Japanese traders rise as Warren Buffett says he plans to buy more

Shares of Japanese trading companies rose in Tuesday afternoon trading after Warren Buffett, chairman and chief executive officer of Berkshire Hathawaysaid he plans to increase his stake.

In an interview with NikkeiBuffett said he is considering investing more in five major Japanese trading companies, adding that he is “very proud” of his existing investments in them.

Shares of Mitsubishi Corporation up 2.7% in Japanese afternoon trading, Mitsui & Co. up 2.6%, Itochus Corporation up 2.5% and Marubeni Corporation up 3.7%. Sumitomo Corporation. also increased by 2.7%.

Buffett told Nikkei that he plans to meet with the companies over the weekend “to really discuss their businesses and emphasize our support,” according to the report.

Japan’s five largest trading companies – known as sogo shosha – are conglomerates that import everything from energy and metals to food and textiles into resource-scarce Japan. They also provide services to manufacturers. Trade centers have helped develop the Japanese economy and contributed to the globalization of Japanese business.

Buffett told Nikkei that he currently holds a 7.4% stake in Itochu — an increase of about 0.6 percentage points from the 6.8% holding disclosed in November regulatory filings.

Late last year, Berkshire Hathaway increase its position in top five trading companies in Japan at least 1 percentage point to more than 6% each — after First purchase in Augustwhen Buffett bought shares worth more than $6 billion in total on his 90th birthday.

November filings show Berkshire Hathaway’s position standing at 6.6% in Mitsubishi Corporation6.6% in Mitsui & Co., 6.2% in Itochus Corporation., 6.8% Marubeni Corporation and 6.6% in Sumitomo Corporation.

Private Nikkei report that Buffett’s Berkshire Hathaway is preparing to issue another yen bond, which is seen as a signal that the group will increase its investment in Japan.

— CNBC’s Becky Quick contributed to this report