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A $ 6 billion investment in shares of a Japanese trading company by wealthy Warren Buffett could send foreign investors back to the Japanese stock market, which has a high share of value stocks. is there. Some strategists point out:
Berkshire Hathaway, an American investment and insurance company, has five major trading companies, ITOCHU, Mitsubishi, Mitsui, Sumitomo, and Marubeni, respectively.Get. This indicates that Berkshire is likely to look ahead to the novel coronavirus pandemic and bet on global growth, said Amir Advisor, senior strategist at Asymmetric Advisors. Amberzade pointed out.
“Given the Japanese market, which is very cyclical in nature, the bets on equity trading show that Buffett is anticipating the pandemic as the business cycle bottoms out. Analysis.” If value stocks start to outperform stocks of growth, investors will start looking at Japanese stocks, which will be a bigger turnaround than Buffett’s investment, “he said.
Japan seems like a wise choice for global value investors. The valuation of Japanese stocks is much lower than the previous average compared to the world. At least looking at the expected price-earnings ratio. According to data compiled by Bloomberg, traditional value stocks such as industrial stocks, financial stocks, and stock stocks account for approximately 37% of TOPIX.
The commercial shares bought by Mr. Buffett in the trading on the 31st were all extremely high. TOPIX was also up, but the index has fallen 6% so far this year, lagging the MSCI All Country World Index (ACWI) by 4%.
Buffett invests in five Japanese trading companies, “looking forward to mutually beneficial opportunities.”
Buffett, who turned 90 on the 30th, had recently bought commodity-related stocks like Barrick Gold before the stock in this trading company. Shinkichi Ichikawa, Senior Fellow, Pictet Investment Trust Co., Ltd., said Berkshire has recently been shifting its portfolio in preparation for inflation, while Japanese trading companies have strengths in resource trading, etc. He noted that it has a business structure.
As for Berkshire’s investment this time around, “it will be a catalyst for mostly foreign investors to pay attention to (Japanese) inflation-resistant and associative companies.”
Original title:
Buffett’s gamble paves the way for Japan as a global value trade （抜 粋）
