Warren Buffett's investment in Japan has paid off, outperforming the S&P 500

From Yahoo Finance: 2024-07-06 08:16:19

Warren Buffett’s investment in Japan has paid off big, with the MSCI Japan Index gaining 87% in the past five years, outperforming the S&P 500. But jumping into a Japan-focused ETF yielded a smaller return due to the yen’s depreciation. Buffett hedged his currency risks by borrowing in yen at low rates and issuing yen-denominated bonds. Factors like corporate governance and shareholder returns continue to support Japanese stock prices. Investors can use currency-hedged ETFs to capitalize on the opportunity but should be cautious about unpredictable currency fluctuations.



Read more at Yahoo Finance: Tempted by Japan’s Booming Market? Be Like Warren Buffett