'The eyes of this experienced person should not be played with, there is a reason why he has to increase his stake in these 5 Japanese companies.'
Warren Buffett through his company, Berkshire Hathaway Inc added at least 1% in the original stake in 5 different trading firms in Japan.
According to the filing, Berkshire now owns more than 6% of each of the five Japanese investment firms and indirectly pushed the shares higher in today's trading session.
Examining the details of the investment, Berkshire's stake in Mitsubishi Corp rose to 6.59% from 5.04% while its interest in Mitsui & Co Ltd became 6.62% from 5.03.
In addition, holdings in Itouchu Corp increased to 6.21% from 5.02% with stakes in Marubeni Corp rising to 6.57% from 5.04% and Sumitomo Corp to 6.57% from 5.04%.
The news of the increased stake is seen in line with Berkshire's statement in 2020 that said its long-term investment in the Japanese trading firm could reach up to 9.9%.
Also reacting was Monex's chief strategist, Takashi Hiroko, who said he was not surprised by Berkshire's increased stake.
He explained that the high share prices of trading companies are linked to high commodity prices and their good earnings will bring strong returns to shareholders.
On the other hand, Berkshire is also said to have increased its investment profile by buying $4.1 billion of shares in Taiwan Semiconductor Manufacturing (TSMC) on November 14.
It is understood to be a rare purchase in the technology sector by conglomerate billionaires such as Warren Buffett.
