The Asian companies in Buffett's Berkshire Hathaway portfolio have experienced significant growth, with one achieving a remarkable 30% increase.
- In 2024, one of the five Asian trading firms in Berkshire Hathaway's portfolio, Itochu Corp, experienced a 30% increase in value.
- In 2020, Berkshire Hathaway made significant investments in five of Japan's largest sogo-shosha, or general trading companies, which are also among the country's biggest.
- On Wednesday, Berkshire became the first non-technology company in the U.S. to reach a $1 trillion market capitalization.
In 2024, one of the five trading firms in Warren Buffett-backed portfolio, namely , experienced a 30% surge.
In 2020, Berkshire Hathaway made significant investments in five of Japan's largest sogo-shosha, or general trading companies, which are also among the country's biggest.
Japan's economic growth was significantly influenced by its trading houses, which deal in various products and materials.
Buffett is attracted to diversified operations that operate as global venture capital and private equity businesses.
On Wednesday, Berkshire became the first non-technology company in the U.S. to reach a $1 trillion market capitalization.
The company's value was $994.58 billion as of Thursday morning, with shares increasing by 30.3% in 2024, outpacing the S&P 500's 17.24% increase.
Its portfolio consists mainly of American companies, with Apple, American Express, Bank of America Corp., and Coca-Cola Co. being the largest holdings, despite also investing in Japanese and Chinese equities.
Here are the Asian companies which Berkshire has invested in:
Japan's largest trading houses
According to LSEG data, in 2024, the shares of , , , and have increased by 33.3%, 29.8%, 14.6%, and 9%, respectively.
Berkshire increased its ownership stake in the top five trading firms to approximately 9% in its 2023 annual report, compared to 6-7% in 2022.
Berkshire maintains its long-term stake in five large Japanese companies, each with diverse operations similar to Berkshire's own.
The company observed that all five companies adhere to shareholder-friendly policies that are significantly better than typical practices in the U.S.
"The number of outstanding shares of each of the five has been reduced at attractive prices."
China's largest EV maker BYD
In 2008, Berkshire Hathaway purchased approximately 225 million shares in Chinese EV manufacturer BYD for about $230 million.
The bet on the EV market's growth in China and other regions proved to be highly profitable.
The shares of BYD, listed in Hong Kong, have increased by approximately 6% this year, while its Shenzhen-listed shares have experienced a growth of nearly 19%.
Berkshire Hathaway has reduced its stake in BYD to 4.94%, according to LSEG. Joel Ying, a Nomura analyst, mentioned intense competition in the Chinese EV market as a possible reason for this decision in July.
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