This week's violent global market meltdown started in Japan — where Warren Buffett has big investments — but the damage was limited. The Nikkei 225 index , a benchmark for Japanese stocks, plunged 12.4% on Monday, its worst day since "Black Monday" in 1987, triggering a domino effect globally. The sell-off was triggered by a small rate hike by the Bank of Japan , lifting rates to their highest in 15 years and unwinding of the yen "carry trade.
$8 billion paper profit The Oracle of Omaha first started selling Japanese debt in 2019 and used the proceeds to fund Berkshire's purchase of stakes in five local mini-conglomerates, known as sogo shosha , that import everything from energy and metals to food and textiles into resource-scarce Japan. By issuing yen bonds, Buffett has been able to limit currency risk when buying stocks overseas.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »
Source: nbcchicago - 🏆 545. / 51 Read more »