ANALYSIS-Why Buffett's bet on Japan could turn on higher inflation, weakening dollar

“Warren Buffett (pic) is trying to expand his horizon but stick to his value investing roots at a time the U.S. market is very expensive," said Paul Lountzis, president of Lountzis Asset Management, which invests nearly one-fifth of its assets in Berkshire.

NEW YORK: Berkshire Hathaway Inc's US$6.2 billion foray into Japan's five largest trading houses may signal billionaire Warren Buffett's expectation that inflation and a falling U.S. dollar may make international equities more attractive when economies worldwide recover from the coronavirus pandemic.

Berkshire said late Sunday, on Buffett's 90th birthday, it owned just over 5% of each of Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co Ltd and Sumitomo Corp, and said it could increase its stakes to 9.9%.