Berkshire Hathaway, the investment vehicle of Warren Buffett, the 90-year-old investor known as the ‘Oracle of Omaha’, has reported this Monday that its subsidiary National Indemnity Company has taken positions slightly above 5% in the Japanese firms Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo, Japan’s five largest commodity trading companies.
“These shares were acquired over a period of approximately twelve months through regular purchases on the Tokyo Stock Exchange,” the US firm revealed. The aggregate valuation of its investments in these five companies reached 6.3 billion dollars (5,295 million euros) on Monday.
The information about Buffett’s entry into the capital of these companies, announced to the market before the opening of the session on the Tokyo Stock Exchange, has boosted the price of the five companies. In this way, the titles of Mitsubishi have scored a rise of 7.72%; those of Mitsui of 7.35%; Sumitomo 9.09%; Itochu 4.19% and Marubeni 9.48%.
In its statement to the market, the US investment firm has expressed its intention to “maintain its Japanese investments in the long term” and, depending on the price, Berkshire Hathaway has advanced that it can increase its stakes up to a maximum of 9.9% in any of the five investments.
However, it has warned that Warren Buffett, CEO of Berkshire Hathaway, has committed that Berkshire Hathaway will only make purchases up to a 9.9% stake in any of the five Japanese companies and will not exceed that threshold unless it is provide specific authorization by the board of directors of the investee.
The ‘Oracle of Omaha’ has expressed satisfaction with these investments, noting that the five companies have numerous joint ventures around the world. “” I am delighted that Berkshire Hathaway is involved in the future of Japan and the five companies we have chosen to invest in (…). I hope that in the future there are opportunities for mutual benefit, “he said.