Berkshire may boost Japan trading house holdings, Itochu says
The U.S. investment firm owns stakes of more than 10% in Mitsubishi, Sumitomo, Mitsui, Marubeni and Itochu.
Berkshire Hathaway, the investment firm led by legend Warren Buffett, is reportedly considering increasing its holdings in major Japanese trading houses, according to Masahiro Okafuji, chairperson of the lobby group representing these firms. Okafuji made this statement after a meeting with Berkshire CEO Greg Abel earlier this month.
The U.S. investment giant already holds stakes of over 10% in companies including Mitsubishi, Sumitomo, Mitsui, Marubeni, and Itochu. Okafuji, who is also chairperson of Itochu, told the Nikkei newspaper that Berkshire may even expand its ownership of the trading houses. Berkshire has been investing in the Japanese trading houses for over six years, progressively increasing its stakes.
The company values the strategic advantages these firms offer, such as extensive global networks and sophisticated capital allocation, which create significant barriers to entry in the market. Berkshire does not interfere with the trading activities of these houses and is open to a higher stake, up to 15% in their eyes. However, some potential conflicts of interest may arise due to the firm's also being a shareholder in these companies.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
