Buffett-Led Boom Proves Short-Lived for Most Japan Trading Firms
Pedestrians cross in front of an electronic stock board in Tokyo.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
A share-price surge in Japan’s trading houses triggered by Warren Buffett’s $6 billion investment is already fading, due to a lack of fresh catalysts and a downturn in commodity markets.
Shares of two of the five “sogo shosha” -- as the commodity-centric Japanese conglomerates are called -- are now trading at or below levels before Buffett’s Berkshire Hathaway Inc. announced its stake purchase. The August announcement, among the largest-ever investments by Buffett in Japan, not only sparked a rally in stocks, but also boosted overall investor interest in the trading companies.