From CNBC: 2025-03-17 08:35:45

Warren Buffett continues to show his love for Japanese stocks, increasing holdings in five major trading houses. Berkshire Hathaway now owns stakes ranging from 8.5% to 9.8%, worth $23.5 billion. Buffett praised the companies’ management and strategies, aiming to hold these investments long term despite selling U.S. equities.

Buffett’s investment strategy involves hedging currency risk by selling Japanese debt. He started buying into Japanese companies in 2019 and now holds a $334 billion cash pile after selling over $134 billion worth of U.S. stocks in 2024. Buffett values the Japanese firms’ dividend growth and long-term potential.

Buffett’s commitment to Japanese investments is evident as Berkshire Hathaway plans to go beyond a 10% stake in the trading houses. Buffett, known as the “Oracle of Omaha,” sees similarities between the Japanese companies’ diverse investments and Berkshire’s own strategy. The investor is impressed with the companies’ capital deployment and relationships with investors.

Read more: Buffett hikes stakes in five Japanese trading houses to almost 10% each