Berkshire CEO Greg Abel Comments on Japanese Bond Yields Impacting Trading Houses
Greg Abel, CEO of Berkshire Hathaway, stated that high bond yields in Japan are not a significant challenge for the major trading houses where Berkshire holds investments. Despite the recent rise in Japanese 10-year bond yields to a 30-year high, Abel noted they remain relatively low compared to global standards and manageable for these firms. Berkshire has stakes exceeding 10% in five of Japan's largest trading companies: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Initially limited by a commitment not to exceed double-digit ownership levels, Berkshire obtained permission from each firm six years after the initial investment to increase its holdings. Abel emphasized that these investments are long-term in nature and have delivered strong returns as shares of the trading houses grew significantly over time.
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