United States, NY – The pandemic had caused a massive shift in the world’s economies that had brought out many ways to handle the inflation and strained markets through such massive steps as the Ant Group IPO that had managed to take the world scope forcing Warren Buffet’s Berkshire Hathaway Inc into stepping into a $6.2 billion foray with Japan’s five largest trading houses.
Mitsubishi Corp, Mitsui & Co Ltd, Marubeni Corp, Itochu Corp and Sumitomo Corp all have 55 of their company owned by the 90 year old Warren Buffer who claimed that he plans to increase Berkshire’s stakes to 9.9%.
The classic value stock format of the trading houses that are better known as “sogo shosha” hold a diverse business line that includes commodity exploration that fits the taste of the legendary investor who believes that the format had lost favor with many investors over the years.
Berkshire investors were supportive of Warren Buffet’s bid when in the 1990s tech bubble , the U.S stock valuations were at their highest as they were lifted by economy giants such as Apple inc and Amazon.com which are entities Bekshire currently invest in.
“The inflation cocktail is being mixed and Buffett is migrating his investment to where you can create value through inflation. These are companies that will make more money if the price of oil [or] any input goes up.”said chief investment officer at Smead Capital Management Bill Smead as he explained that his company invested nearly 3% of its assets in Berkshire.
“Warren is trying to expand his horizon but stick to his value investing roots at a time the U.S. market is very expensive,” said president of Lountzis Asset Management Paul Lountzis which invests a fraction in Berkshire applauding the move.
“Buffett certainly loves the United States. Considering that he was able to tap into companies with a global network and their fingers in a lot of pies at an attractive price, that is a winning combination.” said James Armstrong, president of Henry H. Armstrong Associates who is among the many investors who invest in Berkshire following the lead of Warren Buffet’s choice.
Chinese electric car maker, BYD Co is one of the many companies around the world that Berkshire has an investment in. Berkshire currently holds a $145 billion cash pile.
The temptation for the Japanese companies to grab at the $6.2 billion seems tempting but many are stating that Warren Buffet is playing on “clear armitage” to help trim down the inflatable money he has already amassed in Berkshire Hathaway Inc.
