SSUMF - Warren Buffett's Japanese investments hindered by investor perceptions

Berkshire Hathaway's ([[BRK.B]] -0.8%) ([[BRK.A]] -0.5%) investments in five Japanese conglomerates are being pressured by holdings in fossil fuel companies and by investors' perceptions that the firms' business depend heavily upon such unglamorous industries as energy, mining, and infrastructure.Warren Buffett's Berkshire announced taking stakes of at least 5% in each of Sumitomo Corp. ([[SSUMF]] +0.7%), Itochu ([[ITOCF]] -0.9%), Marubeni ([[MARUF]] -1.1%), Mitsubishi ([[MSBHF]] -0.2%), and Mitsui ([[MITSY]] -0.9%) in August 2020.Since the trading day before the investments were announced, all five Japanese companies have lagged the broader market. Sumitomo shares have risen 14% vs. a 26% increase in the Nikkei Stock Average, for example.Berkshire has a similar track record, inching up ~3% since the beginning of 2020 compared with a 19% advance for the S&P 500.Like Berkshire, Sumitomo CEO Masayuki Hyodo takes a longer-term view of investments. "Our core thinking is to build businesses that will bring broad and long-lasting

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Warren Buffett's Japanese investments hindered by investor perceptions