🎁"Oracle's Gambit: Buffett's Strategic Japan Investments"

Tiger_story
05-03

Watch the 2024 Berkshire Hathaway annual shareholders meeting on Saturday, May 4?


Every May, the Berkshire shareholders meeting has become a feast for global value investment pilgrimage.

The company's performance returns, Warren Buffett and Charlie Munger's letters to shareholders, and valuable sharing on the spot are studied by the investment community around the world.

Although Berkshire's investment results have not yet been released, I believe it must be a good result, because Buffett's investment in Japan has also been quite successful in the past two years.

This article will take you to a brief review of how Buffett's company has won step by step to increase its position in Japan and win investment victory.


Japanese Stock Market Bull Run 2024 📈

The Japanese stock market has entered a significant bull run, with the Nikkei 225 index reaching new highs and surpassing the 1989 record. Buffett's influence is considered a significant factor, with the index rising about 40% since his visit to Japan a year ago.

$SGX Nikkei 225 - main 2406(NKmain)$ $OSE Mini Nikkei 225 - Jun 2024(JMI2406)$ $OSE Nikkei 225 - main 2406(JNImain)$

Below are the summary outlines Buffett's investment approach in Japan, his impact on the Japanese stock market, and the performance of his investments in the Japanese trading companies. It also highlights his commitment to these investments and potential future moves in the Japanese market.

  1. Initial Investment in Japanese Trading Companies 🏢

    In August 2020, $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ announced its purchase of shares in Japan's five major trading companies, with each holding slightly above 5%.

  2. Expanding Investments in Japan 📊

    In April 2023, Buffett revealed that his holdings in the five key Japanese trading companies had increased to 7.4% and expressed his intention to further invest in the Japanese stock market.

  3. Buffett's Visit to Japan 🗾

    Buffett's visit to Japan in April 2023 was seen as a "seal of approval" by Japanese economists, potentially boosting investor confidence in the Japanese market.

  4. Institutional Investor Sentiment 🔥

    Buffett's entry into the Japanese market ignited institutional investors' enthusiasm, with interest in Japanese consumer stocks reaching a decade high.

  5. Buffett's Satisfaction with Trading Companies 🎉

    At the annual shareholder meeting in May 2023, Buffett expressed "pleasant surprise" with the five trading companies and predicted that his investments in Japan would continue to increase Berkshire's value.

  6. Additional Stake in Trading Companies 📌

    In June 2023, Berkshire Hathaway announced it had increased its stake in the five Japanese trading companies to over 8.5%.

  7. Performance of the Trading Companies 📊

    The stock prices of the five trading companies outperformed the Nikkei 225 index, validating Buffett's investment choices.

  8. Reasons for Investing in the Trading Companies 📝

    In February 2024, Buffett mentioned in his shareholder letter that the trading companies follow shareholder-friendly policies, which he finds more appealing than many American companies.

  9. Commitment to the Trading Companies 🤝

    Buffett committed to a long-term investment in the five trading companies and pledged not to purchase more than 9.9% of their shares without the approval of their boards of directors.

  10. Berkshire Issuing Yen Bonds 💴

    In April 2024, Berkshire Hathaway was reported to be planning another issuance of yen bonds, possibly indicating further investment in the trading companies.


After reading this, do you think that Buffett's Berkshire Hathaway still holds a large amount of US dollars, but has also accurately bought Japanese assets at the bottom? This operation is simply too beautiful!

Do you follow Buffett's any investment? How?

Please share with us your stock pick story in the comment section. We will reward effective comments.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Aqa
    05-04
    Aqa
    Warren Buffett’s Berkshire Hathaway is an American company. He always have American’s interest in his heart do he definitely will always hold a large amount of US dollars. He might have bought the well-established Japanese companies at their bottom, but it is more important to note that he actually value-added to these holdings to make it a success.
  • icycrystal
    05-05
    icycrystal
    uncle buffett is the legend. there are so many things to learn from him. he has foresight as he studied the company before deciding if he should invest in it.

    this requires lots of hard work and it paid off because he became the billionaire with lots of [USD] [USD] [USD] and have helped people along the way to get rich... [Grin] [Grin] [Grin]

    the fundamentals of a company is still the most important as this is one of the deciding factors to consider...

    and this is the kinda company I would go for [Grin] [Grin] [Grin]

  • nomadic_m
    05-06
    nomadic_m
    Warren Buffett has invested in the Japanese trading companies, Mitsubishi Corporation, Itochu, Mitsui & Co, Sumitomo and Marubeni. it's challenging to follow buffett's steps, hence $iShares MSCI Japan ETF(EWJ)$
  • Shyon
    05-06
    Shyon
    Yes, I admire Buffett investment style even though I am more towards technical trade. But Buffett's success in investment sector is definitely undeniably great.

    Buffett's remarkable achievements today are inseparable from his long-standing investment principles.

    Buffett invests in great businesses trading for less than their intrinsic values, and then he holds the investments for as long as they remain great businesses.

    I bought my $Apple(AAPL)$ almost at the same moment with Buffett, mainly inspired by his trade and seek entry in Apple through my personal technical analysis. A fruitful position to hold!

    His current holdings that I monitor closely is $Occidental(OXY)$ . I have no confident in the stock and I would like to monitor it and see how Buffett surprises me once again! [Sly] [Sly] [Sly] [Smart] [Smart] [Smart]

    @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @TigerStars @Tiger_story

  • Success88
    05-05
    Success88
    I follow Warren Buffett investment strategies. Stay for long term growth and investment in Japan ETF like $iShares MSCI Japan ETF(EWJ)$ In investing, it's important to align your risk tolerance, investment objectives, and holdings to achieve your financial goals and stay even-keeled no matter what the market is doing. In today's fast-paced world riddled with rapid change, staying true to your principles is more vital than ever. This is what Warren Buffett taught me
  • WonderElephant
    05-04
    WonderElephant
    Yes I follow Buffett’s investment style! My stock pick story is that I like “House Brands” companies with good balance sheet. I dont believe in riding the wave, so I like to buy $Bank of America(BAC)$ $Coca-Cola(KO)$ $Ford(F)$ Thanks @Tiger_story for the coins!
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