Japanese buying and selling homes soar as Warren Buffett says he plans to purchase extra

Warren Buffett, Chairman and Chief Executive Officer of Berkshire Hathaway Inc., in Iwaki City, Fukushima Prefecture, Japan in 2011.

Bloomberg | Bloomberg | Getty Images

Shares of Japanese trading houses rose in Tuesday afternoon’s trading after Warren Buffett, the chairman and CEO of Berkshire Hathawaysaid he plans to increase his holdings.

In an interview with Nikkei, Buffett said he was considering additional investments in five major Japanese trading houses, adding that he was “very proud” of his existing investments in them.

Mitsubishi Corp. shares up 2.7% in Japanese afternoon trade, Mitsui & Co. rose 2.6%, Itochu Corp rose 2.5% and Marubeni Corp. rose 2.7%. increased by 3.7%. Sumitomo Corp. also increased by 2.7%.

Buffett told Nikkei that he plans to meet with the companies later in the week “to really just have a discussion about their businesses and emphasize our support,” according to the report.

Stock Chart IconStock Chart Icon

Japan’s top five trading companies — known as Sogo Shosha — are conglomerates that import everything from energy and metals to food and textiles to resource-poor Japan. They also offer services to manufacturers. The trading houses have contributed to the growth of the Japanese economy and contributed to the globalization of their business.

Buffett told Nikkei that he currently owns a 7.4% stake in Itochu — up about 0.6 percentage points from the 6.8% stake disclosed in November’s regulatory filings.

Late last year, Berkshire Hathaway increased its positions in Japan’s top five trading houses by at least 1 percentage point, to more than 6% each — following its first purchase in August, when Buffett acquired shares totaling more than $6 billion in its 90. Birthday.

Filing in November showed that Berkshire Hathaway’s holdings were 6.6% in Mitsubishi Corp., 6.6% in Mitsui & Co., 6.2% in Itochu Corp., 6.8% in Marubeni Corp. and 6.6% in Sumitomo Corp.

Nikkei separately reported that Buffett’s Berkshire Hathaway was preparing another issuance of yen-denominated bonds, which was taken as a signal that the conglomerate would increase its investments in Japan.

— CNBC’s Becky Quick contributed to this report

Comments are closed.