Warren Buffett's Berkshire Hathaway once again increased its stakes in five Japanese trading houses, and Jefferies said watch out for more such buying from the "Oracle of Omaha."
Thanh Ha Pham, equity analyst at Jefferies, said Berkshire's holdings in these companies could go even beyond 10% in the future, and collaboration with Berkshire's businesses is another avenue to explore.
The 92-year-old Buffett paid a visit to Japan and met with the heads at these Japanese firms earlier this year.
Like Berkshire, the Japanese trading firms, also known as sogo shosha, are conglomerates that are involved in a wide range of products and services, including energy, machinery, chemicals, food, finance and banking.
"By investing in trading houses, investors obtain a well-diversified business portfolio that is not exposed to any single industry or geography," Pham said.
Persons:
Warren, Berkshire Hathaway, Jefferies, Thanh Ha Pham, Warren Buffett, Pham, Buffett
Organizations:
National Indemnity Company, Mitsubishi, Mitsui, Sumitomo, Jefferies, Tokyo Stock Exchange, Itochu
Locations:
Omaha, Itochu, Berkshire, Japan