Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Muni Bonds Face Many Post-Election Possibilities
    • The ‘Real Reason’ Why You Can’t Buy Individual Government Bonds in NISA|中島武信(日銀出身、東大数学博士)
    • AWSHX – American Funds Washington Mutual Investors Fund Class A NAV & Performance
    • 3 Technology Mutual Funds for Fantastic Returns
    • From Managing Investment Portfolios To Leading A Mutual Fund Business, Ashutosh Bhargava Takes Charge As Neo Mutual Fund CEO After His Nippon India Stint
    • ANUU, ANDD & ANSS: Leverage Shares by Themes Announces Leveraged & Short Anthropic ETFs Ahead of ANT IPO
    • Ashutosh Bhargava appointed CEO at Neo Mutual Fund
    • His Paper Savings Bonds Can Be Converted Into Electronic Ones, So They Can’t Be Lost in a Drawer or a Move
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Investments»How Warren Buffett’s Japan investments fared in the global market rout
    Investments

    How Warren Buffett’s Japan investments fared in the global market rout

    August 11, 2024


    This week’s violent global market meltdown started in Japan — where Warren Buffett has big investments — but the damage was limited. The Nikkei 225 index , a benchmark for Japanese stocks, plunged 12.4% on Monday, its worst day since “Black Monday” in 1987, triggering a domino effect globally. The sell-off was triggered by a small rate hike by the Bank of Japan , lifting rates to their highest in 15 years and unwinding of the yen “carry trade.” But the market managed to recoup most of the steep losses and closed the week down only 2.5%. The stocks Buffett holds cratered as much as 30% initially, but bounced back by the end of the week along with the broader market. Berkshire Hathaway , Buffett’s holding company, owns an 8% stake in each of the five leading Japanese trading houses— Itochu , Marubeni , Mitsubishi , Mitsui and Sumitomo — with its total investment worth about $20 billion. Mitsui fared the worst this week, down 6.2%, while Mitsubishi was the outperformer with a decline of just 1.7%. The Japanese trading houses also reported second-quarter earnings earlier this week, mostly exceeding analyst expectations and maintaining their full-year guidance. Year to date, shares of Itochu and Mitsubishi are up by more than 10%, while Marubeni, Mitsui and Sumitomo have risen less than 10%. $8 billion paper profit The Oracle of Omaha first started selling Japanese debt in 2019 and used the proceeds to fund Berkshire’s purchase of stakes in five local mini-conglomerates, known as sogo shosha , that import everything from energy and metals to food and textiles into resource-scarce Japan. By issuing yen bonds, Buffett has been able to limit currency risk when buying stocks overseas. The dollar has strengthened against the yen by more than 30% since 2019 despite the spike in the Japanese currency in the past two weeks. Berkshire had made unrealized gains of more than $8 billion in the five trading houses as of the end of 2023. Buying more? Buffett disclosed his initial 5% investment in each of the companies on his 90th birthday in 2020. He said that it took roughly 12 months to acquire the stakes through regular purchases on the Tokyo Stock Exchange. The 93-year-old investment guru has pledged that he will not take his stakes beyond 9.9% unless approved by each company’s board of directors. Given that his stake is currently at about 8%, it’s likely the legendary investor was picking up bargains during this week’s sell-off. In April, the Omaha-based Berkshire priced additional yen bonds worth $1.7 billion, a sign that Buffett could be gearing up to put more capital in Japan. Away from Japan, Buffett was in a selling mood in the second quarter. Last week, ahead of the global rout, it was revealed that Buffett dumped a lot of stock, including half of his Apple stake , and raised an unprecedented cash fortress for Berkshire in the second quarter. Many Buffett watchers viewed his prescient moves as a negative call on the markets and the economy.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Desjardins Investments announces the launch of the Desjardins Sustainable Systematic Global Equity Fund

    November 9, 2026

    AI economics: How to decide which AI investments are worth scaling

    November 6, 2026

    Asset Owner Insights: CPP Investments says sustainable investing must evolve

    November 6, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The ‘Real Reason’ Why You Can’t Buy Individual Government Bonds in NISA|中島武信(日銀出身、東大数学博士)

    November 9, 2026

    ANUU, ANDD & ANSS: Leverage Shares by Themes Announces Leveraged & Short Anthropic ETFs Ahead of ANT IPO

    November 9, 2026

    After the Midterms, Which of These 3 Defense ETFs Looks Strongest?

    November 8, 2026

    Muni Bonds Face Many Post-Election Possibilities

    November 9, 2026
    Don't Miss
    Bonds

    Muni Bonds Face Many Post-Election Possibilities

    November 9, 2026

    Politicians, particularly when they’re on the winning end of the deal, often say elections have…

    The ‘Real Reason’ Why You Can’t Buy Individual Government Bonds in NISA|中島武信(日銀出身、東大数学博士)

    November 9, 2026

    AWSHX – American Funds Washington Mutual Investors Fund Class A NAV & Performance

    November 9, 2026

    3 Technology Mutual Funds for Fantastic Returns

    November 9, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Fort Bend ISD trustees strike new elementary school from 2023 bond projects – Houston Public Media

    October 24, 2024

    Pension funds in subtle shift to corporate bonds, private equity

    November 24, 2025

    Bitcoin ETFs Trim 2026 Losses With Strong March Demand

    March 26, 2026
    Our Picks

    Muni Bonds Face Many Post-Election Possibilities

    November 9, 2026

    The ‘Real Reason’ Why You Can’t Buy Individual Government Bonds in NISA|中島武信(日銀出身、東大数学博士)

    November 9, 2026

    AWSHX – American Funds Washington Mutual Investors Fund Class A NAV & Performance

    November 9, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    🇮🇸 CPP Investments and Equinix complete atNorth acquisition to support growth of leading Nordic data center platform

    September 1, 2026
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.