2023-10-31 07:21:01
Berkshire Hathaway, run by “Stock God” Warren Buffett, has bought Japan’s five major trading companies since 2020, and the returns so far have been amazing! Comrade Charlie Munger recently said that investing in Japanese trading companies is a once-in-a-century opportunity, and he can make a lot of money while minimizing risks.
(Previous summary: Buffett’s Comrades” Charlie Monger: AI is over-hyped and investing in Bitcoin is the stupidest thing in history and will “return to zero sooner or later”)
(Background supplement: The Japanese stock market hit a 33-year high! Why does it continue to soar, and the stock market god Buffett also increases investment?)
During the raging COVID-19 epidemic, Berkshire Hathaway, run by stock god Warren Buffett, unexpectedly spent US$6 billion in August 2020 to buy Mitsubishi Corporation, Mitsui Bussan, and Itochu Corporation (Itochu Shoji), Marubeni (Marubeni), Sumitomo (Sumitomo) and other five major trading companies in Japan.
From June this year, Berkshire Hathaway went one step furtherOverweightThe average shareholding ratio of the five major trading companies increased to more than 8.5%. The stock god is indeed a stock god. Since August 2020, the stock prices of Japan’s five major trading companies have increased significantly, ranging from 157% to 351%, allowing Berkshire Hathaway to obtain very considerable profits.
Trends of Japan’s five major trading companies since August 2020. Source: Tradingview
Refers to a once-in-a-century investment by Japanese trading companies
In response to this investment, Buffett’s comrade and Berkshire Hathaway Vice Chairman Monger recently accepted the podcast program Acquired Exclusive interviewShi said that such an opportunity is too tempting and irresistible. Such opportunities may come two or three times a century:
The annual interest rate on Japan’s 10-year government bonds is 0.5%, and these trading companies are all established companies. They have all these cheap copper mines and rubber plantations, so you can borrow all the money 10 years in advance and buy stocks that have a 5% dividend and a lot of cash flow, no investment required, no thinking required , without any consideration.
To put it simply, what Monger means is that Berkshire Hathaway can raise the funds needed for investment at a very low cost, and then invest these funds in stocks that pay an annual dividend of 5%. Since last spring, the United States has With interest rates climbing from near zero to over 5% and the Federal Reserve struggling to control runaway inflation, Berkshire Hathaway’s approach to trading appears to be a smart one.
However, Monger mentioned that Berkshire Hathaway can do it, but other companies cannot, because Berkshire Hathaway has an outstanding credit rating and is the only company that can borrow money on such favorable terms. Wei took a long time to establish the position.
The only way to achieve this goal is to be very patient and only buy a little at a time. It took a long time to invest 10 billion US dollars, but it was like God opened a box and put the money in. It was so easy to make money. .
Unfazed by cryptocurrencies
In contrast, Monger is still dismissive of cryptocurrencies. He said earlier in October that Bitcoin is the stupidest investment and that most cryptocurrencies will eventually return to zero. Monger and Buffett have repeatedly called Bitcoin He regards cryptocurrencies as “rat poison” and believes that cryptocurrencies are worthless, can only cause harm, and are even anti-social. He feels very ashamed that the government actually allows Bitcoin to exist.
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