Buffett expressed his intention to increase holdings, Japanese trading companies surged collectively
Mitsubishi Corporation had the largest increase, rising by 8.7% at one point, followed closely by Marubeni Corporation, while Mitsui & Co., Itochu Corporation, and Sumitomo Corporation all performed strongly. Previously, Buffett stated that he plans to hold shares in these five major trading companies for decades and has committed to supporting their boards
After being "certified" by Buffett again, the stock prices of Japan's five major trading companies surged against the market trend.
After the Japanese stock market was closed on Monday, on Tuesday, February 25, the stock prices of Japan's five major trading companies quickly rose after the opening and maintained a soaring trend throughout the day. Among them, Mitsubishi Corporation saw the largest increase, rising by 8.7% at one point, followed closely by Marubeni Corporation with an increase of nearly 8%, while Mitsui & Co., Itochu Corporation, and Sumitomo Corporation also performed strongly.
Meanwhile, the Nikkei 225 index fell by more than 1%.
Compared to peak stock prices, there is still room for growth, with strong risk resistance due to diverse business operations
In the latest shareholder letter released last Saturday, Buffett stated that Berkshire Hathaway's investment in the five Japanese trading companies (Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo) is continuously increasing, with plans to hold these shares for decades and a commitment to support their boards.
Norikazu Shimizu, an analyst at IwaiCosmo Securities Co., commented:
"Currently, the stock prices of the five major trading companies are far below their peak, and Buffett may see this as an opportunity to increase his holdings."
"Although the changes in tariff policies under the Trump administration bring uncertainty, the trading companies are involved in a wide range of business areas, which Buffett may consider a safe investment choice."
It is reported that Japan's five major trading companies have a wide range of operations, including overseas oil and gas production, salmon farming, television shopping, and more. Since Buffett first announced his investment in these five trading companies in 2020, the stock performance of these companies has outperformed the Nikkei 225 index.
In the shareholder letter, Buffett also praised the Japanese trading companies for timely increasing dividends, prudently repurchasing stocks, and their more restrained executive compensation policies compared to their American counterparts.
The Japanese trading companies welcomed Buffett's favor and actively explored future cooperation opportunities. Marubeni stated in an email:
"This proves the high value of the entire trading company industry, including our company."