What makes Berkshire so successful recently?

Recently, the shareholders' meeting of Berkshire Hathaway has attracted much attention, and many people have paid attention to Buffett's investment in the Japanese market. Berkshire Hathaway increased its stakes in Japan's five major trading companies and issued yen bonds, showing confidence in the Japanese economy and enterprises. At the same time, the company also announced Buffett's successor, Greg Abel, which provides stability for future leadership transitions. In addition, the company also sold most of its shares in $Taiwan Semiconductor Manufacturing(TSM)$ TSMC, a Taiwanese chip manufacturer, to avoid geopolitical risks and increased its stake in

Global market

First of all, Berkshire Hathaway to Japan's five major trading companies - Mitsui & Company, Mitsubishi, Sumitomo, Itochu and Maruben I) The increase in holdings is a support for Japan's largest integrated enterprise and the entire Japanese economy. These trading companies, also known as Sogo Shosha, are involved in various industries, including energy, metals, chemicals, machinery, food, textiles, etc. These trading companies have also been shifting from fossil fuels to renewable energy in recent years to cope with climate change and market fluctuations. When Buffett first invested in these trading companies last year, it triggered a rise in their stock prices. At present, Berkshire Hathaway's shares in these trading companies have exceeded $6 billion.

Secondly, Berkshire Hathaway issued yen bonds in the Japanese market, which is another move after the first issue in 2019. According to Bloomberg, the company is one of the largest foreign issuers in the yen bond market. The company uses the proceeds from the bonds for corporate purposes, including repaying part of the debt. This measure shows Berkshire Hathaway's stability of the yen and its use of Japan's low interest rate environment. At the same time, it also reflects the attractiveness of Japanese bonds to foreign investors, despite the challenges facing the global economy.

Finally, Berkshire Hathaway also made some adjustments in other markets. The company sold 86% of TSMC's shares on the grounds of geopolitical risks. TSMC is the world's largest chip foundry and a supplier to technology giants such as $Apple(AAPL)$ . The company's investment in Western Petroleum has continued to grow, buying nearly $1 billion in shares in the past year. This makes Berkshire Hathaway one of the largest shareholders of Western Petroleum, with a 23.6% stake in the company. At present, Berkshire Hathaway's investment in Western oil is worth $12.6 billion, much higher than the initial investment.

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