Warren Buffett and his successor, Greg Abel, says Berkshire Hathaway says this bet at a value of $ 20 billion for “50 years or forever” – Apple: AAPL), American Express (NYSE: AXP)
What started quietly years ago has grown to a long -term play Berkshire Hathaway Inc. BRK BRKSince the company does not indicate any intention to slow or reassess its wager $ 20 billion on Japanese trade companies, amid the variable total climate.
What happened: Saturday, during the meeting of the annual shareholders of Burkechire, Warren Buffett He treated a question from the public regarding the company’s investments in Japan and its expectations for itself in light of the high potential interest rates by the Bank of Japan.
Puffett said he was not upset with the background of the macro, saying: “I will allow the people of Japan to determine the best of work in terms of economics.”
Then he went to reaffirm his confidence in the five Japanese trade companies, Mitsubishi MsbhfMarubini Maroyand Mitzoy Metsand Sumitomo SMFG and Itouchi ItocyExpressing continuous optimism over both of their horizons and the wider Japanese economy.
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Buffett pointed out that when he gained stakes in these commercial homes six years ago, they were “selling at low prices.” He added that his condemnation was deepened over time, as he learned better companies and driving teams.
He said: “Japan’s record was unusual,” noting the strong presence of many major American companies in the region, including many Berkshire’s possessions like Apple Inc. Aapland Coca -Cola Company CoAnd American Express Axp.
“In the next fifty years, we will not think about selling them [Japanese trading houses] Stocks, “not only confirm his long -term condemnation but also to condemn the Chairman of Berkshire, and his newly appointed back, Greg Abel.
“It was a very good investment, but we really imagine the investment contract for 50 years or forever,” Abel continued, adding that he hoped to “do big things with them worldwide.”
Why do it matter: Early last month, Berkshire was to prepare another round of yen resistant bonds, and it was reported that it aims to re -finance maturity debts and increase their shares in her Japanese plays.
Former Vice President Charlie Monger Description of the investment as “irrational”, referring to Japan Low borrowing ratesAbout 0.50 %, attractive profit distributions that exceed 5 % offered by commercial homes.
The company informed its results in the first quarter on Saturday, as operating profits decreased by 14 % year on an annual basis to 9.6 billion dollars. The decrease was primarily due to the beating of $ 1.1 billion to make profits from forest fires in southern California during the quarter.
Price work: Berkchire shares increased by 1.80 % on Friday, and increased by 0.35 % after hours after the company’s first results, according to data from Benzinga Pro.
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