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

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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.

 

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