Investment conglomerate Berkshire Hathway (NYSE:BRK.A) (NYSE:BRK.B) has raised $1.9 billion (281.8 billion yen) in Yen-denominated bonds, according to a Reuters report. The company is said to be increasing its exposure to Japanese capital markets via Samurai bonds. Billionaire investor Warren Buffett-led Berkshire has shown keen interest in Japanese markets, with its investments in five trading companies.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Details About Berkshire’s Bonds
Berkshire has regularly issued Samurai bonds in Japanese currency in the past five years. Berkshire’s regulatory filing reveals that the conglomerate will use the gross proceeds for general corporate purposes. Buffett’s bonds have tenors ranging from 3,5,7 to 30 years. Bonds with a three-year tranche witnessed the maximum investment of 155.4 billion yen while the five-year tranche bonds raised 58 billion yen. The exact size of the deal remains unknown currently. In April this year, Berkshire sold bonds worth 263.3 billion yen.
Berkshire plans to increase its initial investment in the five trading companies to up to 9.9%. As of date, the stake in each of the five firms stands at roughly 9%. Reports suggest that Berkshire will most likely invest in stocks that pay lucrative dividends and value stocks, in line with Buffett’s investing principles. Investors often copy Buffett’s investments. His optimism in Japan has sparked a big attraction for Japanese stocks. Japan’s Benchmark Nikkei index has gained 17.7% so far this year.
Is Berkshire Hathaway a Buy Right Now?
With one Buy versus three Hold ratings, BRK.B stock has a Hold consensus rating on TipRanks. Also, the average Berkshire Hathaway Class B price target of $463 implies 1.6% upside potential from current levels. Year-to-date, BRK.B shares have gained 27.8%.
