Buffett increases his holdings again! Berkshire Hathaway's stake in Mitsui & Co. exceeds 10%, and Japanese trading company stocks rise collectively
Warren Buffett's Berkshire Hathaway has increased its stake, becoming a major shareholder of Mitsui & Co., with its shareholding ratio exceeding 10%. This move demonstrates Buffett's long-term investment confidence in Japanese trading companies. Following the announcement, Mitsui & Co.'s stock price rose, and the stock prices of other Japanese trading companies also climbed. Buffett began investing in Japan's five major trading companies as early as 2020 and is expected to further increase his holdings in the future. Analysts believe that Buffett's continued accumulation will drive a strong rise in the Japanese trading company sector
According to the Zhitong Finance APP, Warren Buffett's Berkshire Hathaway has become the major shareholder of Mitsui & Co., Ltd. by increasing its stake. This latest move demonstrates his strong optimism about the long-term investment appeal of Japanese general trading companies.
Mitsui & Co. announced on Monday that, in terms of voting rights, the American investment giant's stake in the company has exceeded 10%, and there is a possibility of further increasing its holdings in the future.
Following the announcement, Mitsui & Co.'s stock price continued to rise, reaching a maximum increase of 2.2% after an initial gain in the morning session. On the same day, the stock prices of other general trading companies in the Tokyo stock market—Mitsubishi Corporation, Itochu Corporation, Marubeni Corporation, and Sumitomo Corporation—also rose in tandem.
Buffett first disclosed in 2020 that he had acquired shares in Japan's five major general trading companies (also known as "sogo shosha"). These trading companies have a wide range of business operations, covering various fields such as liquefied natural gas and salmon farming. Thanks to Buffett's "endorsement," their stock performance has consistently outperformed the Tokyo Stock Exchange Index (Topix).
According to Buffett's annual letter to shareholders released in February this year, Berkshire initially planned to keep its stake in these Japanese trading companies below 10%, but the relevant Japanese companies have agreed to "moderately" relax this holding limit. Previously, Berkshire's stake in Mitsubishi Corporation had also surpassed the 10% threshold.
SBI Securities analyst Ryunosuke Shibata stated, "Although the news of Berkshire increasing its stake in Mitsui & Co. is not surprising after its previous increase in Mitsubishi Corporation shares, the 'Oracle of Omaha's' continued accumulation undoubtedly provides strong upward momentum for the Japanese general trading sector."
The diversified business nature of Japanese general trading companies allows them to better cope with the cyclical fluctuations in commodity prices compared to their overseas counterparts. At the same time, these companies are also continuously increasing their investments in shareholder returns
