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A Mitsui & Co. spokesperson affirmed via email that the company sees this increased holding as "a sign of Berkshire's continued trust in our company, and we will strive to further enhance our business portfolio." The spokesperson added that Berkshire's stake in Mitsui, calculated on a voting rights basis, has not yet exceeded the 10% threshold. According to Bloomberg data, Berkshire's holding in Mitsui stood at 9.82% as of March.
Mitsubishi Corp. shares saw a jump of up to 2.9%, marking their largest gain in three weeks, following the resumption of trading on the Tokyo Stock Exchange after the midday break. Mitsui & Co. shares also rose by as much as 1.8%.
"Berkshire’s continued holding in Japanese trading houses (often referred to as ‘shoshas’ in the industry) has brought renewed attention to them," stated Norikazu Shimizu, an analyst at Iwai Cosmo Securities. He added that these companies are becoming "more active" in boosting shareholder returns through means such as share buybacks.
According to Buffett's annual letter to shareholders, released in February of this year, Berkshire Hathaway originally intended to keep its stakes in the Japanese trading houses below the 10% mark. However, the Japanese companies have agreed to "moderately" relax this limit.
Berkshire's stake-increasing moves have also provided support for the overall Japanese stock market. Itochu shares rose by as much as 3.5%, Marubeni Corp. by 2.7%, and Sumitomo Corp. by 1.6%. As of this writing, the three companies have not responded to requests for comment.
It's important to note that these Japanese trading houses play a vital role in the global economy, acting as a crucial link between producers and consumers worldwide. Berkshire Hathaway's investment in these companies reflects a recognition of their strategic importance and long-term growth potential.
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