IHREF - Follow Buffett Into Japan
Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B) recently purchased 5% stakes in five Japanese general trading firms, known as "sogo shosha."
Jesper Koll, WisdomTree's Japan Strategist, believes a number of considerations beyond the traditional inexpensive valuations and great cash flow motivated Buffett's purchases:
Sogo shosha can be a great inflation hedge. They are an integral part of global markets for commodities, both soft and hard. Shares typically track inflation, which is important as many investors are now looking for good inflation hedges.
Sogo shosha are dominant venture capital firms in Japan. They see every deal. Buffett