“Warren Buffett meets with Japan’s top trading companies to explore new business opportunities”

When Warren Buffett, a prominent American investor, visited Tokyo in early April, the executives of Japan’s five largest trading companies were visiting his suite in turn.

At the Four Seasons Hotel in central Tokyo, executives were desperate to impress Mr. Omaha, a major shareholder of each company.The president of Mitsui & Co. is healthcare,Mitsubishi executives are offshore wind power generation,Itochu explained the potential of its expanding textile business.

Buffett listened intently to executives at the more than 100-year-old trading firm and asked many questions, people familiar with the matter told Bloomberg. He wanted to know not only about their business, but also about the economic climate, his views on geopolitics, and what was next. And he told them he was eager to find an opportunity to do business together.

Trading companies, which benefited from last year’s soaring resource prices, are increasingly aware that their profit levels have probably peaked. In order to protect itself from volatile commodity market conditions, it is aiming to accelerate the shift to new fields. We are at a turning point in business, such as accelerating decarbonization efforts and investing in green energy.

“Buffett basically realized that trading companies can create business opportunities and that they have a historical foundation to go further,” said Seijiro Takeshita, a professor at the University of Shizuoka who specializes in international management. “They generally have very good antennas,” he said, adding that information obtained overseas can be used in Japan.