We are accustomed to Warren Buffett moving individual stocks by giving them his seal of approval. On Tuesday, the famous US investor moved an entire market. Japanese stocks rose after he said his company Berkshire Hathaway would increase its investments there.
Buffett made a $6bn bet on five of Japan’s trading houses three years ago at over 5 per cent each. He increased Berkshire Hathaway’s exposure last year and has now gone to 7.4 per cent on all five.
Critics question his obsession with these companies. They have channelled international transactions since the Meiji era expansion of the 19th century. But their operations are complex and their growth has been sluggish. All five — Mitsubishi Corp, Mitsui & Co, Itochu, Sumitomo and Marubeni — have been hit hard by disruption to commodity supply chains from the Ukraine war.