Warren Buffett’s Berkshire Hathaway scores $1.4 billion gain on 5 Japanese stocks in under 6 months

Desy Papper

Warren Buffett. REUTERS/Jim Young Warren Buffett’s Berkshire Hathaway has scored a $1.4 billion gain on its surprise investment in five Japanese trading houses. The famed investor’s conglomerate disclosed 5% stakes in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo at the end of August. Berkshire said it purchased the shares during the preceding 12 months. Read More: GOLDMAN […]

Warren Buffett.

Warren Buffett’s Berkshire Hathaway has scored a $1.4 billion gain on its surprise investment in five Japanese trading houses.

The famed investor’s conglomerate disclosed 5% stakes in ItochuMarubeniMitsubishiMitsui, and Sumitomo at the end of August. Berkshire said it purchased the shares during the preceding 12 months.

Read More: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

The five stocks have rallied an average of 23% since then, boosting the combined value of Berkshire’s stakes from below $6.4 billion to nearly $7.7 billion in under six months.

However, the quintet of Japanese stocks has trailed the Nikkei 225. The benchmark index has jumped by about a third since the end of August, and surged past 30,000 on Tuesday for the first time since 1990.

Buffett’s Japanese bets are unusual, as the investor has mostly preferred American companies such as Apple, American Express, Bank of America, and Coca-Cola throughout his career.

Read More: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months

He was likely attracted by the trading companies’ depressed valuations, their similarities to Berkshire, and the potential for joint ventures. He may also see them as hedges against inflation and a weaker dollar, and probably jumped at the chance to tap his company’s vast cash reserves.

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