By Jonathan Stempel
New York (Reuters) – Warren Buffett said on Saturday that his conglomerate Berkshire Hathaway would likely increase her property in the five Japanese commercial houses she has.
In his annual letter to Berkshire shareholders, the billionaire investor said that Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo agreed to “moderately relax” limits that have capped the ownership issues of Berkshire below 10%.
Berkshire’s investments in companies totaled $ 23.5 billion at the end of 2024.
“Over time, you will probably see Berkshire’s property of the five increase somewhat,” wrote Buffett.
Buffett, 94, also said that he and Vice-President of Berkshire, Greg Abel, his designated successor as director general, invest for the “very long term”.
“I expect Greg and his possible successors to occupy this Japanese position for many decades and that Berkshire will find other ways of working in a productive way with the five companies,” wrote Buffett.
Known as “Sogo Shosha”, Japanese commercial houses are negotiated in a wide variety of materials, products and food, often serving as intermediaries and providing logistical support.
They are also deeply involved in the real economy in fields such as basic products, shipping and steel.
Berkshire began investing in negotiation houses in 2019, driven by their finances compared to their low -stock low prices, and revealed 5% of Buffett’s 90th anniversary in August 2020.
Buffett prefers to avoid businesses, he says he doesn’t understand.
He told Nikkei in 2023 that the commercial houses were “really so similar in Berkshire”, the Omaha conglomerate, Nebraska, which he has been led since 1965.
Berkshire spent $ 13.8 billion for its current assets and expects dollars in dividends in 2025, Buffett said shareholders’ letter.
“It was a good value investment when others may have considered them as valuable traps,” said Cathy Seifert, CFRA research analyst who assesses Berkshire a “taken”.
She said Buffett’s comments show that Berkshire has a positive employment relationship with commercial houses.
Berkshire also issued fixed and worded rate obligations, but Buffett said that he was looking for a “neutrality of currencies” and has no opinion on future currency changes.
The conglomerate declared on Saturday $ 1.15 billion in the currency after taxes in 2024.
(Report by Jonathan Stempel, in New York; writing by Carolina Mandl, in New York; edition by Rod Nickel)
