After the sharp drop in Japanese stocks, is it a good opportunity to "buy the dip"? Will Warren Buffett increase his holdings?

Will Buffett increase his holdings in the five major trading companies again after February this year?

According to media data, Berkshire Hathaway currently holds an average of 8.2% of the shares of the Japanese "five major trading companies" (Mitsui & Co., Mitsubishi Corp., Itochu Corp., Sumitomo Corp., Marubeni Corp.). Due to the fact that these five companies are engaged in various trading businesses, they have been hit hard by the appreciation of the yen, with a total market value evaporation of about $6.7 billion in Monday's stock market plunge, with an average decline exceeding the overall market.

As of Wednesday, Marubeni and Mitsui & Co.'s forward P/E ratios have dropped to 7.5 and 9.1 times respectively, approaching the levels when Buffett increased his holdings last year; and after Berkshire Hathaway significantly reduced its holdings of Apple in the second quarter, its cash reserves have risen to a record $276.9 billion.

Therefore, some analysts speculate that Buffett may take this opportunity to increase his holdings again.

Hiroshi Namioka, Chief Strategist at Tokyo T&D Asset Management, said:

"Buffett has always been good at value investing and may see the current undervaluation of Japanese stocks as an investment opportunity."

In fact, since disclosing the increase in holdings of the five major trading companies last summer, Berkshire Hathaway has been continuously increasing its holdings. In February this year, Berkshire Hathaway's stake in the five major trading companies has reached 9%, earning $8 billion by the end of last year, with a return rate of 60%.

However, Buffett has previously stated that he will not purchase more than 9.9% of the shares without the approval of the boards of the five companies