Berkshire’s, focusing on long-term diversified investments.
Since Buffett’s stock disclosure in April, shares of these five trading companies have gained more than 30%.
Is Berkshire Hathaway Stock a Buy, According to Analysts?
On TipRanks, BRK.B has a Moderate Buy consensus rating based on one Buy rating. Additionally, Berkshire Hathaway’s price forecast of $377 implies 11.4% upside potential from current levels. Meanwhile, BRK.B stock has gained 9.2% so far this year.
