How Warren Buffett's big Japanese investments fared in the global market rout

  • 📰 CNBC
  • ⏱ Reading Time:
  • 21 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 72%

Nikkei 225 Index News

Berkshire Hathaway Inc,Warren Buffett,Japan

The Japanese stocks Buffett holds initially cratered as much as 30% but bounced back by the end of the week, in tandem with the broader market.

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Is This Warren Buffett Stock a Buy After Q2 Earnings Beat?Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Moodys Corporation, Berkshire Hathaway B, Berkshire Hathaway Inc Class A. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

CrowdStrike outage losses biggest test yet for risky cybersecurity insurance market Warren Buffett warned aboutWarren Buffett has warned that risky cyberinsurance could lead to massive losses. The CrowdStrike outage may be biggest test yet and a ‘bad…
Source: nbcchicago - 🏆 545. / 51 Read more »