Classics never go out of style! Berkshire plans to increase its holdings in Japan's five major trading houses, "strong cash flow + dividends + buybacks" firmly locking in long-term capital.

ZHITONG FINANCE APP has learned that the Japanese trading house positions established in the Buffett era are becoming a long-term allocation for the U.S. insurance and investment giant Berkshire Hathaway Inc. that will span management succession, rather than a phased trade awaiting monetization and exit. Berkshire began buying the five major trading houses in July 2019 and first publicly disclosed the holdings in August 2020, with stakes in each company slightly above 5%; it then gradually increased its holdings, and the initially agreed ownership caps were also moderately relaxed after obtaining the consent of the investee companies. Masahiro Okafuji, chairman of Itochu Corp, one of Japan's five major trading houses, said on Wednesday that Berkshire is considering increasing its stake in Japanese general trading companies.