Does tariffs undermine Buffett's confidence? Berkshire Hathaway issues ¥90 billion bond "setting a historical minimum record," Japanese stock index plunges by 1,000 points.

Despite the recent turmoil in global financial markets due to the Trump administration's tariff policy, Berkshire Hathaway, an investment firm owned by Warren Buffett, announced on April 11 the issuance of a total of 90 billion yen (about $626 million) in Japanese yen bonds. However, it is worth noting that the size of this issuance is much lower than the previous Berkshire issuance, setting a record for the smallest in history. (Synopsis: Buffett full of cash has shot!) Increase investment in Japan's five major trading companies, bearish on the US economy? (Background supplement: Buffett rarely criticizes Trump: Tariffs increase is an act of war, stock god bubble indicator hits a new high) Despite the recent turmoil in global financial markets due to the US Trump administration's tariff policy, Berkshire Hathaway, an investment company under Warren Buffett, announced on April 11 the issuance of a total of 90 billion yen (about $626 million) of yen bonds, covering 6 tranches of bonds with a maturity of 3 years Ranging from 30 years, Berkshire's 10th issuance since it first issued yen bonds in 2019. Smallest yen bond issuance in Berkshire's history However, it is worth noting that this issuance is much lower than the previous Berkshire issuance, setting a record record for the smallest issuance (281.8 billion yen in October 2024). It is speculated that the reason for this should be mainly attributed to the tariff policy pursued by the Trump administration in the United States. Reuters reported yesterday that Trump's tariff policy at the beginning of this month caused global trade war fears, causing volatility in the bond market to rise and long-term interest rates to fall. Berkshire's tapering also reflects its caution against the backdrop of tariffs, while other Japanese companies such as Asahi Group Holdings and Nissin Foods have even directly postponed their bond issuance plans as a result. In addition, Nikkei Asia further analyzed that the deterioration of the market environment has also increased the cost of bond issuance, and the spread of Berkshire's 3-year bond issuance reached 70 basis points, higher than in previous years, indicating the market's concern about uncertainty. Despite this, however, Berkshire's insistence on issuing yen bonds underscores Buffett's long-term commitment to the Japanese market. Reuters continued to point out that the market speculates that the funds may continue to be used by Berkshire to increase its stake in the five major trading companies or invest in other Japanese companies to consolidate Berkshire's presence in Japan. "Nikkei Asia" also added that the diversified business of the five major trading companies has made it relatively resistant to the decline in the trade war, and Buffett's choice to issue bonds at this time also shows to a certain extent that it sees current market fluctuations as investment opportunities. Japan's stock market and the stock prices of the five major trading companies fell However, Berkshire's reduction in the scale of bond issuance this time also revealed to the outside world that the potential threat of tariffs is very large. Or affected by this, the Nikkei 225 index closed down 4.22% yesterday, down 1,460.55 points, and once plunged nearly 2,000 points during the session, as low as 32,626 points. Although it recovered slightly after yesterday's close, it still recorded a decline of 2.96%, down 1,032.42 points for the day to close at 33,585.58 points. At the same time, the shares of the five major trading companies invested by Berkshire have not been spared the drag of the broader market. After the US stock market closed yesterday, Mitsubishi Corporation fell 3.62%, Mitsui & Co. fell 3.18%, ITOCHU Corporation fell 3.71%, Sumitomo Corporation fell 2.05%, and Marubeni fell 1.46%. It is worth mentioning here that Berkshire's investment in the Japanese market began in August 2020, when Buffett announced the purchase of shares in Japan's five major trading companies - Mitsubishi Corporation, Mitsui & Co., Itochu Corporation, Sumitomo Corporation and Marubeni with a stake of about 5%, and said that it will hold it for a long time and may increase its holdings to 9.9% in the future. The reason why these five trading companies can be favored by Buffett is that they have become stable assets against market fluctuations in Buffett's eyes by covering diversified businesses such as energy, metals, logistics, and food. Related reports Interview with Mr. Cat: I am in Japan, collecting cryptocurrency to sell houses Japan has developed a "nuclear waste battery"! Reusable depleted uranium for power generation, and 0% CO2 emissions Japan's Financial Services Agency revised the law proposal: crypto assets will be classified as financial products, strict control of insider trading [tariffs hit Buffett's confidence? Berkshire Hathaway's 90 billion yen bond "hit the smallest record in history", and the Japanese stock index plunged 1,000 points" This article was first published in BlockTempo's "Dynamic Zone Trend - The Most Influential Blockchain News Media".