The shareholding ratios of Mitsui & Co. increased from 8.09% to 9.82%, Mitsubishi Corporation's shareholding rose from 8.31% to 9.67%, Sumitomo Corporation's shareholding increased from 8.23% to 9.29%, Itochu Corporation's shareholding was raised from 7.47% to 8.53%, and Marubeni Corporation's shareholding went up from 8.30% to 9.30%. Munger once stated that Buffett's bet on the Japanese stock market is a "once in a century" opportunity, as the low interest rate environment allows investors to achieve substantial returns at almost zero cost.
Buffett continues to significantly increase his shareholding in Japan's five major trading companies.
The latest regulatory documents show that Buffett's company $Berkshire Hathaway-A (BRK.A.US)$ $Berkshire Hathaway-B (BRK.B.US)$ has once again increased its shareholding in the five major trading companies in Japan:
$Mitsui (8031.JP)$The shareholding ratio increased from 8.09% to 9.82%,
$Mitsubishi (8058.JP)$The shareholding ratio rose from 8.31% to 9.67%,
$Sumitomo (8053.JP)$The shareholding ratio improved from 8.23% to 9.29%,
$ITOCHU (8001.JP)$The shareholding ratio was adjusted from 7.47% to 8.53%,
$Marubeni (8002.JP)$The shareholding ratio of the company increased from 8.30% to 9.30%.
According to media statistics, after this Shareholding increase, Berkshire averages nearly 10% ownership in these five companies.
As of today's market close, the five major trading companies collectively rose, with Mitsubishi Corporation and Sumitomo Corporation increasing by 2.69% and 2.66% respectively, leading the gains.
Munger: Investing in Japan is a 'once-in-a-century' opportunity.
Previously, in the shareholder letter released three weeks ago, Buffett stated that Berkshire's investment in the five Japanese trading companies is continuously increasing, planning to Hold these Shares for decades, and promised to support their Board of Directors; the five trading companies have agreed to 'moderately relax' the restriction on the company's shareholding ratio below 10%.
The shareholder letter also showed that at that time, most of the 24 billion dollars in Japanese Assets held by Berkshire were financed through fixed-cost, yen-denominated debt. The company paid 0.135 billion dollars in interest and received 0.812 billion dollars in dividends.
In 2023, Charlie Munger, then vice chairman of Berkshire, stated in a podcast that Buffett's bet on the Japanese stock market is a once-in-a-century opportunity, which can yield enormous returns with almost zero risk.
The interest rate in Japan is 0.5% per year, for a duration of 10 years. Therefore, you can borrow all the money in advance for 10 years, and buy stocks that have a 5% dividend, resulting in a substantial cash flow, without needing to invest, think, or do anything.
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