Greg Abel, CEO of Berkshire Hathaway, reaffirmed the conglomerate’s commitment to five Japanese trading houses during a CNBC interview. Berkshire’s stakes in each of these five companies now exceed 10%, representing a total investment of approximately $13.8 billion. Abel indicated that these positions could be held for many decades and generate hundreds of millions of dollars in annual dividend income. The five trading houses are Itochu, Marubeni, Mitsubishi Corp, Mitsui & Co., and Sumitomo Corp, all of which approved Berkshire’s stake increase above the 10% threshold. Rising Japanese bond yields, which have reached unusual highs around 3%, do not pose a significant issue for these companies according to Abel.
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