Connect with us


Warren Buffett’s Berkshire Hathaway Boosts Stake in Japanese Trading Companies, Rides Wave of Success

Buffett’s Berkshire Hathaway increase stake in Mitsubishi Corp., Mitsui, Itochu, Marubeni, and Sumitomo to over 8.5% each



Warren Buffett - Investors King

Berkshire Hathaway, the multinational conglomerate led by renowned investor Warren Buffett, has once again made a significant move in the Japanese market.

The company announced on Monday that it has further increased its stake in five prominent Japanese trading companies, cementing its position and riding a wave of remarkable success.

Buffett’s Berkshire Hathaway has been steadily expanding its investments in Japan since 2020, with the latest boost bringing their average stake in Mitsubishi Corp., Mitsui, Itochu, Marubeni, and Sumitomo to over 8.5% each.

In a statement released by the company, it revealed that the aggregate value of these holdings now surpasses that of any other non-U.S. country in its portfolio.

During his visit to Japan last year, Buffett explained his fascination with these companies, highlighting their resemblance to his own conglomerate and their undervalued prices at the time. These factors, combined with his long-term investment philosophy, prompted Berkshire Hathaway to enter the Japanese market, a move that has paid off handsomely.

Buffett’s instincts appear to be on point, as the Nikkei 225 index has surged by a remarkable 28% this year, making it one of the best-performing regional indexes.

Several factors have contributed to this positive trend, including Japan’s corporate governance reforms, signs of increasing inflation and wages, and a shift in sentiment away from Chinese stocks. Additionally, the weakening yen has further bolstered the attractiveness of Japanese stocks.

Investors who followed Buffett’s lead into the Japanese financial market have been handsomely rewarded. The shares of Mitsubishi and Marubeni have skyrocketed by 62% year-to-date, while Mitsui, Itochu, and Sumitomo have enjoyed gains of 44%, 35%, and 39%, respectively. Since the start of 2020, Mitsubishi’s shares have surged fivefold, with the other companies also witnessing robust growth.

Berkshire Hathaway remains committed to its Japanese investments, with plans to hold them for the long term. The company has stated that it may increase its stakes to a maximum of 9.9% in any of the five trading companies, subject to favorable prices.


Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading


Nigerian Banks’ Borrowings from CBN Surge 835% in a Month, Raising Liquidity Concerns



Global Banking - Investors King

The Nigerian banking sector has witnessed an unprecedented 835% surge in borrowings from the Central Bank of Nigeria (CBN) in the span of just one month, igniting concerns over the nation’s liquidity stability.

Data reveals that banks’ dependence on the CBN has reached new heights, with their borrowings skyrocketing from a relatively modest N323.97 billion in August to N3.03 trillion in September. This remarkable increase underscores a growing reliance on the CBN’s support in times of financial stress.

This surge in borrowing activity has primarily been attributed to the CBN’s stringent monetary policies aimed at curbing inflation and managing the demand for foreign exchange. These policies have, in turn, squeezed commercial banks, compelling them to tap into the CBN’s Standing Lending Facility (SLF) for immediate liquidity needs.

Despite the escalating dependence on CBN funds, the Monetary Policy Committee (MPC) of the apex bank insists that the Nigerian banking sector remains fundamentally robust. MPC member Adenikinju Festus highlighted key indicators, including Capital Adequacy Ratio (CAR) and Non-Performing Loan (NPL) ratios, which still align with prudential standards. Furthermore, liquidity ratios have improved, and returns on equity and assets have risen.

However, the banking industry’s persistently high operating costs are raising alarms. In comparison to international standards, Nigerian banks are grappling with substantially higher operating expenses, prompting concerns about their long-term sustainability.

In a parallel development, the CBN’s Development Finance Department has disbursed a total of N9.714 trillion to various sectors of the economy over the past three years, with manufacturing and industries receiving the largest share at 32.6%.

Other sectors, including energy, agriculture, services, micro, small, and medium enterprises (MSMEs), export, and health, have also benefited significantly from these disbursements.

While the CBN remains committed to fostering sustainable economic growth, the surging dependence of Nigerian banks on short-term borrowings from the central bank is casting shadows on the sector’s long-term stability.

As Nigeria grapples with these liquidity concerns, the financial industry and regulators face the challenging task of charting a course towards a more resilient and sustainable banking environment.

Continue Reading

Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting



Central Bank of Nigeria - Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.

Continue Reading

Banking Sector

Currency in Circulation Surges by N1.7 Trillion Amidst Rising Cash Transactions



New Naira Notes

The currency in circulation in Nigeria has surged by N1.7 trillion, driven by a surge in cash transactions.

According to data obtained from the Central Bank of Nigeria (CBN), as of the end of August, the currency in circulation rose to N2.7 trillion.

This substantial increase in currency in circulation comes after a 235.03 percent dip to N982.1 billion as of the end of February 2023 from N3.29 trillion at the close of October 2022, primarily due to the naira redesign policy spearheaded by the CBN.

However, the currency in circulation began its steady ascent once the policy concluded. Cash that had been previously withdrawn from circulation to promote electronic payments was reintroduced into the economy, contributing to this significant boost.

The data obtained from the CBN reveals that a whopping N2.3 trillion was removed from circulation during this period.

The CBN defines currency in circulation as all legal tender currency in the hands of the general public and within the vaults of Deposit Money Banks, excluding the central bank’s vaults.

The CBN further elucidated its methodology, stating that it employed an “accounting/statistical/withdrawals & deposits approach” to calculate the currency in circulation in Nigeria. This approach meticulously tracks the movement of currency in circulation on a transaction-by-transaction basis.

Under this methodology, each withdrawal made by a Deposit Money Bank at one of CBN’s branches results in an increase in currency in circulation (CIC), while each deposit made by a DMB at one of CBN’s branches leads to a decrease in CIC.

This surge in currency in circulation reflects the evolving landscape of financial transactions in Nigeria and underscores the importance of flexible monetary policies in facilitating economic growth and stability.

Continue Reading