Warren Buffett has expressed interest in Japan once again, and is considering increasing his stock investments in the country. In a recent interview with Nikkei, the billionaire investor stated that he has raised his holdings in major trading houses to 7.4% from approximately 5% in 2020. Following the report, the shares of these trading houses surged.
Buffett, aged 92, is presently visiting Japan and intends to meet with several business leaders to discuss their companies and extend support. In an interview with Nikkei, he refrained from mentioning the names of the companies. Buffett likened Japan's five significant trading houses to Berkshire and expressed his interest in doing business with them.
Why it matters
Lorraine Tan, director of equity research at Morningstar Asia, remarked that Buffett's interest in investing in Japan highlights the availability of attractive and reasonably priced investment opportunities in the country. Tan also stated that Buffett would likely seek out well-managed companies with economic moats that he believes are undervalued, based on his investment preferences.