Is Buffett's $6bn bet on Japan trading houses a signal to others?

Berkshire sticks to value investing creed but critics point to lack of focus

Warren Buffett: Market watchers in Japan are focused on whether Berkshire Hathaway's bet on Japanese trading companies will lead foreign investors to take a fresh look at Japanese stocks. © AP

JADA NAGUMO, Nikkei staff writer

September 1, 2020 19:02 JST

TOKYO -- Warren Buffett has made a surprise investment of over $6 billion in five big Japanese trading houses, a move that could prompt other foreign investors to take another look at the Japanese stock market.

Buffett's Berkshire Hathaway revealed a long-term bet in acquiring a stake of slightly more than 5% in Japan's main trading houses, Itochu, Marubeni, Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp.