{"id":208234,"date":"2024-02-26T10:07:27","date_gmt":"2024-02-26T10:07:27","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/02\/26\/warren-buffett-japan-management-far-less-aggressive-on-their-pay\/"},"modified":"2025-06-25T17:21:34","modified_gmt":"2025-06-25T17:21:34","slug":"warren-buffett-japan-management-far-less-aggressive-on-their-pay","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/02\/26\/warren-buffett-japan-management-far-less-aggressive-on-their-pay\/","title":{"rendered":"Warren Buffett: Japan management ‘far less aggressive’ on their pay"},"content":{"rendered":"

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Warren Buffett\u2019s favorite Japanese trading houses climbed after he said in his\u00a0letter<\/a>\u00a0to investors the companies follow shareholder-friendly policies that are \u201csuperior\u201d to those practiced in the U.S.<\/p>\n

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Marubeni Corp. gained the most in four months, rising as much as 5.6% on Monday. The other four trading companies that Berkshire Hathaway Inc. holds\u2014Mitsubishi Corp., Itochu Corp., Mitsui & Co., and Sumitomo Corp.\u2014also rose, outperforming the broader market.<\/p>\n

\u201cBuffett used a lot of space in his letter to talk about Japanese trading firms,\u201d which boosted investor confidence in the companies, said Mineo Bito, president of Bito Financial Services Co. in Tokyo. The U.S. investor took up about a page of his 16-page annual letter to shareholders to discuss the Japanese firms.<\/p>\n

Buffett will likely increase his stakes in them as they\u2019re still undervalued and there\u2019s still room before reaching the maximum 9.9% stake limit that Berkshire has declared, said Bito, who has attended U.S. insurer\u2019s shareholder meetings since 2014.<\/p>\n

The gains come after the Nikkei 225 Stock Average\u00a0reached<\/a>\u00a0an all-time high last week, driven by the weaker yen, a global tech rally and improving shareholder returns. Buffett\u2019s renewed endorsement last year also supported overall confidence in the market.\u00a0<\/p>\n

Japanese trading houses have surged to record highs since Buffett said in\u00a0April<\/a>\u00a0that he would be raising his holdings in them. Mitsubishi, Japan\u2019s biggest trading house, has surged about 111% over the past year, while Mitsui & Co. has jumped more than 70%.<\/p>\n

Berkshire\u2019s year-end unrealized gain in Japan\u2019s five largest trading houses was $8 billion, it said in its earnings statement. It now owns about 9% of each of the five trading houses with the total cost coming to \u00a51.6 trillion, it said.\u00a0<\/p>\n

Buffett\u2019s letter to stakeholders said that the five trading companies have reduced the number of their outstanding shares at \u201cattractive\u201d prices.<\/p>\n

The companies\u2019 managements have been \u201cfar less aggressive\u201d about their compensation than in the U.S., the letter also said. The firms are applying only about a third of their earnings to dividends, and much of the rest are used to build their businesses and repurchase shares, it said. Berkshire reiterated the possibility to partner with their companies in the future.<\/p>\n

Expectations and attention on trading companies are set to increase as they head toward earnings, as the stocks aren\u2019t overvalued yet and Berkshire is likely buying on the premise of long-term holdings, said Masayuki Otani, chief market strategist at Securities Japan Inc.\u00a0<\/p>\n<\/div>\n

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[ad_1] Warren Buffett\u2019s favorite Japanese trading houses climbed after he said in his\u00a0letter\u00a0to investors the companies follow shareholder-friendly policies that are \u201csuperior\u201d to those practiced<\/p>\n","protected":false},"author":1,"featured_media":208235,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/208234"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=208234"}],"version-history":[{"count":2,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/208234\/revisions"}],"predecessor-version":[{"id":342102,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/208234\/revisions\/342102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/208235"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=208234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=208234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=208234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}