Warren Buffett has explained why he bought five Japanese trading houses two years ago, stating that he was 'confounded' by the opportunity. Each of the firms had in effect 'an earnings yield maybe 14% or something like that, but dividends would grow'. The Berkshire Hathaway chairman and CEO plans to hold the investments for 10 to 20 years, and has previously said that they could raise their stakes in each of the trading houses up to 9.9%. These firms boast high dividend yields and free cash flow, which is something that Buffett is interested in.

The post Warren Buffett Explains why he bought 5 Japanese trading houses: I was ‘confounded’ by the opportunity appeared first on Balanced News Summary.