Buffett Commends Investment in Japanese Trading Firms (NYSE:BRK.A)

Warren Buffett, the chairman of Berkshire Hathaway, recently expressed his satisfaction with the conglomerate's stake in Japan's top five trading companies during their annual shareholder meeting. In a strategic move in August 2020, Berkshire acquired passive stakes in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Buffett praised the commitment made to Japan five years prior, describing it as attractive and compelling.

While the investments in Japanese companies have been successful, Buffett noted that Berkshire Hathaway's size would limit further investments outside the United States. He reiterated the company's focus on American investments and indicated that significant future investments were likely to be in the US. At 93 years old, Buffett acknowledged his understanding of global markets but suggested that large commitments in other countries were improbable, though not entirely out of the question.

He expressed confidence in Berkshire Hathaway's position in Japan and emphasized the importance of caution in international investments. During the meeting, Buffett also discussed two major investments recommended by his late associate, Charlie Munger, which included Berkshire's stake in the Chinese electric vehicle maker BYD. These investments showcase Berkshire Hathaway's strategic portfolio management approach under the guidance of Buffett and his team.