Warren Buffett's Berkshire Hathaway buys 5% stake in leading Japanese enterprises

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Warren Buffett's Berkshire Hathaway buys 5% stake in leading Japanese enterprises

Business mogul Warren Buffett’s company Berkshire Hathaway has reportedly invested in five major Japanese businesses. The American billionaire and philantrophist who turned 90 on 31st August announced his latest business venture on his birthday, stating that his company has bought a little over five per cent stake in these business houses.

These companies are Mitsubishi Corp., Itochu Corp., Mitsui & Co., Marubeni Corp., and Sumitomo Corp.

Warren Buffett's new investment rakes in more moolah

According to reports, the said buying of shares had taken place over the course of a year through frequent share purchases at the Tokyo Stock Market.

On Friday’s market closing, Buffett’s stake in these companies amounted to about $6.25 billion, in each of the five business entities. I am delighted to have Berkshire Hathaway participate in the future of Japan and the five companies we have chosen for investment.

I hope that in the future there may be opportunities of mutual benefit,” Buffett said about his shares purchase, as quoted by CNBC. The terms of the share purchase indicate that Berkshire Hathaway cannot acquire more than 9.9 per cent stake in these five companies.

However, if any of the companies’ board of directors approved further stock purchase, Berkshire Hathaway could increase its stake in the company (or companies). The five per cent ownership itself is seen as a long-term investment in the quintet of companies since they hold heft in controlling of the import-based economic and commercial activities in Japan.

Since Japan majorly imports goods and products, these companies have their say in almost all sectors from food to power, to textiles and even to metals. They also opened up their business models and diversified their portfolio into international markets and their doing so, in turn, meant that they also became susceptible to highs and lows on a macro level.

Apart from this investment, Warren Buffett’s Berkshire Hathaway also has about $6 billion in different yen bonds whose maturity is spread across 27 years, beginning in 2023. Buffett himself is the world's seventh richest man with his personal fortune accounting for around $79 billion.