No. of Recommendations: 2
what Buffett hasn’t yet disclosed? Barron’s, “” Buffett’s Increasing Stakes in Japanese Companies, Says Sumitomo CEO
Warren Buffett’s Berkshire Hathaway has been building its stake in the five largest Japanese general trading companies since disclosing an increase in ownership last summer, the CEO of Sumitomo, one of those companies, told Barron’s on Monday.
“Through the information I have, it is increasing—not only Sumitomo, but all five trading companies. His share is increasing every day,” Hyodo told Barron’s in an interview on the sidelines of the World Economic Forum late Monday. Barron’s has reached out to Berkshire Hathaway for comment.
Berkshire Hathaway first announced a 5% passive stake in the five largest Japanese general trading companies in August 2020, before revealing last June that it had increased its interest to an average of more than 8.5% across the group of firms.
At the time, Berkshire Hathaway said it may increase its holdings depending on price, but that Buffett had pledged it would not purchase more than 9.9% of any of the five companies before seeking approval from the respective boards.
What’s Next: If, indeed, Berkshire were to seek permission from a general trading company board to increase its stake above 9.9%, the sentiment as described by Hyodo appears receptive. While Sumitomo’s CEO deferred to the board, he said: “I think [Berkshire] are a very important partner, as an investor to our company but also to any business opportunity provided to each other.”
