Buffett's Berkshire boosts stakes in Japan's five biggest trading houses

TOKYO :Berkshire Hathaway Inc, run by billionaire Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 per centage point to more than 6 per cent, regulatory filings showed on Monday, sending shares higher.

The move is line with Berkshire's statement in 2020 that its investments in the Japanese trading houses were for the long term and the stakes could rise to 9.9 per cent.

Berkshire's stakes have increased to 6.59 per cent from 5.04 per cent in Mitsubishi Corp, to 6.62 per cent from 5.03 per cent in Mitsui & Co Ltd, to 6.21 per cent from 5.02 per cent in Itochu Corp, to 6.75 per cent from 5.06 per cent in Marubeni Corp and to 6.57 per cent from 5.04 per cent in Sumitomo Corp.

The news boosted shares of the five trading houses, led by Mitsubishi and Marubeni, which were up more than 2 per cent in morning trade, while the benchmark Nikkei index was nearly flat.

Japanese regulatory rules require disclosure within five business days when an investor who owns more than 5 per cent of a listed company raises or cuts a stake by 1 per centage point.

Berkshire's increased investments in the trading houses come as it this month bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing, a rare significant foray into the technology sector by the conglomerate.