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

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?

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