While Buffett has stayed relatively cautious on the acquisitions front since Covid-19 rippled through the global economy, his company has been increasing its commodities exposure with deals including a US$4 billion agreement to purchase most of Dominion Energy Inc.’s natural gas pipeline and storage assets in July. Valuations in the sector have trailed the broader stock market in recent years, dragged down by falling commodities prices and an investor rotation toward technology stocks that has accelerated during the pandemic.
Warren Buffett’s Berkshire Hathaway Inc. bought stakes in five Japanese trading companies that dominate the nation’s energy and raw-materials industries, adding to the billionaire investor’s wager on the commodities sector and marking one of his biggest-ever forays into Asia’s second-largest economy.
Berkshire acquired the stakes of about 5% in Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. and Sumitomo Corp. over the past twelve months, the U.S. conglomerate said in a statement. The combined investments were valued at more than US$6 billion ($8.147 billion) after shares of all five companies jumped at least 5% in Tokyo trading on Monday.
