# Berkshire boosts stakes in Japan's five biggest trading houses **URL:** \ **Category:** Stocks A to Z\ **Tags:** berkshire-hathaway\ **Created:** [November 21, 2022, 2:30pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280 "2022-11-21T14:30:21Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![BreckHutHigh](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/breckhuthigh/32/3548_2.png) [@BreckHutHigh](https://discussion.fool.com/u/BreckHutHigh)\ **Post date:** [November 21, 2022, 2:30pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/1 "2022-11-21T14:30:21Z")
> **[Buffett's Berkshire boosts stakes in Japan's five biggest trading houses](https://www.reuters.com/markets/deals/buffetts-berkshire-boosts-stakes-japans-five-biggest-trading-houses-2022-11-21/)** > > Berkshire Hathaway Inc , run by billionaire Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday, sending shares higher. and is issuing Yen denominated bonds: [https://www.sec.gov/Archives/edgar/data/1067983/000119312522289445/d372820d424b5.htm](https://www.sec.gov/Archives/edgar/data/1067983/000119312522289445/d372820d424b5.htm) ---
**Author:** ![mdtls](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/mdtls/32/3337_2.png) [@mdtls](https://discussion.fool.com/u/mdtls)\ **Post date:** [November 21, 2022, 4:21pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/3 "2022-11-21T16:21:39Z")
Not sure I clearly understand what a ‘trading house’ is. Is there an equivalent in the US economy that might help me understand? Thx. ---
**Author:** ![rnam](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rnam/32/2767_2.png) [@rnam](https://discussion.fool.com/u/rnam)\ **Post date:** [November 21, 2022, 5:12pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/4 "2022-11-21T17:12:00Z")
No exact equivalent. They are more common in Japan and some other Asian countries. The Swedish company Investor AB is similar. You can think of them as conglomerates with diverse manufacturing, services and trading subsidiaries. Not too different from Berkshire without the huge insurance business. ---
**Author:** ![nola622](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/nola622/32/3597_2.png) [@nola622](https://discussion.fool.com/u/nola622)\ **Post date:** [November 21, 2022, 5:25pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/5 "2022-11-21T17:25:59Z")
> **[Sogo shosha](https://en.wikipedia.org/wiki/Sogo_shosha)** > > Sogo shosha (総合商社, sōgō shōsha, or general trading companies) are Japanese companies that trade in a wide range of products and materials. In addition to acting as intermediaries, sōgō shōsha also engage in logistics, plant development and other services, as well as international resource exploration. Unlike trading companies in other countries, which are generally specialized in certain types of products, sōgō shōsha have extremely diversified business lines, in which respect the business model ... ---
**Author:** ![rogermunibond](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rogermunibond/32/3452_2.png) [@rogermunibond](https://discussion.fool.com/u/rogermunibond)\ **Post date:** [November 21, 2022, 6:46pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/6 "2022-11-21T18:46:17Z")
[https://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=1123&context=njilb](https://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=1123&context=njilb) Interesting academic article on the trading companies. Page 7-14 cover the role of sogoshosha in Japan - circa 1980s (this is an old paper). Page 15-21 cover the history of the sogoshosha ---
**Author:** ![WEBspired](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/webspired/32/3919_2.png) [@WEBspired](https://discussion.fool.com/u/WEBspired)\ **Post date:** [November 21, 2022, 9:12pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/7 "2022-11-21T21:12:57Z")
Is our current valuation of our ownership of these now in the $11-12B range? Thanks. ---
**Author:** ![Jtrau](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jtrau/32/868_2.png) [@Jtrau](https://discussion.fool.com/u/Jtrau)\ **Post date:** [November 21, 2022, 9:24pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/8 "2022-11-21T21:24:14Z")
Investor does not do any trading, as far as I know. ---
**Author:** ![nola622](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/nola622/32/3597_2.png) [@nola622](https://discussion.fool.com/u/nola622)\ **Post date:** [November 21, 2022, 10:00pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/9 "2022-11-21T22:00:06Z")
> [@WEBspired](#): > > Is our current valuation of our ownership of these now in the $11-12B range? Thanks. Yes, the current US Dollar market value of the 5 holdings is almost exactly $11 Billion today, but that doesn’t capture the entire picture since a material portion of the gains are reflected in the “currency hedge” portion of the trade, where Berkshire has borrowed the funds to make these investments in JPY which has declined against the USD. There is also a significant positive carry on the difference between the dividend yields these companies are paying and the almost-zero interest Berkshire is paying on the JPY bonds. It was a good trade and these companies are still inexpensive and likely to continue higher. Warren still knows what he is doing. Phew ---
**Author:** ![bigshan](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/bigshan/32/3511_2.png) [@bigshan](https://discussion.fool.com/u/bigshan)\ **Post date:** [November 21, 2022, 10:25pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/10 "2022-11-21T22:25:30Z")
Last time when Buffett bought the Japanese stocks, he simultaneously sold bonds denominated in Japanese yen, and the stock dividend rates were much higher than the bond interest rates. Last quarter, BRK booked a few hundreds millions USD gain on the reduced liability of bonds denominated in foreign currencies. I wonder if he would sell more Japanese bonds to cover the new purchase. ---
**Author:** ![nola622](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/nola622/32/3597_2.png) [@nola622](https://discussion.fool.com/u/nola622)\ **Post date:** [November 21, 2022, 10:40pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/11 "2022-11-21T22:40:44Z")
> [@bigshan](#): > > I wonder if he would sell more Japanese bonds to cover the new purchase. [https://www.sec.gov/Archives/edgar/data/1067983/000119312522289445/d372820d424b5.htm](https://www.sec.gov/Archives/edgar/data/1067983/000119312522289445/d372820d424b5.htm) ---
**Author:** ![nola622](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/nola622/32/3597_2.png) [@nola622](https://discussion.fool.com/u/nola622)\ **Post date:** [December 1, 2022, 12:11pm UTC](https://discussion.fool.com/t/berkshire-boosts-stakes-in-japans-five-biggest-trading-houses/81280/12 "2022-12-01T12:11:03Z")
Final pricing on Berkshire’s Yen bond issue. 3 year through 30 year. Heaviest in 3’s and 5’s. [https://www.sec.gov/Archives/edgar/data/1067983/000119312522295825/d429190dfwp.htm](https://www.sec.gov/Archives/edgar/data/1067983/000119312522295825/d429190dfwp.htm) (it is only around $843 million USD worth in total)