Japanese trading house stocks rose on Thursday after Berkshire Hathaway CEO Greg Abel said the company plans to keep its stakes in the five major Japanese trading firms for decades. The group was among the top-performing segments within the Tokyo Stock Exchange Price Index, with Mitsubishi Corp. climbing as much as 4.5%, its highest level since May. Sumitomo Corp., Mitsui & Co., Itochu Corp. and Marubeni also gained more than 2.5% each. Berkshire currently owns about 10% of each of the five companies. In a CNBC interview on Wednesday, Abel, who succeeded Warren Buffett as chief executive in January this year, described the positions as a long-term investment. Since Berkshire disclosed the holdings in 2020, the trading houses’ share prices have drawn support from their association with Buffett. A market analyst at Tokai Tokyo Intelligence Laboratory said Abel’s renewed expression of confidence could revive investor buying interest in the sector.
Japanese trading house stocks rose on Thursday after Berkshire Hathaway Chief Executive Officer Greg Abel said the company plans to hold its stakes in the country’s five major trading houses for decades.
The sector was among the biggest gainers in the Tokyo Stock Exchange Price Index on Thursday. Mitsubishi Corp. rose as much as 4.5%, reaching its highest level since May. Sumitomo Corp., Mitsui & Co., Itochu Corp. and Marubeni each climbed more than 2.5%.
Berkshire currently owns about 10% of each of the five trading houses. In an interview with CNBC on Wednesday, Abel, who took over as CEO from Warren Buffett in January this year, said Berkshire’s holdings in the Japanese trading houses are a “long-term investment,” and that the company plans to keep them for decades.
Since Berkshire disclosed the stakes in 2020, the share prices of the Japanese trading houses have continued to benefit from their association with Buffett. A market analyst at Tokai Tokyo Intelligence Laboratory said Abel’s renewed show of confidence “could reignite investor buying interest in trading house stocks.”
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