Buffett boosts Japanese trading houses with investor letter endorsement, sparks market surge

In a notable endorsement, Warren Buffett praised Japanese trading houses in his investor letter, citing their superior shareholder-friendly policies over those in the US. Marubeni Corp. surged 5.6%, leading gains for Berkshire Hathaway's holdings – Mitsubishi Corp., Itochu Corp., Mitsui & Co., and Sumitomo Corp. Buffett's confidence in these firms prompted positive investor sentiment, with potential for increased stakes. Japanese trading houses have seen record highs, outperforming the market, driven by a weaker yen and improving shareholder returns, making them an attractive long-term investment for Berkshire.

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By Aya Wagatsuma

Warren Buffett's favorite Japanese trading houses climbed after he said in his letter to investors the companies follow shareholder-friendly policies that are "superior" to those practiced in the US.

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