A key point of his recent presentation in the Stock Exchange was the growing interest of his investment fund, Berkshire Hathaway, in Japan companies.
Warren Buffett, again showed why he is one of the main Gurúes Financials of the world. In his last letter to the shareholders he highlighted the performance of Berkshire Hathaway that surpassed the expectations In the fourth quarter of last year, with juicy yields. However, he left clues of what he believes will be a key point this year: his interest in Japan.
Warren Buffett strengthens your investment in Japan
Warren Buffett He highlighted the growing investment in Japan by the company. These Japanese companies, operationally similar to Berkshire, have participations in a wide variety of businesses, many of them based in Japan, but others with worldwide operations.
Buffett shared in his letter that Berkshire began acquiring shares of these five companies almost six years ago, with the first purchase made in July 2019. Companies include Ittochu, Marubeni, Mitsubishi, Mitsui and Sumitom.
In this regard, he said: “We simply analyze their financial records and we were surprised by the low prices of their actions. Over the years, our admiration for these companies has not stopped growing. “
According to Buffett, these five companies are characterized by their favorable practices for shareholders. Dividends increase when appropriate, they repurchase actions when they are advantageous and maintain executive compensation programs.
What will happen to Berkshire in the short term
Buffet said that “it will not spend much time before Greg Abel replaces me as CEO and who writes the annual letter. ” He added that both value the capital deployment strategy, the management and the attitude towards the investors of these Japanese companies.
In addition, Buffett expressed his commitment to long -term investments in these companies, supporting their boards of directors and maintaining the shares below 10% of the shares of each company. However, since Berkshire approaches this limit, The five companies accepted to relax that roof, allowing Berkshire to increase their participation even more.
Berkshire reported a 71% increase in their operational profits, reaching US $ 14,500 million in the fourth quarter. In addition, its cash reserves grew to a record of US $ 334.2 billion at the end of 2024, marking the tenth consecutive quarter of growth.
Source: Ambito
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