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.
In 2020, Mr. Buffett is Mitsubishi Corporation, Mitsui, Itochu,Sumitomo Corporation,The world was surprised by the fact that they each acquired 5% of Marubeni’s shares. At least the investment is already paying off in the form of higher stock prices, given last year’s soaring commodity prices and weaker yen. Mitsubishi Corp.’s stock has nearly doubled since late August 2020. Mitsui & Co. has increased by about 2.2 times, Marubeni by about 3 times, and Itochu and Sumitomo Corporation by at least around 70%.
It has long been pointed out that the value of Japan’s five major trading companies is underestimated due to their diversification. However, Mr. Buffett said that the structure is the same as that of Berkshire Hathaway, which he leads, and this time he has increased the investment in the five trading companies to more than 7%.
In an interview with the Nihon Keizai Shimbun on April 11, Mr. Buffett said of the five trading companies, “It’s not impossible to build relationships as business partners in the future.”
In an interview with Bloomberg, executives from Mitsubishi, Mitsui, Marubeni and Sumitomo all confirmed that they met with Buffett at a hotel in Tokyo. Itochu Corporation declined to comment, including whether there was an interview.
Furthermore, through interviews with Mr. Buffett, Mitsubishi Corporation said in an email to Bloomberg that it “recognizes that he sympathized” with the company’s promotion of digitalization and creation of the future through regional revitalization and creation of new industries. answered with Sumitomo Corporation also responded that it would continue dialogue as a major shareholder and business partner.
Mitsui & Co. responded, “We were able to have a meaningful exchange of opinions on how to expand our profits in this global age, while gaining an understanding of how we use our management resources and management policies.” Marubeni commented, “We aim to maximize shareholder value, including Berkshire, by continuing to increase our corporate value.”
2023-05-01 23:10:00
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