Warren Buffett's Cheap Debt Bet On These Japanese Stocks Is Minting 'Infinite Returns', Fund Manager Calls It A 'No-Brainer'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 28 2025
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Source: Benzinga
Warren Buffett's Investment Strategy: In 2020, Warren Buffett acquired over 5% stakes in Japan's five largest trading companies, leveraging low-interest yen loans to generate significant cash returns, resulting in a projected $12 billion stake by late 2024.
Financial Gains and Market Positioning: The investment strategy involved borrowing at around 0.5% interest while securing dividend yields of 7-8%, leading to an "infinite return" on equity as dividends recouped initial capital before substantial share price increases.
Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRK.A is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 726200.000
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Current: 726200.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
