Buffet’s Big On Japan (Again) & How You Can Bet on It Too

April 12, 2023

2 min read

As we have reported prior, Warren Buffer loves Japanese firm ever since pandemic started. Now, Warren Buffett’s Berkshire Hathaway is reportedly considering increasing its stake in Japanese firms. Japan’s trading houses are significant players in the country, importing everything from food to energy and playing a pivotal role in expanding and globalizing Japan’s economy.

Buffett’s interest in Japanese firms began in 2020 when he invested $6 billion in them, and this investment has reportedly netted Berkshire Hathaway a profit of $4.5 billion.

Berkshire Hathaway currently has a 7.4% stake in the trading houses, and Buffett is considering increasing this stake. He has even traveled to Japan to meet with key business leaders.

Berkshire Hathaway’s yen-denominated bond sale this week may be a sign that the firm is preparing to invest more in Japan.

Buffett’s track record suggests that well-managed companies with strong competitive advantages that appear undervalued are attractive to him.

This news is good for Japan’s markets, as foreign investors may be tempted to return to the market, which has seen more foreign selling than buying lately.

Nikkei 225 has already jumped on the news recently. With SP500 gaining 7% in the past month and lower expected EPS in Q1 2023 it could be wise to hold some Japanese Yen, as well as the index to hedge against plausible decline in the US-led financial… Click To Tweet

As the Flagship investor know, we love trading USD/JPY (it doesn’t always work, but has been among one of our more successful pairs), and you are very welcome to join in if you are not ready to make the bets on Japan vs US complicated dynamics.

Any newfound interest in Japanese stocks could ignite a spark of domestic optimism, fueling spending and giving the economy a much-needed boost.

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