Warren Buffett takes a step back from the crumbling US economy
- Legendary investor Warren Buffett recently made a curious $6 billion investment in five Japanese firms.
- The investment is considered "un-Buffett-like," and it led to many speculations.
- Among them was the possibility of Buffett changing his tactics, and perhaps even going after Bitcoin soon.
The legendary investor, Warren Buffett, recently made a major change in his investment patterns. While many have recently predicted that Buffett is likely to start investing in crypto soon, this is still not the case. However, given the bad state of the US economy at the moment, it is hardly surprising that investors like Buffett might want to secure their wealth.
Buffett leaving US firms in favour of Japan
In order to prevent his company, Berkshire Hathaway, from going down with the US economy, Buffett decided to reduce the firm’s dependence on the economic power of the US.
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Instead, he made a $6 billion investment in the five largest trading houses in Japan, taking a 5% stake in several firms.
The companies that Buffett had selected include Mitsubishi Corp, Sumitomo Corp, Itachu Corp, Mitsui & Co. Ltd., and Marubeni Corp. The move came right around Buffett’s 90th birthday, and it will secure Berkshire Hathaway by reducing its dependence on the US economy and having it rely more on Japan’s economy.
The fact that Buffett decided to invest in Japanese firms, rather than those in the US, is not at all surprising, given the circumstances. However, investors were confused by his choice of companies to invest in, as the mentioned trading houses have not been among the investor favourites.
Even the chief investment strategist from Mitsubishi UFJ Morgan Stanley Securities, Norihiro Fujito, noted that going for all five firms instead of only a few is very “un-Buffett-like.”
Bitcoin might still be next
Apart from making investments in Japanese firms that are not seen as investor favourites, Buffet also recently invested in Barrick Gold. This is what led many to believe that digital gold — Bitcoin (BTC) — would be the logical next step.
However, others have pointed out that Buffett’s advanced age might make it difficult — if not impossible — for him to successfully “get into Bitcoin.” Right now, people seem to believe two things — either that Buffett is at the edge of buying BTC, or that he will never do it in his lifetime.
Some even believe that BTC is nearing its ATH and that a move towards it will force Buffett into action. However, for the time being, the Oracle of Omaha continues to invest in what he knows, leaving cryptocurrency aside.