"Stock God" Buffett increases stake in Japanese stocks again? Berkshire Hathaway plans to issue yen bonds, leading to a rise in trading companies' stocks
Berkshire Hathaway plans to issue yen bonds for the second time this year, with market speculation that it aims to increase its investments in Japan, leading to a rise in Japanese trading company stocks. The company has been regularly issuing yen-denominated notes since 2019, with the most recent issuance in April. Buffett mentioned in the shareholder letter that Berkshire's investments in Japanese companies are mainly financed through yen bonds. Trading company stocks in Japan rose in the Tokyo market, with Itochu Corporation and Mitsubishi Corporation rising by 3.8% and 4.2% respectively
According to the Zhitong Finance and Economics APP, "Stock God" Warren Buffett's Berkshire Hathaway is planning to issue yen bonds for the second time this year, sparking market speculation that the company is seeking to increase its investments in Japan, leading to a rise in Japanese trading company stocks.
It is reported that Berkshire Hathaway has hired Bank of America Securities and SMBC Nikko Securities to issue yen-denominated senior unsecured bonds. The company has been a regular issuer of yen notes since 2019, with the last issuance of such bonds in April.
Berkshire Hathaway's fundraising plans are closely watched by stock market investors, as Buffett previously purchased shares in Japanese trading companies and helped the Nikkei 225 index reach historic highs. In his annual shareholder letter in February this year, Buffett stated that most of Berkshire Hathaway's investments in Japanese companies are financed through the issuance of yen bonds.
On Tuesday, Japanese trading company stocks continued to rise in the Tokyo market, with the sector index rising as much as 2.8%. In comparison, the Nikkei 225 index rose by 1.87%. Itochu Corporation rose by 3.8%, Mitsubishi Corporation rose by 4.2%.
It is reported that Buffett's favored Japanese trading companies include Itochu Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., and Sumitomo Corporation. In February this year, Buffett revealed in his shareholder letter that Berkshire's stake in these trading companies had increased to about 9%. He disclosed that these investments are long-term investments spanning 10 to 20 years