Warren Buffett Goes Sogo Shosha

Japanese stocks outperformed to start the new week as news of Berkshire's $6 billion stake in five Japanese trading houses bolstered local shares just one business day after the nation's equity markets were shaken by the resignation of Shinzo Abe. Shares of Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, were sharply higher on the session. Berkshire said it intends to hold the positions (described in a press release as "slightly more than 5%") for the "long term", and said that while the holdings may increase, they won't top 9.9% in any of the five investments. Buffett is pleased with the positions. "I am delighted to have Berkshire Hathaway participate in the future of Japan and the five companies we have chosen for investment", he remarked. "The five major trading companies have many joint ventures throughout the world and are likely to have more of these partnerships". Apropos of nothing, Sunday was Warren's birthday -- he is (roughly) 167 years old. From a signaling perspective, Berkshire's investment is good news for commodities and Japan. These are, of course, commodities-centric businesses, which seems to suggest Buffett's outlook on the global economic recovery ca