Othergoing back to Buffett's childhood there was a racetrack in Nebraska called ataran which is Nebraska spelled backwards when Buffett was a teenager he used to go to the racetrack and he had several activities on the racetrack he had tips for the beers he had newsletter called stable boy selections which he used to sell to help the people who were betting and then after all the races were over he would gather up all the tickets that people had discarded on the ground in the trash cans and so on he would bring them all home and he would go through each one carefully to see if some drunk had discarded a winning ticket of course most tickets that are discarded are going to be useless and they actually discarded for good reasons but he would find a decent number of these discarded tickets that actually were winning ticket in 2012 when we went
Questionerwere winning ticket in 2012 when we went to Omaha bit takes us into his private office and I noticed in his private office the Japan company handbook and it's basically value line for Japan it has half a page on every listed Japanese companies the print is even smaller than the Moody's man is giving you a little bit of quantitative data earnings dividends market cap Book value we know Japanese stocks are so cheap Buffett on his birthday in 2020 August 30th Berkshire announced that they have taken more than a 5% stake in five Japanese trading companies mitsui Mitsubishi marui Tomo and he did a couple of interesting things with this Japanese bet first he didn't put up any Capital he invested I believe about 5 billion and he borrowed the entire 5 billion in yen in Japan at a half a percent interest per year fixed these five trading companies had a 8% dividend year
Questionertrading companies had a 8% dividend yeartrading companies had a 8% dividend year he was going to be paying on 5 billionhe was going to be paying on 5 billionhe was going to be paying on 5 billion about 25 million a year in interest andabout 25 million a year in interest andabout 25 million a year in interest and he was going to be collecting about 400he was going to be collecting about 400he was going to be collecting about 400 million a year in dividends thesemillion a year in dividends thesemillion a year in dividends these companies have been around for decadescompanies have been around for decadescompanies have been around for decades and decades he visited with Greg AELand decades he visited with Greg AELand decades he visited with Greg AEL earlier this year to Japan and he metearlier this year to Japan and he metearlier this year to Japan and he met all the five companies and he's bumpedall the five companies and he's bumpedall the five companies and he's bumped up the positions now they're about 8% orup the positions now they're about 8% orup the positions now they're about 8% or so each what has happened in the last 3so each what has happened in the last 3so each what has happened in the last 3 years since that filing the 400 millionyears since that filing the 400 millionyears since that filing the 400 million dividend is now 800 million and the 5dividend is now 800 million and the 5dividend is now 800 million and the 5 billion is maybe 12 billion somethingbillion is maybe 12 billion somethingbillion is maybe 12 billion something the return on equity on that bet isthe return on equity on that bet isthe return on equity on that bet is infinite because there was no equityinfinite because there was no equityinfinite because there was no equity Pura if you look at the 2022 letter thatPura if you look at the 2022 letter thatPura if you look at the 2022 letter that Buffet Ro which came out this year heBuffet Ro which came out this year heBuffet Ro which came out this year he said that in 58 years of runningsaid that in 58 years of runningsaid that in 58 years of running Burkshire there have been 12 ideas or 12Burkshire there have been 12 ideas or 12Burkshire there have been 12 ideas or 12 things that he has done that have movedthings that he has done that have movedthings that he has done that have moved the needle if we look at the lastthe needle if we look at the lastthe needle if we look at the last several years for Buffett the two ideasseveral years for Buffett the two ideasseveral years for Buffett the two ideas that really stand out have been applethat really stand out have been applethat really stand out have been apple and the Japaneseand the Japaneseand the Japanese BS