Buffett Raises His Japanese Bets, as prospects for Beaten-Down Stocks Brighten

Warren Buffett is bullish on Japan. The legendary investor told Japanese media this past week that

Berkshire Hathaway

recently increased its stake in several Japanese trading houses. Japan’s

Nikkei 225

index added 3.5% on the week.

There’s lots for an investor with Buffett’s proclivities to like about Japanese stocks. For starters, they’re unloved. Despite a recent winning streak, the Nikkei 225 index is still down from its 52-week highs last summer—and nearly 30% below its 1989 record. The Nikkei 225 trades for about 16 times consensus earnings over the coming year, versus more than 18 times for the

S&P 500

index.