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Warren Buffett Reveals New Long Term Investments

By Howard Smith - Updated Aug 31, 2020 at 8:57AM

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Buffett's Berkshire Hathaway has been accumulating shares in leading Japanese trading companies for a total stake worth over $6 billion.

Warren Buffett turned 90 years old yesterday, and he made sure everyone knew he's still going strong. His company Berkshire Hathaway (BRK.A 1.22%) (BRK.B 1.26%) announced that over the past approximately 12 months, it has accumulated stakes in five of the leading Japanese trading companies of slightly more than 5% each. At today's share prices, the total investment is valued at about $6.25 billion. 

The Japanese firms are Itochu (ITOCF 3.64%), Marubeni (MARUY 3.36%), Mitsubishi (MBFJ.F 2.31%)Mitsui (MITSY -0.98%) and Sumitomo (CMTD.F -0.72%). Berkshire bought the shares through normal open purchases on the Tokyo stock exchange. 

warren buffett profile picture from 2015

Image source: The Motley Fool.

Buffett has been known for his long-term investments. Recently, however, his company has announced some notable sales, including all of its airline stocks and 25% of its long-held Wells Fargo (WFC 0.81%) stake. 

Berkshire said its intention is to hold the Japanese trading companies for the long term. It also said these investments are passive, and Berkshire will not raise its ownership stakes in any of the five firms to more than 9.9% "unless given specific approval by the investee's board of directors."

Buffett commented, "I am delighted to have Berkshire Hathaway participate in the future of Japan," while also noting that the trading companies have joint ventures around the world that he believes are likely to increase. He added, "I hope that in the future there may be opportunities of mutual benefit."

The five Japanese companies deal in materials including metals, textiles, food and energy. Berkshire Hathaway's collection of companies include some in these fields and may be a source for mutually beneficial work in the future. 

Howard Smith owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short September 2020 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

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Stocks Mentioned

Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$444,507.25 (1.22%) $5,340.24
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$296.02 (1.26%) $3.68
ITOCHU Corporation Stock Quote
ITOCHU Corporation
ITOCF
$28.36 (3.64%) $0.99
Marubeni Corporation Stock Quote
Marubeni Corporation
MARUY
$100.18 (3.36%) $3.26
Mitsui & Co., Ltd. Stock Quote
Mitsui & Co., Ltd.
MITSY
$440.00 (-0.98%) $-4.36
Sumitomo Mitsui Trust Holdings, Inc. Stock Quote
Sumitomo Mitsui Trust Holdings, Inc.
CMTD.F
$31.80 (-0.72%) $0.23
Mitsubishi UFJ Financial Group, Inc. Stock Quote
Mitsubishi UFJ Financial Group, Inc.
MBFJ.F
$5.31 (2.31%) $0.12
Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$43.54 (0.81%) $0.35

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