Berkshire Hathaway Purchases Stakes in Japan’s 5 Leading Trading Companies

Warren Buffett - the chairman and CEO of Berkshire Hathway announced that his company had purchased an over 5% stake in each of Japanese leading trading companies: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. According to Friday’s closing prices for these companies, a 5% stake in each can be valued at approximately $6.25 billion.

The holdings were acquired over a period of one year, through regular buys on the Tokyo Stock Exchange, and are intended to be held for the long term, with Berkshire's potential to increase its holdings in any of the companies up to a maximum of 9.9%, depending on price. 

The investment in the trading houses can be considered reasonable and in Berkshire’s style, as the company is already known for its long-term holdings in companies like Coca-Cola, American Express and Moody’s - each covering a span of multiple decades.

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