Caesars Entertainment misses Q2 earnings expectations, shares edge lower
Investing.com-- Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRKa) increased its stake in Japan’s five largest publicly listed trading houses, filings with Japan’s Ministry of Finance showed on Monday.
Berkshire hiked its stakes in Mitsui & Co., Ltd. (TYO:8031), Mitsubishi Corp. (TYO:8058), Sumitomo Corp. (TYO:8053), Itochu Corp. (TYO:8001), and Marubeni Corp. (TYO:8002), according to filings from the hedge fund’s unit- National Indemnity Company-with Japan’s Ministry of Finance.
The stake increases saw Berkshire’s holdings in the five firms come close to 10%, respectively.
The recent purchases are in line with comments from Buffett that he will increase the hedge fund’s holdings in the five companies. Buffett had said as much in an annual letter to shareholders last month, after the five companies agreed to relax limits that capped Berkshire’s holdings below 10% ownership.
"Over time, you will likely see Berkshire’s ownership of all five increase somewhat," Buffettt wrote in the letter.
Known as “sogo shosha,” Japan’s major trading houses are some of the country’s biggest companies, and have holdings across a variety of different industries, ranging from commodities to real estate.
Buffettt had first begun investing in the trading houses in 2019, and had lauded their strong finances and relatively low stock valuations. In 2023, the billionaire investor had highlighted similarities between the companies and his Omaha, Nebraska-based hedge fund.
Buffett said in his February shareholder letter that Berkshire had up to then spent $13.8 billion on its holdings in the five companies, and expected returns of $812 million in dividend income in 2025.