What does Warren Buffett want with Japanese trading houses?

Safe as houses – What does Warren Buffett want with Japanese trading houses? | Business | The Economist

Berkshire Hathaway gambles on five businesses that look a lot like his own

✒ Pouring $6bn into 5% stakes in Japan’s 5 biggest trading houses.

While US stocks are looking expensive and dividends are falling, these Japanese businesses look comparatively cheap (4 out of 5 trading below book value), are paying reliable dividends, and can serve as a hedge against USD decline.

These trading houses are shifting from commodities to venture capital and private equity, whose conglomerate structure is not unlike Berkshire’s own. To avoid the conglomerate discount, it may be easier for individual investors – who are interested in following the Oracle of Ohama – to invest directly into these companies instead.