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Abel: Two ways Berkshire hopes to cash in on AI
CNBC • • business
Key Points:
- Berkshire Hathaway has increased its stake to over 10% in each of Japan's top five trading houses, with CEO Greg Abel currently in Japan strengthening relationships and exploring opportunities.
- Abel highlighted the success of Tungaloy, a Berkshire operating unit in Japan, and emphasized the long-term nature of their investments and partnerships in the region.
- Berkshire has a strategic partnership with Japanese insurer Tokio Marine, holding a 2.5% interest, and is open to supporting potential acquisitions if mutually beneficial, though no specific deals are confirmed.
- Despite rising Japanese bond yields, Berkshire continues to find its yen-denominated debt manageable and plans to issue more debt as appropriate, supported by strong company performances and dividends.
- On U.S. housing, Berkshire is taking a long-term view amid rising mortgage rates, having recently acquired Taylor Morrison and increased its stake in Lennar, while also noting a bumpy market recovery ahead.
