Warren Buffett, Chairman and CEO of Berkshire Hathaway Inc., in Iwaki City, Fukushima Prefecture, Japan in 2011.
Bloomberg | Bloomberg | Getty Images
Japanese department store shares rose Tuesday afternoon trading after Warren Buffett, chairman and CEO Berkshire Hathawayhe said he plans to increase his stake.
In an interview with NikeBuffett said he was considering additional investments in five major Japanese department shops, adding that he was “very proud” of his current investments in them.
related investment news
Mitsubishi Corp shares rose 2.08% in Japanese afternoon trade, Mitsui & Co. gained 2.66%, Itochu Corp. by 2.98%, and Marubeni Corp. by 4.55%. Sumitomo Corp. also increased by 3.19%.
Buffett told the Nikkei he plans to meet with firms later within the week to “really just discuss their business and highlight our support,” according to the report.
Japan’s five largest trading firms – known as sogo shosha – are conglomerates that import every little thing from energy and metals to food and textiles to resource-poor Japan. In addition they provide services to producers. Department stores helped develop the Japanese economy and contributed to the globalization of its activities.
Buffett told the Nikkei he currently has 7.4% stake in Itochu — a rise of roughly 0.6 percentage points from the 6.8% stake disclosed within the November regulatory reports.
Late last 12 months, Berkshire Hathaway increased its holdings in Japan’s five leading department shops by a minimum of 1 percentage point to greater than 6% each – following its initial purchase in August, when Buffett acquired greater than $6 billion in stakes on his ninetieth birthday. birthday.
November filings showed Berkshire Hathaway’s position was 6.6% in Mitsubishi Corp., 6.6% in Mitsui & Co., 6.2% in Itochu Corp., 6.8% in Marubeni Corp. and 6.6% in Sumitomo Corp.
Nikkei individually reported that Buffett’s Berkshire Hathaway is preparing one other yen-denominated bond issue, which was taken as a signal that the conglomerate will increase investment in Japan.
— Becky Quick of CNBC contributed to this report