[ad_1]
REUTERS: Berkshire Hathaway said it has acquired a little more than 5% of the shares of five big Japanese companies, marking an exit for President Warren Buffett as he looks outside the United States to strengthen his conglomerate.
In a statement on Sunday, Buffett’s 90th birthday, Berkshire said it acquired its stakes in Itochu, Marubeni, Mitsubishi, Mitsui & Co and Sumitomo for about 12 months.
Berkshire said it intends to keep the investments long-term and could increase its holdings to 9.9 percent. A Berkshire insurance company, National Indemnity, holds the shares.
“I am delighted that Berkshire Hathaway is involved in the future of Japan,” Buffett said in a statement. “The top five trading companies have many joint ventures around the world and they are likely to have more … I hope there are opportunities for mutual benefit in the future.”
Japanese investments will help Buffett reduce his Omaha, Nebraska-based conglomerate’s dependence on the U.S. economy, which in the last quarter suffered its deepest contraction in at least 73 years as the coronavirus pandemic took hold.
Many of Berkshire’s operating businesses have struggled, with Berkshire this month seeing a $ 9.8 billion write-off on its Precision Castparts aircraft parts business.
Berkshire owns more than 90 companies, including rail insurer BNSF and auto insurer Geico.
It also invests in dozens of companies, including Apple Inc, with a stake of approximately $ 125 billion based on its stakes as of June 30, as well as American Express, Bank of America and Coca-Cola.
Most of Berkshire’s operating businesses are American, although it has acquired a handful of foreign companies, including Israel’s IMC International Metalworking and German motorcycle clothing retailer Detlev Louis.
Additional investments in Japan could also help Buffett cut Berkshire’s cash stake, which ended June at a record $ 146.6 billion.
