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ITOCHU (OTC:ITOCY) Stock, Option Chain

ITOCHU CORP ADR

ITOCHU

ITOCHU Corp is a group of businesses that engage in importing, exporting, and trading various products. The traded goods include textiles, machinery, metals, minerals, energy, chemicals, food, general products, realty, and information and communications technology. The largest segments by net profit to the group are Food; Energy and Chemicals. The Food segment pursues efficiency-oriented operations from production and distribution to retail in all areas of food from raw materials to finished products both in Japan and overseas. The energy and chemicals segment trades crude oil and oil derivatives and chemicals.

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The recent global market turmoil, which originated in Japan, has had a limited impact on Warren Buffett&#39;s substantial Japanese investments. Despite initial significant losses, the market managed to recover most of the decline by the end of the week.

Global Market Turmoil Tests Warren Buffett&#39;s Japanese Investments: Despite Initial 30% Plunge, Berkshire Hathaway&#39;s $20B Bet On Japan&#39;s Trading Giants Recovers

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Coal market tight due to supply outages in Australia and US. Prices may spike in fall when Asia restocks. Demand side may cap rally due to economy.

Coal Prices Set To Rise When Restocking Begins After US, Australia Mine Outages

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Private equity giant Blackstone is expanding to the Japanese market, with plans to invest $9.6 billion by 2027. Other firms, including Berkshire Hathaway, are also targeting Japan for investment opportunities.

Private Equity Giant Blackstone Targets Japanese Market, Anticipates &#39;Accelerated Growth&#39;: Report

ITOCHU Corp

The recent global market turmoil, which originated in Japan, has had a limited impact on Warren Buffett&#8216;s substantial Japanese investments. Despite initial significant losses, the market managed to recover most of the decline by <a href="https://www.benzinga.com/markets/equities/24/08/40295176/s-p-500-erases-weekly-losses-nasdaq-100-ends-4-week-slide-as-bulls-regain-momentum-fridays-stock">the end of the week</a>.
What Happened: The Nikkei 225 index, a key indicator for Japanese stocks, plummeted by 12.4% last week, marking its worst performance since the 1987 &#8220;Black Monday.&#8221; This triggered a chain <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40181335/global-stock-market-meltdown-has-more-to-do-with-macro-funds-stuck-in-wrong-way-aro">reaction across global markets</a>. 
The sell-off was prompted by a minor rate hike by the Bank of Japan, which raised rates to their highest in 15 years and u<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40294173/dollar-yen-volatility-sparks-debate-over-carry-trade-positioning-we-maintain-a-stru">nwound the yen &#8220;carry trade</a>.&#8221; Despite this, the market was able to recoup most of its losses and finished the week down only 2.5%.
Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>), Buffett&#8217;s holding company, holds an 8% stake in the five leading Japanese trading houses — ITOCHU (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>), Marubeni (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>), Mitsubishi (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MSBHF#OTC">MSBHF</a>), Mitsui &amp; Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MITSF#OTC">MITSF</a>), and Sumitomo (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSUMY#OTC">SSUMY</a>). The initial plunge in these stocks, up to 30%, was followed by a recovery by the end of the week, in line with the broader market.
Berkshire owns an 8% stake in these five major Japanese trading houses with a total investment of around $20 billion. As of the end of 2023, Berkshire had unrealized gains of over $8 billion in these trading houses. Buffett initially disclosed his 5% investment in these companies in 2020 and has pledged not to exceed a 9.9% stake without board approval.
Despite the market turmoil, the Japanese trading houses reported second-quarter earnings that mostly surpassed analyst expectations and maintained their full-year guidance, <a href="https://www.cnbc.com/2024/08/11/how-warren-buffetts-japan-investments-fared-in-the-global-market-rout.html">according</a> to a CNBC report. 
Year to date, Itochu and Mitsubishi shares have risen by over 10%, while Marubeni, Mitsui, and Sumitomo have seen increases of less than 10%.
Outside Japan, Buffett sold significant stock holdings, including half of his Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) stake, raising substantial cash reserves for <a href="https://www.benzinga.com/markets/24/08/40303410/warren-buffett-declares-shift-selling-apple-stock-to-invest-in-this-magnificent-megacap-heres-why">Berkshire in the second quarter</a>. 
See Also: <a href="https://www.benzinga.com/news/24/08/40301145/lawrence-summers-calls-for-sec-investigation-into-unprecedented-vix-movement?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Lawrence Summers Calls For SEC Investigation Into Unprecedented VIX Movement</a>
Why It Matters: Buffett&#8217;s Japanese investments come at a time when his other major moves have drawn significant attention. Recently, Elon Musk commented on Buffett&#8217;s decision to sell nearly half of Berkshire Hathaway&#8217;s stake in Apple Inc. 
Musk suggested that Buffett is &#8220;clearly expecting a correction&#8221; after Berkshire <a href="https://www.benzinga.com/news/24/08/40152088/elon-musk-says-warren-buffett-is-clearly-expecting-a-correction-after-berkshire-sold-nearly-half-of">accumulated a cash reserve of almost $277 billion</a>.
Buffett&#8217;s strategic shift towards Japanese trading houses and away from tech giants like Apple is also reflected in Berkshire&#8217;s <a href="https://www.benzinga.com/markets/24/08/40283605/is-warren-buffett-bearish-or-waiting-to-pounce-berkshire-now-owns-more-t-bills-than-federal-reserve">increased holdings of U.S. Treasury bills</a>. This move has led some to speculate whether Buffett is bearish or simply waiting for the right opportunity to invest.
Buffett&#8217;s influence extends beyond financial <a href="https://www.benzinga.com/news/24/07/40004954/melinda-gates-not-surprised-by-warren-buffetts-new-will-to-form-charity-trust-headed-by-his-children">markets to philanthropy</a>. Recently, he decided to allocate the majority of his remaining wealth to a new charitable trust managed by his children, diverting funds from the Gates Foundation.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40220992/whats-going-on-with-trump-media-technology-stock-today?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">What&#8217;s Going On With Trump Media &amp; Technology Stock Today?</a></li>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Global Market Turmoil Tests Warren Buffett's Japanese Investments: Despite Initial 30% Plunge, Berkshire Hathaway's $20B Bet On Japan's Trading Giants Recovers

The market for coal used to make steel is in the summer doldrums, but supply outages in Australia and the United States are providing underlying tightness that could cause prices to spike in the late summer and fall once Asian <a href="https://www.benzinga.com/topic/steel">steelmakers start restocking.</a>
Mine fires in Australia and West Virginia and a lock and dam closure in Alabama are causing latent tightness that won't become visible until India and China come back to the market between August and October. Once they do, prices are likely to move higher but remain capped below record highs by a sluggish global economy.&nbsp;
"The supply side looks very supportive of met coal prices,"&nbsp;John Berman, chief investment officer with natural resources&nbsp;investment management&nbsp;company&nbsp;Berman Capital Group, told Benzinga. "It's the demand side that is potentially the brakes on any price rally."
Also Read: <a href="https://www.benzinga.com/markets/asia/24/06/39173971/coal-stocks-take-a-breather-as-trading-sentiment-sours-in-commodities-markets-was-the-election-in-in">Coal Stocks Take A Breather As Trading Sentiment Sours In Commodities Markets: Was The Election In India A Factor?</a>
Australia's Grosvenor Outage
Among the top concerns of the market right now is <a href="https://www.benzinga.com/m-a/24/07/39623378/anglo-americans-coal-asset-sale-faces-hurdle-after-fire-at-major-mine">the outage</a> at Anglo American's (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) Grosvenor Mine, which supplies more than 1% of global seaborne steelmaking coal.
An explosion and fire forced the company to suspend production at the mine late last month, knocking out up to 3 million tons of Anglo&#8217;s total expected 15-17 million metric tons of steelmaking coal output for 2024. On Thursday, the miner revised that guidance to 14-15.5 million metric tons.
The day after the explosion, Anglo said the outage could last several months because of likely damage underground.
Last week, Australian mining union officials said they were worried that Grosvenor might close permanently, although they acknowledged that Anglo was trying to recover the mine.
Metallurgical coal prices initially jumped on the Grosvenor news, but then retreated as Anglo reportedly assured customers of third quarter deliveries. However, the company reportedly said it wouldn't be able to meet delivery obligations in the fourth quarter.
"While the incident will continue to provide support and tighten supply, it appears that part of the initial price rally was speculative,"&nbsp;RBC Capital Markets&nbsp;said in a note.
US River Transportation Outage
In the United States, the Army Corp of Engineers closed the Holt Lock and Dam on the Black Warrior River in Alabama on June 22 as a safety precaution because of cracks and leaks. The river is a key artery for barge transportation of coal.
The infrastructure will be closed for three to five months while a new steel-enforced bulkhead can be manufactured, Army engineers said.
The closure means Peabody Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTU#NYSE">BTU</a>) and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37295857/warrior-met-coals-ballooning-development-costs-prompt-analysts-to-rethink-projectio">Warrior Met Coal Inc. </a>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HCC#NYSE">HCC</a>) will have to find alternate transportation, Matthew Warder, an analyst with The Coal Trader newsletter, told Benzinga. The companies didn't respond when asked for comment.
US Longview Mine Outage
On June 30, the Longview Mine in West Virginia caught fire, according to media reports. The federal Mine Safety and Health Administration is investigating the incident. 
As of Friday, the mine remained out of commission, sources familiar with the matter told Benzinga. One of the sources said the mine could reopen this week while another said workers had reentered the mine last week.
Industry chatter suggests the mine won't be back to full production for months, although one of the sources said it is the operator's goal to restart mine production as soon as possible.
The mine operator,&nbsp;Allegheny Metallurgical, didn't respond to requests for comment. Privately held Allegheny is a partnership between privately held U.S.-based companies&nbsp;American Metals &amp; Coal International Inc.&nbsp;and&nbsp;JAZ Ventures, South Korea's&nbsp;Posco Holdings&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKX#NYSE">PKX</a>) and Japan's&nbsp;Itochu Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>) .
Based on a similar incident at Peabody's Shoal Creek Mine last year, Warder said the Longview outage could keep 0.5-1.5 million short tons of high volatile metallurgical coal off the market in 2024 and up to 3.5 million short tons off next year if the mine remains offline.
Higher Prices to Benefit Miners
The three incidents have tightened metallurgical coal supply, but at the moment there isn't a strong upward price reaction because steelmakers in India, China, Europe and Brazil aren't yet looking to make purchases on the spot market to replenish their stocks. Meanwhile, U.S. coking coal buyers are just getting their annual procurement process started this month.
"This is a very sleepy time in the market," Warder said.
Late last month, Australian premium coking coal futures, an industry benchmark, could be seen at $233 per metric ton, a far cry from their record high above $360 set in October.
When heavyweight steel producers India and China come back to the market between August and October, the demand may push prices higher than they would otherwise go if not for the production outages in Australia and the United States.
Warder thinks $300 steelmaking coal prices are in play sometime in the fall, although the market won't get back to the highs from the previous year because of a weaker Chinese economy.
"I think we could see $300 in the short term once the restocking season gets underway, although I don't know how sustainable that price will be with current demand," Berman said, adding that "$360, I think, is very unlikely without robust Chinese demand this year."
Firmer prices stand to benefit coking coal producers, Warder said.
That includes BHP and Alpha Metallurgical Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMR#NYSE">AMR</a>), he added. 
Even with Grosvenor out, Anglo American still stands to benefit from its other metallurgical coal production, he said. And Warrior can use other transportation to get its coal to market, meaning the dam and lock outage isn't a showstopper for the company, he said. Peabody will also be able to get its Alabama coal to market, while it also produces Australian coal to sell, he said.
Berman agrees that Warrior and Alpha will be among the biggest beneficiaries as prices move higher. He also adds Australian miner&nbsp;Whitehaven Coal Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/WHITF#OTC">WHITF</a>) to the list.
"Warrior will likely produce a little more free cash flow through the end of this year than I was expecting," Berman says.
Read Next:
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Private equity giants such as Blackstone Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) have seemingly gobbled up everything in the United States market, from <a href="https://www.google.com/search?q=rover+blackstone+benzinga&amp;oq=rover+blackstone+benzinga&amp;gs_lcrp=EgZjaHJvbWUyCQgAEEUYORigATIHCAEQIRigATIHCAIQIRigATIHCAMQIRigATIHCAQQIRigAdIBCDI2MjZqMGo5qAIAsAIB&amp;sourceid=chrome&amp;ie=UTF-8">pet care</a> to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37719939/is-it-time-to-buy-the-commercial-real-estate-dip-the-worlds-biggest-private-equity-">real estate</a>, even eying a <a href="https://www.benzinga.com/general/sports/24/05/38710804/nfl-rule-could-open-door-for-big-money-investors-will-your-team-go-up-for-sale">purchase of sports teams</a>. The NYC-based investment management company has eyed a new opportunity: <a href="https://www.benzinga.com/topic/japan">the Japanese market</a>. 
What Happened: Nikkei Asia <a href="https://asia.nikkei.com/Business/Finance/Blackstone-eyes-10bn-in-Japan-deals-amid-buyout-fund-influx">reported</a> that Blackstone is planning to invest $9.6 billion in Japan by 2027.
&#8220;There are a number of factors that have come together that have really accelerated growth in the Japanese economy as well as investment opportunities,&#8221; Blackstone President Jonathan Gray told Nikkei. &#8220;It&#8217;s been the return of inflation to the Japanese economy, the strength in the stock market, the policies under Prime Minister [Fumio] Kishida, which have encouraged individual Japanese to move from savers to investors, which we think is very important, the encouragement of companies to focus on return on equity and to look at selling noncore divisions.&#8221;
The iShares MSCI Japan ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>) is up over 9% in 2024 and the Japanese Yen is as weak against the U.S. Dollar as it has been in several decades.
Why it Matters: Blackstone is not alone in pursuing opportunities in the Japanese market. Investment managers, including Bain Capital and KKR &amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>), are increasingly favoring Japan rather than China and India for investment opportunities.
Carlyle Group, which has previously invested in Japan, saw an internal rate of return of 28%, compared with around 8% to 14% for major Carlyle funds with focuses in Europe or Asia, according to Nikkei.
Berkshire Hathaway Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) has made several investments in Japan in recent years. CEO Warren Buffett famously <a href="https://www.nytimes.com/2008/10/17/opinion/17buffett.html">prefers</a> to invest in American companies, but a favorable Japanese interest rate environment led Berkshire to take stakes in the following Japanese conglomerates in 2020:
<ul>
<li>Itochu Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>)</li>
<li>Mitsubishi Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/MSBHF#OTC">MSBHF</a>)</li>
<li>Mitsui &amp; Co., Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/MITSY#OTC">MITSY</a>)</li>
<li>Sumitomo Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSUMY#OTC">SSUMY</a>)</li>
<li>Marubeni Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>)</li>
</ul>
The late vice-chairman Charlie Munger championed <a href="https://www.benzinga.com/startups/23/11/35539422/charlie-munger-raves-about-warren-buffetts-rare-japanese-investment-opportunity-of-a-century-it-was">Berkshire&#8217;s Japanese investments</a>.
&#8220;It was like having God just opening a chest and just pouring money into it,&#8221; Munger said.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/05/38959529/blackstone-to-grant-equity-to-rank-and-file-employees-at-us-buyouts-report">Blackstone To Grant Equity To Rank-And-File Employees At US Buyouts: Report</a>
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Private Equity Giant Blackstone Targets Japanese Market, Anticipates 'Accelerated Growth': Report

The Nikkei 225, an index representing the shares of the 225 largest publicly traded Japanese companies, crossed the 39,000-point threshold, charting a remarkable U-shaped recovery <a href="https://www.benzinga.com/topic/japan">through monumental economic shifts</a>.
However, renowned investor Warren Buffett might not be as hyped about this particular milestone. 
<img decoding="async" src="https://www.benzinga.com/files/images/story/2024/1708616119_0.png" alt="" />
<h2 class="wp-block-heading">A Different Story, For A Dollar-Based Investor</h2>
In January 1990, the global landscape was revolutionized by Japanese technological innovations (i.e., televisions, cameras, and video game consoles). 
During this era, the Nikkei 225 peaked at 38,950 points. This marked a staggering 500% increase over the previous decade, translating to an annualized return of 20%.
For the next 34 years, the Nikkei navigated through the dot-com bubble burst, the 2008 financial crisis, the economic ascent of China, and a prolonged period of tepid Japanese economic growth accompanied by over a decade of negative interest rates.
Its current performance presents a contrasting narrative for foreign investors converting their returns into their own currencies.
The dollar-yen exchange rate is currently hovering at its highest levels since July 1990, fueled by the contrasting monetary policies of the Federal Reserve and the Bank of Japan (BoJ), as well as the varying economic growth trajectories of the United States and Japan.
In a stark departure from the BoJ&#8217;s approach of maintaining interest rates at zero or even negative levels since the end of 2010, the Federal Reserve has escalated the cost of borrowing to highs not seen in over two decades, with rates ranging between 5.25% and 5.5%.
While the Yen-denominated Nikkei has showcased a robust gain of over 160% in the past decade, this achievement is significantly diminished for dollar-based investors like Buffett who opted for the currency unhedged iShares MSCI Japan Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWJ#NYSE">EWJ</a>). 
For them, the return dwindles to just 46%, primarily eroded by the yen&#8217;s depreciation against the dollar. 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48-1024x495.png" alt="" class="wp-image-225537" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/22095115/image-48.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">The Buffett Effect</h2>
Recall last April, when Buffett augmented his investments in Japanese corporations. The Oracle of Omaha set his sights on five major Japanese trading houses: Itochu Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>), Mitsubishi Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MSBHF#OTC">MSBHF</a>), Mitsui &amp; Co. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MITSY#OTC">MITSY</a>), Sumitomo Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMFG#NYSE">SMFG</a>), and Marubeni Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>). 
Those entities are recognized for their diversified business operations and tend to be valued at lower or more reasonable market prices.
The &#8220;Buffett Effect&#8221; arguably catalyzed a wave of renewed enthusiasm and confidence in the Japanese stock market.
After Buffett&#8217;s notable investments in April, the Nikkei index experienced a significant 37% increase. Among the companies Buffett invested in, Mitsubishi was the standout, surpassing the overall performance of the Japanese market.
However, this period also saw the U.S. dollar strengthen dramatically, rising more than 12% against the Japanese yen. This increase in the dollar&#8217;s value had a moderating effect on the actual returns for investors who convert their earnings from Japanese stocks back into dollars. 
Essentially, while the investments in Japanese stocks showed paper gains in yen, the appreciation of the dollar against the yen meant that when these earnings were converted back to dollars, the gains were less impressive than they initially appeared.
Now Read: <a href="https://www.benzinga.com/markets/asia/24/02/37257680/asia-and-europe-markets-gain-gold-advances-and-crude-oil-inches-towards-78-global-market-overview-wh">Asia and Europe Markets Gain, Gold Advances, And Crude Oil Inches Towards $78 &#8211; Global Market Overview While The US Slept</a>
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Japan's Nikkei 225 Hits Record Highs, But Warren Buffett Is Holding The Applause: Here's Why

Since Warren Buffett expressed willingness to raise his exposures to Japanese trading companies on&nbsp;April 10, the Nikkei 225 index, which represents the broad&nbsp;Japanese stock market, registered gains for five straight weeks, increasing by 8%&nbsp;and surging <a href="http://www.benzinga.com/markets/asia/23/04/31742382/buffett-loves-japan-nikkei-stocks-rally-after-berkshire-hathaway-ceo-says-he-raises-bets-in-five-jap" target="_blank">back to November 2021 highs.&nbsp;</a>
In comparison, the S&amp;P 500 index, which is tracked by the SPDR S&amp;P 500 Trust ETF (ARCA: SPY), only gained by 1% over the same time span, thus lagging well behind Japanese equities.&nbsp;
Until Buffett publicly stated his desire to boost his holdings of Japanese stocks, the Nikkei and the S&amp;P 500 had almost&nbsp;equal year-to-date performance, as the chart below shows.&nbsp;
Chart: The Buffett&#39;s Effect | Japanese Stocks&nbsp;Strongly Outperformed U.S. Peers Since Buffett&#39;s Bet In April
<img alt="" src="https://www.benzinga.com/files/u1363475/nikkei225_2023-05-15_18-51-54_3b864.png" style="height:500px; width:100%" />
Why Buffett Loves Japan:&nbsp;Buffett has long had an attraction for the Japanese &quot;sogo sosha,&quot;&nbsp;or trading house companies, which are diversified conglomerates that trade at cheap or discount&nbsp;valuations&nbsp;on the market. Just what Berkshire Hathaway Inc.&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bkr-a#NYSE">BKR-A</a>) CEO&nbsp;needs to hear.&nbsp;
The &quot;Oracle of Omaha&quot;&nbsp;had purchased slightly more than 5% of Japan&#39;s top five trading houses in August 2020:&nbsp;Itochu Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/itocy#OTC">ITOCY</a>), Mitsubishi Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/msbhf#OTC">MSBHF</a>), Mitsui &amp; Co. Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mitsy#OTC">MITSY</a>), Sumitomo ADR&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssumy#OTC">SSUMY</a>), and Marubeni ADR&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/maruy#OTC">MARUY</a>). Buffett&nbsp;then increased his bets twice in November 2022 and April 2023.&nbsp;
How To Invest In Japanese Equities: There are two major exchange-traded funds (ETFs) that provide investors with exposure to Japanese equities.
The primary distinction between them relates to their currency hedging strategies.
The currency-unhedged iShares MSCI Japan ETF (ARCA: EWJ) tracks a market-cap-weighted index that encompasses around 85% of the investable universe of securities traded in Japan. In this case, a U.S.-based investor would be susceptible to swings in the Japanese yen&#39;s performance versus the dollar.
The WisdomTree Japan Hedged Equity Fund (ARCA: DXJ) invests in Japanese dividend-paying firms while hedging against currency swings. In this situation, a U.S.-based investment would not be exposed to currency risk.
Over the previous three years, DXJ has significantly outperformed EWJ by more than 50% due to&nbsp;a sharp rise in the dollar&#39;s relative value to the yen.
Chart: There Has Been A&nbsp;Notable Performance Gap Between Hedged And Unhedged Japanese Equities
<img alt="" src="https://www.benzinga.com/files/u1363475/ewj_2023-05-15_19-19-51_7a0b5.png" style="height:500px; width:100%" />
Read Also:&nbsp;<a href="https://www.benzinga.com/23/05/32369349/lessons-from-berkshire-warren-buffett-2023-shareholders-meeting-do-what-you-are-good-at-remove-toxic" target="_blank">Lessons From Berkshire Warren Buffett 2023 Shareholder&#39;s Meeting: Do What You Are Good At, Remove Toxic People And Be Kind</a>
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Japanese Stocks Rallied Five Weeks In A Row After Warren Buffett's Bet, Outperforming A Nearly Flat S&P 500

Billionaire investor&nbsp;Warren Buffett&nbsp;said in an interview with Nikkei on Tuesday that&nbsp;<a href="https://www.benzinga.com/markets/asia/23/04/31740469/warren-buffett-very-proud-of-japanese-investments-5-tokyo-listed-stocks-berkshire-has-stakes-in" target="_blank">he was proud of his investments in shares of Japanese trading houses.</a>
In his appearance on CNBC&rsquo;s Squawk Box on Wednesday, he elaborated further on the logic behind his Japanese bets.
What Happened:&nbsp;Buffett&rsquo;s agreed that his investment in Japanese stocks reflects his stamp of approval in Japan. This was accurate a couple of years ago too, he said.
&ldquo;I was confounded by the fact that we could buy into these companies and in effect have earnings yield, maybe 14% or something like that, with dividends&hellip;.. that grew 70% during that time and people were investing money at quarter percent or nothing, and then the quarter percent, if they put it out for a year, it wasn&rsquo;t going to grow,&rdquo; the billionaire said.
&ldquo;It&#39;s sure gonna be better than I thought it would be.&quot;
See Also:<a href="https://www.benzinga.com/money/warren-buffetts-forex-strategy" target="_blank">&nbsp;Warren Buffett&#39;s Forex Strategy</a>
Tracing Back Investment History:&nbsp;&nbsp;Buffett told CNBC that the investment in the Japanese trading houses started about four years ago.
&ldquo;I was looking at company after company, as I do every day and I just thought these were big companies. These were companies that I generally understood what they did, somewhat similar to&nbsp;Berkshire Hathaway, Inc.&nbsp;(NYSE:&nbsp;<a href="https://www.benzinga.com/stock/brk-a#NYSE" target="_blank">BRK-A</a>) (NYSE:&nbsp;<a href="https://www.benzinga.com/stock/brk-b#NYSE" target="_blank">BRK-B</a>),&quot; the billionaire investor said.
These stocks were trading at &ldquo;ridiculous&rdquo; prices, compared to the interest rates that prevailed at that time, he said.
Buffett said he, therefore, started buying all five largest trading houses during his 90th birthday (Aug. 30, 2020). The five trading companies Berkshire has stakes in are:
<ul>
<li>Itochu Corp.&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/itocy#OTC" target="_blank">ITOCY</a>)</li>
<li>Mitsubishi Corp.&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/msbhf#OTC" target="_blank">MSBHF</a>)</li>
<li>Mitsui &amp; Co., Ltd&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/mitsy#OTC" target="_blank">MITSY</a>)</li>
<li>Sumitomo Corp.&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/ssumy#OTC" target="_blank">SSUMY</a>) and</li>
<li>Marubeni Corp.&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/maruy#OTC" target="_blank">MARUY</a>)</li>
</ul>
Berkshire picked up an identical 5% stake in each of these companies and Buffett wrote to the CEOs of the companies at that time that he would never buy more than 9.9% in each without their consent.
Since Berkshire&rsquo;s purchases, the dividends of these companies have, on average, gone up by about 70%, he noted.
The investment guru also said Berkshire now owns 7.4% of each of these companies. He also said during his Japanese visit, he met with each of these companies over the past two days.
Buffett said these stocks are long-term bets. &ldquo;We&#39;ll be in these stocks 10-20 years,&rdquo; he said.
Read Next:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/03/31505925/did-warren-buffett-miss-tesla-train-at-bargain-200m-valuation-elon-musk-reminds-investme" target="_blank">Did Warren Buffett Miss Tesla Train At Bargain $200M Valuation? Elon Musk Reminds Investment Guru Of Lost Opportunity</a>
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Warren Buffett Reveals 'Confounding' Fact That Made Him Invest In Japan's Top 5 Trading Firms: 'Better Than I Thought'

Shares of the Nikkei 225, the largest equity index in Japan, increased more than 1% after Berkshire Hathaway Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bkr-a#NYSE">BKR-A</a>) CEO Warren Buffett stated in a media interview with Nikkei press that he plans to increase his exposure to <a href="https://www.benzinga.com/markets/asia/23/04/31740469/warren-buffett-very-proud-of-japanese-investments-5-tokyo-listed-stocks-berkshire-has-stakes-in" target="_blank">Japanese trading houses</a>.&nbsp;
After revealing in August 2020&nbsp;it had purchased somewhat more than 5% of Japan&#39;s top five trading houses &mdash;&nbsp;Itochu Corp. (OTC:&nbsp;<a href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>), Mitsubishi Corp.&nbsp;(OTC:&nbsp;<a href="https://www.benzinga.com/stock/MSBHF#OTC">MSBHF</a>), Mitsui &amp; Co. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mitsy#OTC">MITSY</a>), Sumitomo Corp. (OTC:&nbsp;<a href="https://www.benzinga.com/stock/SSUMY#OTC">SSUMY</a>)&nbsp;and Marubeni Corp. (OTC:&nbsp;<a href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>) &mdash; Buffett expanded its interests in Japanese stocks in November.
Sogo sosha, or Japanese trading corporations, are diversified conglomerates that typically trade at low or cheap market valuations.
Buffett&#39;s favorite Japanese equities trade at single-digit future P/E ratios, giving them an appealing value proposition that has likely piqued the interest of the &quot;Oracle of Omaha,&quot; who is now in Japan on a business trip.
<img alt="" src="https://www.benzinga.com/files/u1363475/koyfin_20230411_013801213.png" style="height:500px; width:968px" />
Itochu CEO Masahiro&nbsp;Okafuji told Nikkei that he is &quot;confident&quot;&nbsp;Buffett thinks the Japanese market justifies more investment. The iShares MSCI Japan Index Fund (ARCA: EWJ) is up 4.8% year-to-date.&nbsp;
Market Reactions To Buffett&rsquo;s Interview: Shares of the five Japanese trading houses rallied more than 2% at the close of the market session in Tokyo.
Mitsubishi Corp. (8058) gained 2%, Mitsui &amp; Co. (8031) was up by 2.7%, Itochu Corp. (8001) by 3%, Sumitomo Corp. (8053) by 3.2% and Marubeni Corp. (8002) by 4.6%.
<img alt="" src="https://www.benzinga.com/files/u1363475/8001_2023-04-11_13-21-48_9c642.png" style="height:500px; width:100%" />
Read Also:&nbsp;<a href="https://www.benzinga.com/news/23/04/31731723/5-of-the-craziest-things-warren-buffett-has-spent-his-money-on" target="_blank">5 Of The Craziest Things Warren Buffett Has Spent His Money On</a>&nbsp;
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Buffett Loves Japan: Nikkei Stocks Rally After Berkshire Hathaway CEO Says He Raises Bets in Five Japanese Trading Houses

Benzinga
<a class="editor-rtfLink" href="https://www.benzinga.com/general/social-media/23/04/31737585/twitter-is-officially-defunct-as-elon-musk-pursues-superapp-goal" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Twitter Inc Is Officially Defunct As Elon Musk Pursues&#39; Superapp&#39; Goal</a>
<ul>
<li>Twitter Inc,&nbsp;the parent company of the namesake social media platform, has ceased to exist, and it has now been merged into&nbsp;X Corp.,&nbsp;court filings show.</li>
<li>&#39;Chief Twit&#39;&nbsp;Elon Musk&nbsp;also appeared to acknowledge the change early on Tuesday by tweeting out &quot;X.&quot;</li>
<li>The development came to light in a court filing of Twitter&#39;s corporate disclosure statement in connection with a lawsuit brought about by right-wing activist Laura Loomer. She is fighting against Twitter banning her account in 2019.&nbsp;</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31738895/hyundais-electric-vision-18b-investment-paves-way-for-companys-commitment-to-electric-cars" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Hyundai&#39;s Electric Vision: $18B Investment Paves Way for Company&#39;s Commitment To Electric Cars</a>
<ul>
<li>Hyundai Motor Company&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hymtf#OTC">HYMTF</a>) plans to invest 24 trillion won ($18.2 billion) by 2030 to boost electrification.</li>
<li>The group, including Hyundai Motor, Kia, and Genesis electric models, expects to expand the annual EV production in Korea to 1.51 million units and global volume to 3.64 million units by 2030.</li>
<li>The investment will be used to upgrade Korea&#39;s EV ecosystem and to promote domestic EV production, R&amp;D, infrastructure, and related industries.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/04/31741627/mixed-results-for-moderna-on-vaccine-day-influenza-vaccine-candidate-testing-to-continue-despite-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Moderna&#39;s Vaccine Day: Influenza Vaccine Candidate Testing To Continue As It Misses&#39; Early Success&#39; Threshold</a>
<ul>
<li>Moderna Inc&#39;s&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mrna#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MRNA</a>) first vaccine candidate against influenza is mRNA-1010, which is being developed in adults.</li>
<li>The independent Data and Safety Monitoring Board (DSMB) has completed the first interim efficacy analysis for the second Phase 3 trial (P302) conducted in the Northern Hemisphere to evaluate the safety and non-inferior efficacy compared to a licensed flu vaccine.</li>
<li>The DSMB said mRNA-1010 did not meet the statistical threshold to declare early success.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/large-cap/23/04/31740193/disclosure-violations-cost-goldman-sachs-15m-as-settlement-in-swap-business" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Disclosure Violations Cost Goldman Sachs $15M as Settlement in Swap Business</a>
<ul>
<li>Goldman Sachs Group Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gs#NYSE">GS</a>) agreed to pay $15 million to settle U.S. Commodity Futures Trading Commission (CFTC) charges that it failed to make proper disclosures and communicate fairly to swap customers.</li>
<li>In 2015 and 2016, Goldman opportunistically solicited or agreed to enter into same-day swaps only on days and at times that were financially advantageous to Goldman and disadvantageous to its clients.&nbsp;</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/large-cap/23/04/31739764/newmont-raises-bid-for-newcrest-takeover-offers-46-premium-to-feb-3-price-at-19-5b-valuation" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Newmont Raises Bid For Newcrest Takeover, Offers 46% Premium to Feb 3 Price At $19.5B Valuation</a>
<ul>
<li>Newmont Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) submitted a final revised takeover offer to&nbsp;Newcrest Mining Limited&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ncmgy#OTC">NCMGY</a>), bidding a 46% premium to the closing price of Newcrest shares as on Feb 3, 2023.&nbsp;</li>
<li>The latest offer values Newcrest Mining at $19.5 billion, making it the largest-ever M&amp;A deal in the gold-mining industry.</li>
<li>Newcrest is Australia&#39;s largest gold miner, which had rejected the previous offer from Newmont at a $17.5 billion valuation. The company initially proposed the acquisition in February 2023.</li>
</ul>
&nbsp;
CNBC
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31737812/chatgpt-rivalry-gets-bigger-alibaba-plans-to-integrate-chatbot-across-products-at-low-cost" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ChatGPT Rivalry Gets Bigger: Alibaba Plans to Integrate Chatbot Across Products at Low Cost</a>
<ul>
<li>On Tuesday,&nbsp;Alibaba Group Holding Limited&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) cloud computing unit shared plans to launch its&nbsp;ChatGPT&nbsp;counterpart Tongyi Qianwen.</li>
<li>Alibaba Cloud initially proposed to deploy Tongyi Qianwen with Chinese and English language capabilities on Slack counterpart DingTalk, Alibaba&#39;s workplace communication software, and Tmall Genie, a provider of smart home appliances.</li>
</ul>
&nbsp;
Nikkei
<a class="editor-rtfLink" href="https://www.benzinga.com/markets/asia/23/04/31740469/warren-buffett-very-proud-of-japanese-investments-5-tokyo-listed-stocks-berkshire-has-stakes-in" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Warren Buffett &#39;Very Proud&#39; Of Japanese Investments: 5 Tokyo-Listed Stocks Berkshire Has Stakes In</a>
<ul>
<li>Billionaire investor&nbsp;Warren Buffett&nbsp;has set his sights on the far east to put his money to work.</li>
<li>Buffett, who runs the investment holding company&nbsp;Berkshire Hathaway&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/brk-a#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BRK-A</a>) (NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/brk-b#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">BRK-B</a>), is &quot;very proud&quot; of his investments in Japanese stocks, the billionaire told in an interview with Nikkei.</li>
<li>Berkshire, in Aug. 2020, picked up more than 5% stake in each of Japan&#39;s five trading houses, namely&nbsp;Itochu Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/itocy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ITOCY</a>),&nbsp;Mitsubishi Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/msbhf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MSBHF</a>),&nbsp;Mitsui &amp; Co., Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/mitsy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MITSY</a>),&nbsp;Sumitomo Corp&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ssumy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SSUMY</a>), and&nbsp;Marubeni Corp.&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/maruy#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MARUY</a>).</li>
</ul>
&nbsp;
Reuters
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31738877/amc-britain-rival-cineworld-files-restructuring-plan-in-bankruptcy-court-shareholders-to-be-wiped-ou" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMC Britain Rival Cineworld Files Restructuring Plan in Bankruptcy Court, Shareholders to be Wiped Out</a>
<ul>
<li>On Tuesday,&nbsp;Cineworld Group PLC&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cnnwq#OTC">CNNWQ</a>) (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cnwgq#OTC">CNWGQ</a>) said it had filed a reorganization plan in a Texas bankruptcy court to dissolve existing shareholdings effectively.</li>
<li>The filing formalizes the cinema chain operator&#39;s Apr 3 deal that includes plans to cut debt by about $4.53 billion and raise $2.26 billion to emerge from bankruptcy.</li>
<li>Cineworld, which expects to emerge from Chapter 11 in the first half of 2023, said any transaction resulting from the marketing process might delay emergence beyond that point.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31738440/boeing-aims-to-reach-pre-crisis-737-max-production-rates-in-2025-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Boeing Aims To Reach Pre-Crisis 737 MAX Production Rates In 2025</a>
<ul>
<li>Boeing Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) expects its 737 MAX jet to return to its 2019 production rate of 52 per month in 2025.</li>
<li>The aircraft maker&#39;s bestselling jet demand nosedived following two deadly crashes and the COVID-19 pandemic.</li>
<li>Boeing currently builds 31 737 MAX jets per month. The company aims to increase monthly MAX production to 38 in June, 42 by January 2024, and 47 by June 2024.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/general/biotech/23/04/31739346/drugmakers-stand-up-for-reproductive-rights-pfizer-and-biogen-among-300-condemning-abortion-pill-" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Drugmakers Stand Up for Reproductive Rights: Pfizer and Biogen Among 300 Condemning Abortion Pill Approval Suspension</a>
<ul>
<li>Last week Friday, a U.S. judge suspended the FDA&#39;s approval of mifepristone, effectively banning sales. Executives from over 300 companies, including&nbsp;Pfizer Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) and&nbsp;Biogen Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/biib#NASDAQ">BIIB</a>), signed an open letter calling to reverse a federal judge&#39;s decision.</li>
<li>The abortion pill has been available since 2000. The letter&#39;s authors wrote that the ruling ignores scientific evidence and legal precedent.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31739074/clear-skies-ahead-chinese-airlines-resume-boeing-737-max-operations-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Clear Skies Ahead: Chinese Airlines Resume Boeing 737 MAX Operations</a>
<ul>
<li>Boeing&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) reportedly disclosed that 11 Chinese airlines had resumed 737 MAX operations as of Apr 10, a positive indication of its efforts to rebuild its business in the world&#39;s second-largest aviation market.</li>
<li>The number of 737 MAX returning to commercial service reached 43, accounting for approximately 45% of the Chinese 737 MAX fleet.</li>
<li>Boeing didn&#39;t name the airlines, but Hainan Airlines Holding Co Ltd, Fuzhou Airlines, Lucky Air, and Air China have all flown the jets in the months.</li>
</ul>
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/04/31740222/mitsubishi-heavy-industries-pockets-2-8b-missile-contracts-from-japan-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Mitsubishi Heavy Industries Pockets $2.8B Missile Contracts From Japan</a>
<ul>
<li>Mitsubishi Heavy Industries Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/mhvyf#OTC">MHVYF</a>) has reportedly secured contracts worth $2.84 billion (378 billion yen) from Japan.</li>
<li>Under the contract, Mitsubishi Heavy will develop and build a new missile force to deter China from using military force in East Asia.</li>
<li>The four contracts include land, sea, and air-launched missiles and a hypersonic ballistic warhead that it wants to begin deploying in 2026, the report quoted Japan&#39;s Ministry of Defense.</li>
</ul>
&nbsp;
Bloomberg
<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/04/31738465/antitrust-penalty-south-korea-hits-google-with-32m-fine-for-anti-competitive-mobile-app-behavior" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Antitrust Penalty: South Korea Hits Google with $32M Fine for Anti-Competitive Mobile App Behavior</a>
<ul>
<li>South Korea penalized&nbsp;Alphabet Inc&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>)&nbsp;Google&nbsp;42.1 billion won ($32 million) for exploiting its influence in the mobile app market to drive away a local rival.</li>
<li>Google tried to block Korean platform rival&nbsp;One Store Co&#39;s&nbsp;growth, Bloomberg cites&nbsp;Korea&#39;s Fair Trade Commission&#39;s&nbsp;statement.</li>
<li>Google has denied offering benefits to developers who put their apps only on Google Play.</li>
</ul>
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Twitter Inc Is Officially Defunct, Alibaba Plans to Integrate ChatGPT Like Chatbot Across Products, Moderna's Flu Shot Study Misses 'Early Success' Criteria: Today's Top Stories

Billionaire investor <a href="https://www.benzinga.com/news/23/04/31731723/5-of-the-craziest-things-warren-buffett-has-spent-his-money-on">Warren Buffett </a>has set his sights on the far east to put his money to work.
What Happened: &nbsp;Buffett, who runs the investment holding company, Berkshire Hathaway (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>), is "very proud" of his investments in Japanese stocks, the billionaire <a href="https://asia.nikkei.com/Editor-s-Picks/Interview/Warren-Buffett-says-he-intends-to-add-to-Japanese-stock-holdings2">told</a> in an interview with Nikkei.
Berkshire in Aug. 2020 picked up more than 5% stake in each of Japan's five trading houses, namely Itochu Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITOCY#OTC">ITOCY</a>), Mitsubishi Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MSBHF#OTC">MSBHF</a>), Mitsui &amp; Co., Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MITSY#OTC">MITSY</a>), Sumitomo Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSUMY#OTC">SSUMY</a>) and Marubeni Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MARUY#OTC">MARUY</a>), the report said.
He then went on to augment the stakes in Nov. 2022, it added.
The "Oracle of Omaha" reportedly said he would meet with these companies this week to have a discussion about their businesses and emphasize his support.
See Also: <a href="https://www.benzinga.com/money/how-to-invest-in-startups">How To Invest In Startups</a>
Why It's Important: Buffett is a proponent of value investment – a strategy of picking up businesses at a discount to their intrinsic value. Berkshire's top holdings include Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Coca-Cola Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), among others. The company has recently been <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/03/31523799/how-much-1-000-invested-in-occidental-when-warren-buffett-bought-the-stock-at-onset-of-r">building a position in the upstream oil and gas company Occidental Petroleum Corp </a>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>).
Buffett's Berkshire has also invested in other Asian companies such as BYD Company Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>).
Read Next: <a href="https://www.benzinga.com/news/23/02/31060887/warren-buffett-says-in-58-years-of-managing-berkshire-his-decisions-no-better-than-so-so-heres-his-s">Warren Buffett Says In 58 Years Of Managing Berkshire His Decisions &#8216;No Better Than So-So&#8217;: Here&#8217;s His &#8216;Secret Sauce&#8217;</a>

BYDDY

Warren Buffett 'Very Proud' Of Japanese Investments: 5 Tokyo-Listed Stocks Berkshire Has Stakes In

Warren Buffett-led&nbsp;Berkshire Hathaway Inc&nbsp;(NYSE:&nbsp;BRK-A) (NYSE:&nbsp;BRK-B) has raised its stakes in Japan&#39;s five biggest trading houses, regulatory filings showed.
The move is in line with Berkshire&#39;s statement in 2020 that its investments in the Japanese trading houses were for the long term and the stakes could rise to 9.9%.
Berkshire&#39;s stakes have increased to 6.59% from 5.04% in&nbsp;Mitsubishi Corp, to 6.62% from 5.03% in&nbsp;Mitsui &amp; Co Ltd&nbsp;(OTC: MITST), to 6.21% from 5.02% in&nbsp;Itochu Corp&nbsp;(OTC:&nbsp;ITOCF) (OTC:&nbsp;ITOCY), to 6.75% from 5.06% in&nbsp;Marubeni Corp&nbsp;(OTC:&nbsp;MARUY) (OTC:&nbsp;MARUF), and to 6.57% from 5.04% in&nbsp;Sumitomo Corp.
Takashi Hiroki, the chief strategist at Monex,&nbsp;said&nbsp;he was not surprised that Berkshire had bought more shares, Reuters reported.
&quot;Trading companies&#39; high stock prices are associated with high commodities prices, but there&#39;s much more to their businesses than that,&quot; he said. &quot;Their earnings are good, and shareholder returns are strong.&quot;
Berkshire&#39;s increased investments in the trading houses come after it bought more than $4.1 billion of stock in&nbsp;Taiwan Semiconductor Mfg. Co. Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>), a significant foray into the technology sector by the conglomerate.
Photo via Wikimedia Commons

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Warren Buffett's Berkshire Boosts Stake In Five Japanese Trading Houses

Legendary investor Warren Buffett&#39;s ability to identify&nbsp;and buy the stock&nbsp;of up-and-coming publicly&nbsp;traded companies has been key to&nbsp;the success&nbsp;of Berkshire Hathaway (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-a#NYSE">BRK-A</a>)(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NYSE">BRK-B</a>).
Along with owning Geico, Dairy Queen, Duracell, Fruit of the Loom, See&rsquo;s Candies and other companies, Berkshire Hathaway owns large stakes in some of the biggest and most well-known companies.
Investments have been selected by Buffett, also known as the Oracle of Omaha, along with&nbsp;Todd Combs and Ted Weschler, two long-time investment managers of Berkshire Hathaway.
&ldquo;We own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves,&rdquo; Buffett said. &ldquo;On occasion, it becomes easy to buy pieces of wonderful businesses at wonderful prices.&quot;
Here is a look at the<a href="https://www.berkshirehathaway.com/2021ar/2021ar.pdf"> top 10&nbsp;stock positions</a> owned by Berkshire Hathaway as of December 31, 2021.
Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)
Shares Owned: 907,559,761
Cost: $31.1 billion
Market Value: $161.2 billion
Percent of Company Owned: 5.6%
Bank of America Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bac#NYSE">BAC</a>)
Shares Owned: 1,032,852,006
Cost: $14.6 billion
Market Value: $46.0 billion
Percent of Company Owned: 12.8%
American Express Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axp#NYSE">AXP</a>)
Shares Owned: 151,610,700
Cost: $1.3 billion
Market Value: $24.8 billion
Percent of Company Owned: 19.9%
Coca-Cola (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ko#NYSE">KO</a>)
Shares Owned: 400,000,000
Cost: $1.3 billion
Market value: $23.7 billion
Percent of Company Owned: 9.2%
Moody&rsquo;s Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mco#NYSE">MCO</a>)
Shares Owned: 24,669,778
Cost: $248 million
Market Value: $9.6 billion
Percent of Company Owned: 13.3%
Verizon Communications (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>)
Shares Owned: 158,824,575
Cost: $9.4 billion
Market Value: $8.3 billion
Percent of Company Owned: 3.8%
U.S. Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/usb#NYSE">USB</a>)
Shares Owned: 143,456,055
Cost: $5.4 billion
Market Value: $8.1 billion
Percent of Company Owned: 9.7%
BYD Co (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>)
Shares Owned: 225,000,000
Cost: $232 million
Market Value: $7.7 billion
Percent of Company Owned: 7.7%
Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>)
Shares Owned: 38,245,036
Cost: $3.4 billion
Market Value: $4.5 billion
Percent of Company Owned: 2.0%
Bank of New York Mellon Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bk#NYSE">BK</a>)
Shares Owned: 66,835,615
Cost: $2.9 billion
Market Value: $3.9 billion
Percent of Company Owned: 8.3%
Other top holdings by Berkshire Hathaway include General Motors Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>), ITOCHU Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/itocy#OTC">ITOCY</a>), Mitsubishi Corporation, Charter Communications (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chtr#NASDAQ">CHTR</a>) and Mitsui &amp; Co.
Berkshire Hathaway owns 26.6% of Kraft Heinz Co (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/khc#NASDAQ">KHC</a>), which is recognized as equity and not by market value. The stake is worth $13.1 billion as of December 31, 2021. Berkshire Hathaway also holds a $10.7 billion investment in Occidental Petroleum Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oxy#NYSE">OXY</a>) consisting of preferred stocks and warrants.
Berkshire Hathaway posted net earnings of $89.8 billion in fiscal 2021 compared to net earnings of $42.5 billion in fiscal 2020.
Shares of Berkshire Hathaway were up 29.6% in 2021 compared to a gain of 28.7% for the S&amp;P 500. Berkshire Hathaway shares have gained an annual average of 20.1% versus a gain of 10.5% for the S&amp;P 500 since 1965.
Related Link: <a href="https://www.benzinga.com/general/movers-shakers/21/08/17298128/warren-buffett-turns-91-a-highlight-for-each-decade-of-his-life">A Highlight For Each Decade Of Warren Buffett&#39;s Life&nbsp;</a> 
Photo: Courtesy of&nbsp;<a href="https://www.flickr.com/photos/fortunelivemedia/" id="yui_3_16_0_1_1645792485323_388009" title="Go to Fortune Live Media's photostream">Fortune Live Media</a>&nbsp;on Flickr

Education

CHTR

Top 10 Stock Holdings Of Berkshire Hathaway And Warren Buffett

Warren Buffett-led Berkshire Hathaway Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-a#NYSE">BRK-A</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/brk-b#NYSE">BRK-B</a>) late Sunday announced it has purchased passive stakes in five of the largest Japanese trading companies.
What Happened: The trading companies, referred to as &ldquo;Sogo Shosha&rdquo; in Japan, include Itochu Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/itocy#OTC">ITOCY</a>), Marubeni Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/maruy#OTC">MARUY</a>), Mitsubishi Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/msbhy#OTC">MSBHY</a>), Mitsui &amp; Co. Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mitsy#OTC">MITSY</a>), and Sumitomo Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssumf#OTC">SSUMF</a>).
Berkshire said it has acquired a 5% stake in each of the five companies. The Omaha-based company pledged that, while it intended to hold these investments long term, it wouldn&rsquo;t have ownership above 9.99% in any of the Sogo Shosha at any point in the future.
&ldquo;The five major trading companies have many joint ventures throughout the world and are likely to have more of these partnerships,&rdquo;&nbsp;Buffett said in a statement.
&ldquo;I hope that in the future there may be opportunities of mutual benefit.&rdquo;
Why It Matters: According to data compiled by <a href="">Bloomberg</a>, the investments, made through subsidiary National Indemnity, are worth above $6 billion.
This also marks a rare push away from the United States companies for Buffett, who famously <a href="">said</a> that &ldquo;never bet against America,&rdquo; as earlier <a href="">noted</a> by analyst Quoth the Raven.
Buffett <a href="">turned 90 years old</a> on Sunday, and counts Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Bank of America Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bac#NYSE">BAC</a>) as <a href="">some of his biggest</a> holdings.
Price Action: Berkshire Class A shares closed 0.5% higher at $327,431 on Friday, and Class B shares closed 0.77% higher at $218.55.
Photo courtesy: freeimage4life via Flickr

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Warren Buffett's Berkshire Buys 5% Stake Each In Japan's 5 Largest 'Sogo Shosha'

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