OMAHA, Nebraska (Reuters) -Warren Buffett on Saturday gave a full-throated endorsement to the five Japanese trading houses in which his conglomerate Berkshire Hathaway has invested.
Buffett spoke at Berkshire's annual shareholder meeting in Omaha, Nebraska, 1-1/2 months after Berkshire said it raised its stakes in Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo to as high as 9.8%.
Berkshire's investments in the companies had totaled $23.5 billion at the end of 2024.
"In the next 50 years, we won't give a thought to selling those," Buffett said. "We have been treated extremely well by the five companies.... Our main activity is just to cheer and clap."
Greg Abel, a Berkshire vice chairman who is expected to succeed Buffett as chief executive, added that he envisioned Berkshire owning the trading houses for 50 years "or forever."
"We're building relationships," he said, "and we really hope to do big things with them."
Known as "sogo shosha," Japanese trading houses trade in a variety of materials, products and food, often serving as intermediaries, and provide logistical support.
They are also deeply involved in the real economy in such areas as commodities, shipping and steel.
Berkshire began investing in the trading houses in 2019, and revealed 5% ownership stakes on Buffett's 90th birthday the following August.
Buffett prefers to avoid businesses he says he does not understand, and has likened the trading houses to his own conglomerate.
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