Buffett Increases Investment in Japanese Trading Companies, U.S. Stocks Rebound, BNB Shows Strong Performance
The U.S. stock market rose for the second consecutive day, continuing its recovery after last week’s 10% significant decline. Warren Buffett’s increased investment in Japanese trading companies has also led investors to wonder if Berkshire Hathaway, with its ample cash reserves, is poised to enter the market to seize bargains. Yesterday, cryptocurrencies saw a slight rebound, with BNB Chain (BSC) attempting to capture the meme market share from Solana, and this strategy appears to be effective, as trading volume surpassed that of Solana, with BNB showing relatively strong performance, rising nearly 5% in 24 hours.
Mixed retail sales data as the market focuses on Federal Reserve decisions
Although the latest economic data did not alter traders’ bets on the Federal Reserve’s outlook, the mixed retail sales data presents a nuanced picture. U.S. retail sales in February grew by 0.2% compared to the previous month, better than the downwardly revised decline of 1.2% from the prior month. While this figure fell short of market expectations, investors believe that consumer spending has not collapsed. With discussions surrounding tariffs gradually subsiding, the stock market continues to recover from technically oversold levels.
This week is a pivotal one for central banks, starting with the Bank of Japan on Wednesday, followed by the Bank of England’s interest rate decision on Thursday, and the market’s main focus will be on the U.S. Federal Reserve’s two-day meeting beginning on Tuesday. There is a general expectation that the Federal Reserve will maintain interest rates at this meeting, but investors will be looking for indications of a shift in the central bank’s outlook on the economy in light of the economic forecasts released and Powell’s comments at the post-meeting press conference.
Scott Bessent, a former hedge fund manager on Wall Street and now the U.S. Treasury Secretary, stated that he is not concerned about the recent stock market downturn as the U.S. seeks to reshape its economic policy.
(No guarantee of avoiding recession! U.S. Treasury Secretary Bessent: Continuous rises are unhealthy, the government is resetting its economic course)
Buffett increases investment in Japanese trading companies; is Berkshire Hathaway set to buy at a bargain?
As indicated by Warren Buffett in his annual letter to shareholders three weeks ago, a document submitted to Japan’s Ministry of Finance on Monday showed that his Berkshire Hathaway has increased its stakes in Mitsubishi Corporation, Marubeni Corporation, Mitsui & Co., Itochu Corporation, and Sumitomo Corporation.
Buffett mentioned that the trading companies themselves have agreed to “moderately” relax the previous 10% ownership cap, leaving room for further purchases. His acquisitions in 2020 and 2023 have contributed to a broad rise in Japan’s stock market.
(Berkshire holds long-term positions and increases stakes in Japanese trading companies; will investors benefit from both stock and currency gains as the yen appreciates?)
The Nikkei 225 index has fallen over 6% this year, while the Topix index has declined over 1%. Meanwhile, in the U.S., the S&P 500 index has dropped by approximately 4.5%. The recent declines have led many investors to speculate whether the cash-rich Buffett will re-enter the market to buy stocks again.
BNB and TRX shine
Yesterday, cryptocurrencies saw a slight rebound. BNB Chain (BSC) appears to be successfully capturing the meme market share from Solana, as yesterday’s trading volume exceeded that of Solana, with BNB showing relatively strong performance, rising nearly 5% over 24 hours and almost 18% over the week.
(BNB Chain launches AI meme battlefield! Shell Launchpad goes live, BSC trading volume surpasses Solana)
TRON DAO reported that TRON achieved annual revenue exceeding $2 billion in 2024, representing a year-on-year growth of 116%. Additionally, TRON has completely burned 100% of TRX transaction fees, making it one of the few deflationary blockchains. TRX rose 4% in 24 hours.
Risk Warning
Investing in cryptocurrencies is highly risky, and prices can be extremely volatile; you may lose all your principal. Please evaluate risks carefully.
