Warren Buffett makes new investments are intriguing investors where the billionaire investor is putting his large cash pile in these challenging times.
Less than a year ago, the chatter was about how Warren Buffett is stockpiling cash to the tune of $128 billion, leaving some market watchers mystified as to why the great value investor is not all in.
“Warren Buffett makes new investments are intriguing investors where the billionaire investor is putting his large cash pile in these challenging times”
WEALTH TRAINING COMPANY
Warren Buffett makes new investments, a year on, in five leading Japanese trading companies
Berkshire’s National Indemnity subsidiary acquired more than 5% of the outstanding shares in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Buffett bought the shares over the past year through regular purchases on the Tokyo stock exchange.
Warren Buffett’s Berkshire has announced that it may increase its stake in any of the holdings up to a maximum of 9.9%.
“I am delighted to have Berkshire Hathaway participate in the future of Japan” said Warren Buffett at his recent 90th birthday last month .
Warren Buffett makes new investments in similar investment companies like the Berkshire fund, which invests in businesses. However, Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo investment portfolios have a Japanese focus.
Warren Buffett’s Berkshire said the Japanese deals are long term and highlighted its history of significant passive holdings.
Berkshire fund has long term passive holdings in stakes in Coca-Cola (KO) for 32 years, American Express (AXP) for 29 years, and Moody’s (MIS) for 20 years.
“I am delighted to have Berkshire Hathaway participate in the future of Japan”
WEALTH TRAINING COMPANY
Warren Buffett makes new investments in gold miners, last month, also raised interest amongst investors, particularly gold bulls who interpreted this as a bullish signal for precious metals
In August Berkshire revealed it bought nearly 21 million shares of gold mining giant Barrick Gold (GOLD), valued at more than $563 million, in Q2.
Warren Buffett makes new investments in natural gas also in early July
Two months ago, July 2020 the company agreed to acquire natural gas transmission and storage assets from Dominion Energy (DE) for $10 billion.
What’smore, last month August Berkshire Hathaway steadily nibbled at Bank of America (BAC), buying more than $2 billion worth of stock.
“Warren Buffett’s Berkshire repurchases totaled $5.1 billion in Q2” – Wealth Training Company
Warren Buffett makes new investments in buybacks
Warren Buffett’s Berkshire repurchases totaled $5.1 billion in Q2, nearly double the prior record of $2.2 billion in Q4 2019 and a reversal from slower stock repurchases of $1.7 billion in Q1.
Warren Buffett’s Berkshire latest megadeal purchase was for $37 billion Precision Castparts in 2016. The metal fabrication company manufactures investment castings, forged components, and airfoil.
So Warren Buffett makes new investments last month, putting some of his massive cash pile into value businesses. Perhaps it’s a clear sign that the world’s best value investors could see the light at the end of the pandemic economy.
However, Warren Buffett’s Berkshire has yet to make more mega-deals midway in the 2020 pandemic. But as they say, watch this space.
