TOKYO : Shares in Japan’s five major trading houses rose more than 5 per cent in early trade on Tuesday after billionaire investor Warren Buffett said his conglomerate Berkshire Hathaway would likely increase its ownership in them.
Mitsubishi Corp was the top performer, up 7.5 per cent, while Mitsui & Co, Sumitomo Corp, Itochu and Marubeni each gained more than 5 per cent.
In his annual letter to Berkshire shareholders published at the weekend, Buffett said the five trading houses agreed to “moderately relax” limits that capped Berkshire’s ownership stakes below 10 per cent.
“Over time, you will likely see Berkshire’s ownership of all five increase somewhat,” Buffett wrote.
Tokyo’s benchmark Nikkei share average was down 1.57 per cent. Markets were closed on Monday due to a public holiday.
Known as “sogo shosha,” Japanese trading houses trade in a variety of materials, products and food – often serving as intermediaries – and provide logistical support. They are also involved in the real economy in such areas as commodities, shipping and steel.
Berkshire’s investment in the companies, which began in 2019, totalled $23.5 billion at the end of 2024. It has spent $13.8 billion on its current holdings and expects $812 million of dividend income in 2025, Buffett said in the letter.
