Buffett touts U.S. stock holdings, Japan

Warren Buffett’s highly anticipated Berkshire Hathaway annual letter to shareholders, released Saturday, praised his core U.S. holdings as well as his penchant for Japan. 

U.S. Core Holdings

“We own a small percentage of a dozen or so very large and highly profitable businesses with household names such as Apple, American Express, Coca-Cola and Moody’s,” he wrote. 

“Many of these companies earn very high returns on the net tangible equity required for their operations. At year end, our partial-ownership holdings were valued at $272 billion.”

He also hinted at buying these stocks when others are selling. 

“Understandably, really outstanding businesses are very seldom offered in their entirety, but small fractions of these gems can be purchased Monday through Friday on Wall Street and, very occasionally, they sell at bargain prices,” he noted.

WARREN BUFFETT’S ANNUAL BERKSHIRE HATHAWAY LETTER: READ HERE

Warren Buffett, chief executive officer of Berkshire Hathaway, drinks a Cherry Coca-Cola as he tours the exhibition floor prior to the Berkshire Hathaway annual meeting in Omaha, Nebraska, on Saturday, May 1, 2010. ( Photographer: Daniel Acker/Bloomberg via Getty Images)

Japan Focus

As for Japan, Berkshire increased its exposure to companies belonging to the world’s fourth-largest economy. 

“A small but important exception to our U.S.-based focus is our growing investment in Japan. It’s been almost six years since Berkshire began purchasing shares in five Japanese companies that very successfully operate in a manner somewhat similar to Berkshire itself. The five are (alphabetically) ITOCHU, Marubeni, Mitsubishi, Mitsui and Sumitomo. Each of these large enterprises, in turn, owns interests in a vast array of businesses, many based in Japan but others that operate throughout the world” he detailed. 

The Japanese national flag is seen at the Bank of Japan headquarters in Tokyo on Dec. 19, 2023. (Photo by KAZUHIRO NOGI/AFP via Getty Images)

New Stock Purchase

Prior to his annual letter, the conglomerate took a new position in Constellation Brands, the maker of top-selling Mexican beers Corona, Modelo and Pacifico, of nearly 6 million shares, during the fourth quarter worth over $1.2 billion, according to a filing with the Securities and Exchange Commission, even as President Donald Trump threatens tariffs against Mexico. 

Modelo unseated Bud Light as the top-selling U.S. beer after the latter teamed up with transgender activist Dylan Mulvaney, which angered core customers. (Gabby Jones/Bloomberg via Getty Images / Getty Images)

Shares have fallen nearly 30% over the past 12…