Warren Buffett’s surprising $6 billion bet on five Japanese trading companies spotlights the appeal of Japan’s long-depressed stock market.
While the overall market is inexpensive, better Japanese companies trade for loftier valuations—reflecting in part Japan’s ultralow interest rates. But she says the situation has improved a lot since Abe made structural corporate reforms one of his three “arrows” to boost the economy after becoming prime minister for a second time in 2012, with easy monetary policies and fiscal stimulus.Source: Bloomberg
Its top five companies— Toyota Motor , Sony , SoftBank Group , Keyence , and Nintendo —have their attributes, but don’t compare to the U.S. giants. Only four companies in Japan have market values above $100 billion—against about 65 in the U.S. Hennessy’s Takeda is partial to Daikin, the world’s No. 1 air-conditioning company and a rival to Carrier Global and Trane Technologies in the U.S. “It’s not just air conditioning, but air-purification technology, which is important in a Covid-19 world,” he says.
At around $130, Toyota trades for about 11 times projected earnings in its March 2022 fiscal year and yields 3%. It had net cash and equivalents of more than $80 billion at its core car operations at the end of March, or nearly 50% of its market value.
$JPY 💹💹🤑🤑🤑🤑🤑🤑
Warren Buffett can afford to bet on Japanese stock. imjustsaying
wonder why
China is a better bet.
Warren is comfortable with how Japan controls it’s media and doesn’t talk about how it treats the world’s whales and dolphins Business as usual.
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