The P/B ratio being below 1x for these companies is wild when you consider they're basically diversified holding companies with real operting businesses across energy, tech, and infrastructure. What most people miss is that Itochu specifically has shifted away from commodity exposure toward consumer facing assets like FamilyMart which gives them direct insight into consumption paterns. The yen denominated returns combined with potential currency appreciation creates a double win that's rare to find in developed markets. Buffett's 70% gain since 2019 while building the position larger tells you everything about the mispricng that still exists in these names.
The P/B ratio being below 1x for these companies is wild when you consider they're basically diversified holding companies with real operting businesses across energy, tech, and infrastructure. What most people miss is that Itochu specifically has shifted away from commodity exposure toward consumer facing assets like FamilyMart which gives them direct insight into consumption paterns. The yen denominated returns combined with potential currency appreciation creates a double win that's rare to find in developed markets. Buffett's 70% gain since 2019 while building the position larger tells you everything about the mispricng that still exists in these names.