<p><strong><img src="https://static6.businessinsider.com/image/602bd1a72edd0f001a8d5d7d-2400/rtr4ndm5-1.jpg" border="0" alt="Warren Buffett hand waves Northwestern crowd" data-mce-source="REUTERS/Jim Young" data-mce-caption="Financial investor Warren Buffett is acknowledged during an announcement ceremony at Northwestern University in Evanston, Illinois, January 28, 2015. Roberta Buffett Elliott, the sister of Warren Buffett, has given Northwestern University more than $100 million to create the Roberta Buffett Institute for Global Studies, the largest single gift in the school's 164-year history."></strong></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>Warren Buffett has scored a $1.4 billion gain on five Japanese stocks.</strong></li><li><strong>Berkshire Hathaway revealed 5% stakes in the trading houses last August.</strong></li><li><strong>The stocks have surged 23% since then.</strong></li><li><strong><strong><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</strong></strong><hr></li></ul><p>Warren Buffett's <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a> has scored a $1.4 billion gain on its surprise investment in <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-7-billion-japanese-sogo-shosha-companies-2020-9-1029561054">five Japanese trading houses</a>.</p><p>The famed investor's conglomerate <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-reveals-6-billion-investment-5-japanese-companies-2020-8-1029546397'utm_source=markets&utm_medium=ingest#">disclosed</a> 5% stakes in <a href="https://markets.businessinsider.com/stocks/itochu-stock'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Itochu</a>, <a href="https://markets.businessinsider.com/stocks/marubeni-stock'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Marubeni</a>, <a href="https://markets.businessinsider.com/stocks/mitsubishi-stock'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Mitsubishi</a>, <a href="https://markets.businessinsider.com/stocks/mitsuico-stock'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Mitsui</a>, and <a href="https://markets.businessinsider.com/stocks/sumitomo-stock'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Sumitomo</a> at the end of August. Berkshire said it purchased the shares during the preceding 12 months.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More: </em></strong><em data-stringify-type="italic"><a href="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" data-sk="tooltip_parent">GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target themand the group has already nearly doubled over the past 3 months</a></em></p><p>The five stocks have rallied an average of 23% since then, boosting the combined value of Berkshire's stakes from below $6.4 billion to nearly $7.7 billion in under six months.</p><p>However, the quintet of Japanese stocks has trailed the Nikkei 225. The benchmark index has jumped by about a third since the end of August, and surged past 30,000 on Tuesday for the first time since 1990.</p><p>Buffett's Japanese bets are unusual, as the investor has mostly preferred American companies such as Apple, American Express, Bank of America, and Coca-Cola throughout his career.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More: </em></strong><em data-stringify-type="italic"><a href="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/stock-picks-highest-short-interest-retail-squeeze-targets-goldman-sachs-2021-2" data-sk="tooltip_parent">GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target themand the group has already nearly doubled over the past 3 months</a></em></p><p>He was <a href="https://markets.businessinsider.com/news/stocks/why-warren-buffett-berkshire-hathaway-7-billion-5-japanese-stocks-2020-9-1029555556'utm_source=markets&utm_medium=ingest#">likely attracted</a> by the trading companies' depressed valuations, their similarities to Berkshire, and the potential for joint ventures. He may also see them as hedges against inflation and a weaker dollar, and probably jumped at the chance to tap his company's vast cash reserves.</p><p><a href="https://www.businessinsider.com/warren-buffett-berkshire-hathaway-investment-gain-japanese-stocks-trading-houses-2021-2#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-travel-during-coronavirus-outbreak-planes-airports-virus-2020-3">Here's what it's like to travel during the coronavirus outbreak</a></p>
Click here to read full news..
