Warren Buffett's Berkshire Hathaway has struck gold with its investments in five major Japanese trading firms: Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co, and Sumitomo Corp. These companies, which make up Japan's largest "sogo-shosha" or general trading houses, have seen significant gains in 2024, with one surging as much as 30%.
Berkshire Hathaway’s strategic bets on these trading giants date back to 2020, with Buffett later increasing his stakes. These trading houses, integral to Japan's economic ascent, deal in a vast array of products and materials. In recent years, they've expanded into global venture capital and private equity, a diversification that likely appealed to Buffett’s investment philosophy.
In a historic achievement, Berkshire Hathaway recently hit a $1 trillion market capitalization, becoming the first non-technology company in the U.S. to reach this milestone. As of Thursday morning, its valuation stood at $994.58 billion. The company’s stock has soared 30.3% in 2024, significantly outpacing the S&P 500's 17.24% gain.
While Berkshire’s portfolio includes Japanese and Chinese equities, its primary focus remains on American companies, with heavyweights like Apple, American Express, Bank of America, and Coca-Cola forming the core of its investments.
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