🎁ETFs to Follow 93-yr-old Warren Buffett to Increase Japan Invests?

🎁Do you have investments related to Japan Market?Is current a good timing to invests Japan market related opportunities?

$iShares MSCI Japan ETF(EWJ)$ $Aberdeen Japan Equity Fund, Inc.(JEQ)$ $WisdomTree Japan SmallCap Dividend Fund(DFJ)$ $WisdomTree Japan Hedged Equity Fund(DXJ)$

After 11 years, the 93-year-old Warren Buffet will visit Japan again, and said that he will continue to be optimistic about Japanese stocks and consider increasing his bets on Japan.

Buffett's investment in Japan is mainly reflected in two directions: stocks and the issuance of yen bonds.

1. Buffett continues to increase holdings of Japan's five major trading companies

In August 2020, $Berkshire Hathaway(BRK.B)$ $Berkshire Hathaway(BRK.A)$ Chairman Buffett invested approximately US$6.1 billion to establish positions in Japan's five major trading companies, including $Itochu Corp.(ITOCF)$ , $Mitsubishi UFJ(MUFG)$, $Sumitomo Mitsui(SMFG)$, and $Marubeni Corp.(MARUF)$ . He added about $2.4 billion to his holdings in November 2022, and those positions are now worth nearly $13 billion.

The recent 4 year performances of the 5 japan stocks of below:

Big Gains from Bloomberg

The holdings of $Berkshire Hathaway(BRK.B)$ in Japan's five stocks has risen to 7.4% from about 5% in 2020. These holdings became the Buffett company's largest investment outside the United States. And luckly, Buffett has made about $4.5 billion in profits from positions since 2020.

2.Buffett's yen bond investment returns are remarkable

It is worth to mention that besides the five major stocks, Buffett is willing to buy Japanese stocks:

"The next Japanese stock investment object is always on the mind, depending on the price."

As early as 2019, Berkshire Hathaway issued yen bonds for the first time in Japan, and with a bond issuance scale of up to 430 billion yen, it became one of the largest overseas issuers of yen bonds in history.

In 2020, Berkshire Hathaway issued 195.5 billion yen in bonds. In the recent two years, Buffett has remained quite active in the Japanese bond market. The latest issuance of benchmark yen bonds was in December 2022, with a scale of 115 billion yen.

As of 2022, the scale of yen-denominated notes and loans on $Berkshire Hathaway(BRK.B)$ 's books has increased to over $7.8 billion. In contrast, the scale of notes denominated in US dollars, euros, and British pounds is shrinking.

Source from Financial Times

3.Three reasons on why Buffett invests Japan positively against the market

1)Bufett: "I firmly believe that in 20 or 50 years, both Japan and the US will be stronger than they are now."

Buffett's main reason for investing in Japan is the desire to diversify his investments internationally. In its letter to shareholders issued in February 2023, it reveals its concerns about the unexpected tense.

Berkshire Hathaway holds a market value of $300 billion in listed stocks, most of which are U.S. stocks. 40% depend on $Apple(AAPL)$ 's stock. While Buffett believes in the growth potential of the United States, over-concentration of investments creates risks.

Buffett regards the fiscal imbalance in the United States as a problem, and lists financial chaos and global recession as business issues. Buffett also mentioned the importance of protecting shareholder assets as much as possible from runaway inflation.

  2)Japanese stocks are undervalued rarely seen in the world.

“If the stock was not underestimate, don't invest" is Buffett's investing philosophy.

Lorraine Tan, Morningstar's head of Asia equity research, said Buffett's is a reminder that attractive and affordable investment opportunities exist in Japan:

According to his preferences, he looks for companies that are well managed and enjoy what he considers an undervalued economic moat.

The low PBR (price-to-book ratio) of Japanese stocks was pointed out as a stock price indicator indicative of undervaluation. Lower than 1x indicates that the stock price is below the value that would be gained by dissolving the business.

More than 50% of listed companies in Japan are below 1 times, falling into an underestimation rarely seen in the world.

3)Recognize the quality on the company's operating quality

But underestimation is not the only determining factor. Buffett said, "I will pay attention to the business it is engaged in and observe how the business will develop."

So the third reason on why Buffett buys Japanese stocks may regarded to stocks quality. Buffett shared:

"Operators have made good judgment" and "we rate very highly the fact that more capital is being created for dividends and share repurchases of Japan companies".

Buffett has made his wealth through long-term investments in great businesses for like $Coca-Cola(KO)$. On the other hand, there are not a few cases where $IBM(IBM)$ gave up.

Regarding Japanese stocks, Buffett also pointed, "If you think there is a problem with the company‘s operation, you should not buy it."

Investments in Japanese stocks by experienced investors like Warren Buffett will also support the management of the company‘s business, accompanied by shareholders who strictly monitor operations according to world standards.

A triple win situation.

Monthly chart


🎁Questions for Tigers

Do you have investments related to Japan Market?(Every Valid comment by April 17th will receive 5 Tiger Coins)

# 💰 Stocks to watch today?(29 Apr)

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  • koolgal
    ·2023-04-14
    TOP

    🌟🌟🌟I am currently looking to invest in $iShares MSCI Japan ETF(EWJ)$  which is the largest Japanese- centric ETF with assets over over USD 10 billion.  In just 1 trade, I gain access to the largest and strongest Japanese companies like Toyota, Sony, Mitsubishi UFH Financial Group and many more. 

    In the past 5 days, it has gone up 1.8% and 7.6% Year To Date.  EWJ ETF is managed by Blackrock under its iShares Brand.  The current dividend yield is 1.14% paid half yearly. 

    I believe that $iShares MSCI Japan ETF(EWJ)$  would be a great way to get into the Japanese market at a low cost, minimising my risk and gives me great diversification too. 

    @MillionaireTiger  


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    • koolgalReplying toElla Hill
      Also would greatly appreciate if you can support me by clicking "like" on my posts.  I will also do the same for you. Thanks for your help. 😍😍😍
      2023-07-17
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    • koolgalReplying toElla Hill
      I will tag you @Ella Hill whenever I find an event that rewards posts with Tiger Coins.  You can also tag me if you find such events. That way we both gain more Tiger Coins. 😍😍😍
      2023-07-17
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    • Ella HillReplying tokoolgal
      How do I start?
      2023-07-16
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  • airui
    ·2023-04-12
    TOP
    I am waiting to buy ps5 when GTA6 is out. $Sony(SONY)$ will be the first Japan stock in my consideration.
    hope regenerative AI can help $Take-Two(TTWO)$ speed up the making of GTA6
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  • LMSunshine
    ·2023-04-12
    I don’t have any 🇯🇵 stocks yet but will definitely research into those mentioned❣️Friends comment in post for 5 coins🤗 @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose @DMTrader @BettyT @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @fxaw @Kok @Agxm @Dodonan @BubTigger @Niskil @OddEyeCircle @StarAce @zerolih @WuDi @Asphen @MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @Decromer @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @Bons @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @icycrystal @KryZ @Alupigus @tigernoob @MojoStellar @aiyoh79 @drandy @eeth @Zack44 @Cyberguard @kaite @BlueDragon @Tonyoh @AlfonsoDex @nerdbull1669 @InvisibleTig @AlanTiger @kwk @InvisibleP @miaomiao007 @TigerHulk @MGOH @Alconies @justforcoins @cubinvestor @我i168 @Zacv @ZeroG @JennyChiang @Star0331
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  • LMSunshine
    ·2023-04-12
    I don’t have any 🇯🇵 stocks yet but will definitely research into those mentioned in your AWES❤️ME post @MillionaireTiger THX LOADS❣️ Friends comment in post for 5 coins🤗
    @SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @MHh @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @Joker_Smile @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @Ericdao @StickyRice @StarLuck @Shyon @Success88 @kungpao @CL Wong @Derrick 1234 @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Tigress02 @Viv22 @aunteenat @Cory2 @airui @0QH @Cris0 @Brocco @AhGong @deal2deal @Ccl2 @Lcc73 @HLPA @WanEH @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Cory2 @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS @HSTew @Kerrisdale @PhilipChow @alylady @moliya @maricel
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    • ZarknessReplying toLMSunshine
      Yeah jiayou buddy … 😘
      2023-04-14
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    • LMSunshineReplying toZarkness
      Sure will post if I get back into the mood😅
      2023-04-13
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    • Zarkness
      Can share ur findings if u have ? ThNks buddy
      2023-04-13
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  • GoodLife99
    ·2023-04-12
    very benefited from this article!! [Like]
    Has been thinking for Japan market, especially topic discussed among frens from their recent Japan trip this year! The Tourism mkt is booming!
    $Marubeni Corp.(MARUF)$ is under my watchlist list now!
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    • GoodLife99Replying toShyon
      [Love] [Love] [Love]
      2023-04-12
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    • Shyon
      😍😍😍
      2023-04-12
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  • Shyon
    ·2023-04-12
    Never explore or invest in Japan equities market yet. Good article to kick start with some basic knowledge about japan market. @LMSunshine @Aqa @Universe宇宙 @GoodLife99 @HelenJanet @rL
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    • Universe宇宙
      [ShakeHands]
      2023-04-12
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    • GoodLife99
      yes!!!! go go exploring!
      2023-04-12
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  • Bons
    ·2023-04-13
    I don't have any stocks in Japan Stock Market. I do believe that US and Japan will be stronger in the next 5 years. however, it's quite hard to enter Japan Stock Market as a retailer. my friend has fried it and failed in the security checking.
    share yours @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @kungpao @wine18 @cindyft @Xian789 @MTok
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    • BonsReplying toKYHBKO
      yep the pyramid structure of the age will be a major concern for countries which experience a demography bonus for now
      2023-04-13
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    • KYHBKO
      both countries have different challenges.  For Japan, the ageing population is of great concern.  For US, they have too many internal and structural issues.
      2023-04-13
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    • BonsReplying toKYHBKO
      yes, and it has a global scope. that's the reason it can grow at a significant pace
      2023-04-13
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  • Tigress02
    ·2023-04-12
    Japanese car brands include Toyota, Honda, Nissan, Mazda, Subaru, Mitsubishi, Suzuki, Isuzu, Daihatsu, and Mitsuoka. I might invest in Toyota, Honda and Mazda oneday. They are the most readily comes to mind.
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  • Success88
    ·2023-04-12
    I do have Japan stock. If Tiger App have i would like to buy sumitomo mitsui banking corporation and Asahi Beer and will stick to long term inveastment cos l love Asahi product like beer. soft drink
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  • Success88
    ·2023-04-12
    I do not have Japan stock. If Tiger App have i would like to buy sumitomo mitsui banking corporation and Asahi Beer and will stick to long term inveastment cos l love Asahi product like beer. soft drink
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  • icycrystal
    ·2023-04-12
    currently, I do not invest in Japan market but given the opportunity, I may consider @vy @Wei wei @hyhy @Kun kun @BYBYSG what about you guys [smile] [smile] [smile]
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  • JLSE
    ·2023-04-13
    //@MasterStonker: I am holding Japanese ¥en and plan to visit Japan more often. Love the culture and proper life there.👍👍👍
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  • MasterStonker
    ·2023-04-12
    I believe in Japan and the Japanese people with their strong culture and discipline including their mindset to designing stuff to improving our daily lives. Just pop into Daiso. Enough said.
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  • Ericdao
    ·2023-04-12
    I don't trade individual japan counter but only the index occasionally when I see opportunity. WB fund is too large, he need to move out of US to avoid any shock in any individual countries. For small investors like us, diversification among different companies already used up most of the fund, so basically can't allocate more for Japan. Too diversified will also lead to lack of focus. My preference is still not to over diversified but stay focus on the few good counter so that we could react faster
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  • highhand
    ·2023-04-12
    Only in Asia fund, but small allocation <10%
    Japan equities are a thing of the past. Lagging economy for decades.
    In funds, at least the fund manager can pick some good companies.
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  • 我目前没持有日本市场的投资标的,因为我对日本央行未来的新行长植田和男持观望态度,植田和男在其论文中反复提及负利率对于社会的副作用,所以市场认为他上任后会将政策转鹰,哪怕只是略微转鹰,对于日本股市都不是什么好消息,因为日本股市的最大买家就是日本央行。当然,巴菲特是奔着日本股票某些标的的高现金流回报率去的。
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  • aunteenat
    ·2023-04-13
    I don't have investments in Japan market - I do have exposure in $Betashares Asia Technology Tigers(ASIA.AU)$ and $Betashares India Quality ETF(IIND.AU)$ bc growth opportunities.
    ..but Buffett got me reassessing [Smug] [Glance]
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  • nerdbull1669
    ·2023-04-13
    I do not invest in Japan stocks but do invest in unit trust fund which invest into japanese equity, the return have been quite promising after the pandemic. Overall it's a good gain investment!
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  • 0QH
    ·2023-04-12
    japan has experienced deflation for many years. about time for its value to rebound. Politically, US will definitely prop up its biggest ally in asia "again" to compete against China. Buffets venture could be the start. I like Japanese car, probably will start looking at toyota and honda.
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  • GoodLife99
    ·2023-04-12

    Have you ever think to invest in these Japan stocks which part of Warren Buffet's portfolio?

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