Warren Buffett's Berkshire plans $815m in new yen bonds (2024)

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Warren Buffett's Berkshire plans $815m in new yen bonds? ›

TOKYO -- Warren Buffett's investment group Berkshire Hathaway said Friday it will sell 122 billion yen ($815 million) in yen-denominated bonds in its second such fundraising round this year. The bonds will be sold in five tranches, with the three-year bond the largest portion at 73.4 billion yen.

Berkshire Hathaway's $6.25 billion investment in the Japanese market was about as close as any business deal can get to a once-in-a-lifetime opportunity.

Warren Buffett's stock purchases in the most recent quarter include Chubb Limited (CB) and Occidental Petroleum (OXY). HP Inc. (HPQ) and Paramount Global (PARA) are among Warren Buffett's stock sales in the most recent quarter. The Berkshire Hathaway portfolio includes 41 stocks as of May 2024, including Apple Inc.

The five major trading firms — Mitsubishi Corp., Mitsui & Co., Sumitomo Corp. Marubeni Corp. and Itochu Corp.

These companies are defined by their highly diversified holdings, touching natural resources, energy, chemicals, metals, manufacturing, retail, real estate, and healthcare. Berkshire owns Sumitomo alongside Mitsubishi, Mitsui, Itochu, and Marubeni.

First, on a micro scale, each of the Japanese general trading companies has a good track record. They are stable and highly profitable, pay high dividends, and increasingly also buy back shares. This makes each of them attractive from a financial perspective, even if their results are strongly correlated.

Berkshire Hathaway is a diverse holding company with well-known subsidiaries like GEICO and Dairy Queen. The company's top three individual shareholders are Warren Buffett, Susan Buffett, and Ronald Olson. The three main institutional shareholders are Vanguard, BlackRock, and State Street.

What is Warren Buffett's golden rule? ›

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”

The first step was to write down his top 25 career goals. In the second step, Buffett told Flint to identify his top five goals from the list. In the final step, Flint had two lists: the top five goals (List A) and the remaining 20 (List B).

In the interview, he said the Berkshire shares would go to philanthropy. Part of the cash would go directly to his wife and part to a trustee. He told the trustee to put 10% of the cash in short-term government bonds and 90% in a low-cost S&P 500 index fund.

The Concept of Housing: A Consumer Good, Not an Investment 🛒💰 In Japan, a house is not an investment you grow over time. It's a consumer good that depreciates rapidly, much like a car or a refrigerator. Within 30 years, the value of a typical Japanese home drops to almost zero.

What is an akiya or empty house in Japan, and why are they so affordable? In Japan, "akiya" refers to an empty house, often abandoned or left uninhabited due to various reasons such as population decline, urbanization, or inheritance issues.

Depreciation: Like any other asset, houses depreciate over time due to wear and tear. In Japan, the depreciation of houses is accelerated by the perception that newer homes are more desirable due to modern amenities, energy efficiency, and design trends.

Warren Buffett is the largest holder of Berkshire Hathaway (BRK. A 0.58%) (BRK. B 0.38%) stock. He owns around 227,416 shares of Class A stock, and 276 shares of Class B stock.

The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, headquartered in its capital city of Tokyo. The Tokyo Stock Exchange was established on May 15, 1878. As of Sept. 14, 2021, the exchange had 3,784 listed companies.

I purchased BPL's first shares of Berkshire in December 1962, anticipating more closings and more repurchases. The stock was then selling for $7.50, a wide discount from per-share working capital of $10.25 and book value of $20.20.