No. of Recommendations: 3
Will the Japanese stocks outperform Brk over ten years, total return? “ the five Japanese trading houses bought by Warren Buffett—Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo—pay significant and consistent dividends. These companies, known as sogo shosha, have been a major source of income, with Berkshire Hathaway expecting to collect $812 million in dividends from these investments in 2025 alone.Key details on the dividends and investment strategy:High Yields: The trading houses were paying dividends of around 4% annually when Buffett invested.Dividends Increase: The companies have been increasing their dividends, a factor that prompted Buffett to increase his holdings in these firms.Financing Strategy: Buffett financed much of this investment by issuing low-interest yen-denominated debt (costing around 1% or less), using the high dividends from the stocks to comfortably cover the debt payments.Dividend Focus: In addition to high dividends, these firms are known for regular share buybacks.@
